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Unsecured Personal Loans Versus No Credit Check Payday Loans

by Jim ONeil on March 8, 2011

in unsecured loans

For people with bad credit, no credit check loans called payday loans and unsecured personal loans are two ways to get needed cash. Consumers should understand the difference between these loans so they can find the best deals and understand the process.
Cheap loans are good but sometimes they are not the most convenient, or even an available, option for those with very poor credit.

Payday loans often feature no credit check, making them an option for people with bad credit history. In some cases, borrowers must pay upfront fees, which are usually about £20 for each £100 borrowed. This does not initially seem like much money but it can add up when several hundred dollars are borrowed. In addition, the payday loans apr is usually higher than with the other type of loan.

With an unsecured personal loan, a borrower is usually subject to a credit check. Borrowers make a monthly payment that consists of interest and principal. The loans apr is usually higher if the credit score of the borrower is poor.

Those with extremely bad credit or a bankruptcy on their credit record may not qualify for this type of loan.

When determining what makes loans cheapest, individuals should consider the APR and any fees. In addition, consumers should determine whether the monthly payment of an unsecured personal loan is feasible, based on income.

If a payment is missed, the individual will incur late fees and potentially affect their credit record.

Regardless of whether payday loans or unsecured personal loans are taken, borrowers should have an exit strategy for paying off the money. Loans can be useful to consolidate debt but consumers should not take on additional debt while in the process of paying them.
Instead, excess cash earned should be used to pay off the loan as quickly as possible.

bener

Most legitimate lenders will do a credit check. If you have no history, it is unlikely you will get approved for a loan.

You should try family or maybe pawn something.

ering1

Thanks, A- I've had a look at their website and I suppose I'll have DH apply for a crisis loan… But I'll have to talk to the CCCS first as part of the terms of our DMP is that we not apply for any loans or credit.

This has been such a difficult time. I feel like we keep getting up and then getting kicked in the face. Over and over again. I can't even think positive anymore, or hope for anything better.

Anyway- thanks for pointing me in their direction.

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