The Dangers of No Credit Check Loans
If your credit prevents you from getting a loan, it may be possible to borrow without relying on your credit history. However, you need to be careful when using no credit check loans. No credit check installment loans could cause more problems than they solve
What you should look out for when considering a No Credit Check installment loan? Check out these pointers before taking on risky debt.
- Easy approval can be bad. Although having a lenient approval process seems appealing when you don’t have he best credit, it means these lenders don’t care if you can afford to pay back the money you borrow.
- Repeat short-term lending. When you’re faced with a payment you can’t meet, lenders might offer you a second loan to help pay back the first, usually with even higher interest and more fees tacked on. This means paying back two (or more!) loans at once, leaving you in the same situation as you were before.
- Aggressive debt collection. If you default on your loan, you could have to deal with aggressive debt collectors who can automatically withdraw money from your bank account or harass you at work.
- You’ve probably heard quite a bit about payday lenders. They’re frequently in the news—and always for the wrong reasons. The Consumer Financial Protection Bureau has called payday lending “debt traps.” Short terms averaging only 14 days, high interest at nearly 400 percent, penalty fees and the high risk of rollover make payday loans a perfect storm of predatory lending practices
- Is there anything worse than a payday lender? Yes, and they’re called Auto Title Lenders. They promise quick cash loans, and the average principal amount is $940. However, the average time it takes to repay is 10 months, during which the borrower pays a shocking $2,140 in interest and fees. That’s outrageous and what makes it even more predatory is the consequence of not paying it back. These loans are called “title loans” because they require borrowers to sign over their automobile titles to the lender. If and when you can’t repay, the lender repossesses your car.
If you’re looking for a loan that’s safe and affordable, consider applying today with KwikCash.
We are the lifestyle lender that lends for any and all occasions giving you the opportunity to borrow money – no matter what situation you’re in. We whole-heartedly believe borrowers deserve a healthier alternative to payday lending