Those who need to borrow money fast are regularly thwarted by mainstream lending decisions, especially if in need of a no credit check cash loan. The risk faced by the lender is statistically far higher once a borrower has defaulted on other credit agreements.
Borrow Money Fast
Not all prospective borrowers are a ‘fit’ for mainstream lenders which creates a need to explore other avenues to secure the finance that is needed. It is important to appreciate that the higher risk of default will mean that borrowers will need to pay a higher rate of interest on their loan. Provided that timely repayments are made now and in the future, credit scores will start to improve.
No Credit Check Payday Loans and Pawn Shop Loans
Although reflected in the rate of APR, poor credit history loans are available – it is simply a matter of knowing where to look. The term of no credit check cash loan is considerably shorter than a bad credit secured loan because the higher APR doesn’t make it a viable long-term borrowing proposition. A loan from a pawnbroker will require collateral whereas a no credit check Payday loan won’t.
Pawn Shop Loans – No Credit Check Cash Loans with Collateral
Gold jewelry, electrical equipment, endowment policies and other items of value are used as collateral for the pawnbroker loan. Whilst interest is normally charged on a monthly basis, the item can be redeemed at any time by paying off the principal and any interest. Although the borrowing term is normally 6 months, this can be extended via a new agreement.
Poor Credit History Pawnbroker Loan Default
Unredeemed items will be sold at the end of the term to recover any money lent. According to the National Pawnbrokers Association (NPA), 88% of all items are redeemed. The majority of pawnbrokers will write to the borrower to advise them that the term is about to end. It isn’t in the interest of the lender to sell the item as it will lead to a loss of future business.
Low Interest No Credit Check Cash Loans from a Pawnbroker
The provision of collateral means that a consumer can borrow money fast (less than 20 minutes) from a pawnbroker. They are the ideal poor credit history loan as there is no credit scoring. The interest rate is typically 50% to 80%, although larger no credit check cash loans tend to attract a lower APR. It is now possible to borrow money from a pawnbroker online.
No Credit Check Payday Loan – Borrow Money Fast, Bad Credit History Not a Problem
Payday lenders offer poor credit history loans for up to £1,000. Unlike pawn shop loans, there is need for collateral. This type of no credit check loan is normally only available for a single calendar month. Every £100 borrowed will attract £20-25 interest per calender month. This means that it is necessary to consider how the borrower will bridge the income shortfall the month after.
Those who wish to borrow money fast will find that they are able to get a no credit check cash loan from a pawnbroker or payday lender. Borrowing money with a poor credit history isn’t cheap so it is important to explore all other options before signing-up. Pawn shop loans are more affordable than no credit check payday loans due to the provision of collateral.