Many Americans today have little to no savings. As a result, more people are living paycheck to paycheck than at any time in history. This is financially precarious, but most people without savings simply don’t have a choice. Unfortunately, these strained financial circumstances can lead to serious hardship when unexpected costs come up.
But that doesn’t mean that those without savings are completely out of luck. The short-term loan industry has cropped up over the last two decades in response to the increasing demand for loans that are able to bridge temporary cash shortfalls in personal and family budgets. With many different ways to obtain a loan, someone in dire financial straits can usually find a way to bridge a short-term gap in their finances.
Many people who have been unable to save enough money to tide them over in the event of an emergency have also been unable to establish good credit ratings. As a result, many of the people who need short-term loans the most do not have recourse to some of the better options, like no-interest credit cards or bank signature loans.
There are still many decent options that involve no credit check whatsoever. One of the fastest ways to get a loan is through a check advance service. In most cases, the requirements for getting an advance loan are that the borrower has proof of income and a checking account. With providers like BlueTrustLoans.com online, it’s possible for the borrower to fill out the application at home and have the money deposited as soon as the next business day.
This type of fast loan can be a great source of short-term funding for those who temporarily lack the funds to make ends meet. However, as with all short-term, high-interest loans, it is extremely important to follow the payment schedule closely. Short-term cash loans should only be used as a means of bridging a short-term gap in personal financing. They should never become a habitual source of funding for people’s everyday expenses.
Another form of loan that often requires no credit check is an automotive title loan. Title loans are a form of secured debt, meaning that the borrower is putting up collateral, typically their car or truck, as a means to secure what the creditor is owed. While the prospect of putting up one’s vehicle for collateral may seem off-putting, the truth is most title loan companies very rarely ever take possession of the car used to secure the debt. Because cars are generally terrible assets, constantly losing value even while sitting in storage, title loan companies will usually make every possible effort to work with the borrower to ensure that they are able to pay the loan back, without the lender being forced to possess then auction off the vehicle.
One of the more attractive aspects of car title loans is that borrowers will often be able to access amounts that are far higher than they would be with other types of quick loans. Someone with $20,000 equity in a newer car may be able to access a title loan of up to $10,000 or more.
Whether opting for a personal loan through an online lender or utilizing the value of a vehicle to access fast cash, the most important part of the process is proper repayment planning. If the potential borrower is unsure about their ability to repay the debt on time in full, they shouldn’t go forward with the application.