Fact and fiction about consumer debt relief

Is It Possible to Get a No Credit Check Personal Loan?


Many people ask the question – can you get a no credit check personal loan. The answer to that question is certainly yes. However, just because the answer is yes does not mean that you do not need to take extreme caution when taking out bad credit personal loans no credit check. In fact, while there are certain situation where these type of payday loans are necessary and good, these are also the most risky loans that someone can take out. As such, it’s extremely important to know exactly what you are getting into before you sign any paperwork or walk out with any cash.

These loans work fairly simple and straightfoward (one of the benefits of such a loan). You simply write a check to the payday loan company and walk out the door with cash in hand. There are no credit checks, no background checks. All you need is a bank account and a job and you can get money. Of course, because it is so simple and easy, it begs the question: “who would lend money to basically anyone, irregardless of credit, and how much is this going to cost me?”.

Really, the answer to both of these questions can be summed up in a few words: very high costs. That’s right, to take out a payday loan you will have to pay. On average, these loans can cost $16 or $17 per $100 borrowed just in origination fees, then if you annualized the interest rate you pay on top of the origination fees those would come out to be over 400% in many cases. So yes, these loans are very expensive and should only be used in dire circumstances. The worse thing you could do is to continually rely on payday loans to survive week to week and month to month. If you did this then you would really be taking a huge ‘pay cut’ and costing yourself thousands of dollars for short-term financing.

Posted: February 24th, 2010 under Debt Relief Programs.
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The Consequences Of Using Instant Bad Credit Loans


For people who find themselves in a tough financial situation there are many credit products on the market which promise to get you out of a fix quick. The television is full of companies who have commercials detailing the handy bad credit loans that are available to all, but they fail to tell you about the very real negative consequences of using them. You see, although payday and logbook loans might have a place in extreme emergencies, for most people they just spell added financial misery rather than the answer to your problems.

The downside of all bad credit loan products is that they charge obscenely high interest rates to make up for the fact that they can be used by anyone. The lenders try to cover themselves for the fact that many borrowers will default on their loan and still make a very large profit. This means if you make use of these you will end up paying back far more than you borrow. For someone who is already struggling this can be the straw that breaks the camel’s back.

As an example you will see that if you take out a $300 payday loan over a 14 day period you could end up paying back $367 to clear your debt, which is equal to nearly 600% APR. Imagine taking this sort of loan out during an emergency to pay for a much needed medical emergency. What state do you think your finances will be in next month when you get your paycheck and immediately have to give away $360? Most likely you will be running short again next month and be in exactly the same situation again. For this reason many people find that taking out a payday loan leads to getting into a vicious circle where they need to take out bigger loans ever month until they are overcome with a mountain of debt.

The only answer is to stay away from this type of cash advance in the first place and do whatever you can to get financial help from another source. If you don’t own your own home and still need credit with a reasonable interest rate then you might want to take a look into tenant loans which are available even to those of us with a bad credit rating and are a far safer option.

Posted: December 28th, 2009 under Debt Relief Programs.
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