|
|
|
As the credit crunch bites more and more families are finding themselves short
in the run-up to payday. As a consequence an increasing number of people are
turning to short term loans which require no credit check in order to tide them over until their next payday.
In the current financial climate, banks are less willing to lend to people with poor credit history. However, even with a less than perfect credit record, it's still possible to get a
short term loan. If you do not want a credit check performed on your credit file and you're willing to pay a higher rate of interest, there are some lenders offering loans with no credit check.
This site promotes payday and log book loans which are two types of short term,
no credit check loans.
|
 Payday loans are a cash advance on your salary.
Payday loan companies provide small, short term loans which mainstream lenders are
often not prepared to offer. You can usually borrow as little as £80 or as much
as £750 or £1,000 depending on your personal circumstances. The loan is repayable at your next payday whether it is
31 days away or less.
These loans may seem like a good way of getting your hands on your wages quicker than you otherwise would, but beware – the interest rates charged are high. You should only really use this type of borrowing if nothing else is available to you.
If a payday loan is your only option, for instance you are unable to borrow from a family member or friend, then it's important that you fully understand the costs and charges you will incur. Furthermore do not borrow for a day longer than absolutely necessary as the charges will
rack up. Pay day loans may be good in emergencies, for example if you need to
pay a plumber or pay for repairs to you car, they are designed to bridge the gap until
payday. But under no circumstances should they be used as a long term
solution to your borrowing needs. To qualify you will need to be aged over 18,
be in full time employment and have a bank account with a valid debit card.
Funds are usually transferred to your account on the same working day as your
loan is completed. No personal credit checks are undertaken. |
|
 Logbook loans are secured against your vehicle. Companies offering log book
loans will lend you money based on the make, model and year of manufacture of
your car. The vehicle must be owned by you and be clear or nearly clear of any
finance.
Loan values typically range between £500 to £50,000 depending on the value of the car.
Logbook loans tend to appeal to people with bad credit history as there is no credit
check. Because you are offering your car as security, lenders feel
comfortable taking on customers with a poor credit rating. One of the benefits
of logbook loans is that you can usually get access to cash within 24 hours of
your application being accepted. However, log book loans should be used with caution as interest rates are high.
The other major pitfall is if you fail to repay the loan, the lender has the
right to sell your car at auction and if it does not raise enough cash, you can
be pursued for any outstanding debt. |
|
|
