LoanNow: Better Cash Loans
When most people think of cash loans, they automatically assume that the lending agency is a bank. Today, banks represent only one of several options for cash loans. But For people with marginal credit and few assets, the available choices for a cash lender are mostly bad.
In fact, where cash loans for bad credit are concerned, many people only consider two choices: pawn shops and payday loans. But many borrowers with what appears to be bad credit actually qualify for a much better third option: an installment loan from LoanNow. In fact, a big part of LoanNow’s mission is to help borrowers that banks and credit unions turn down by creating a financial option for cash loans that allows them to avoid the hazards and pitfalls of pawn shops and payday loans
If you need 20 dollars for gas or groceries, friends and family members are a logical choice for cash loans. Many parents also provide their grown children with generous loans for mortgage down payments or other transactions. But unpaid loans can strain personal relationships to the breaking point.
If you’re lucky enough to have friends and family members with deep pockets, you may be able to obtain larger cash loans at little or no interest and with few questions asked. But borrowing from people closest to you often carries a high price in the form of strained relationships, especially if you have trouble paying the money back.
Credit Card Cash Advances Could Cost You
For some individuals, it may be possible to use plastic to pay for some transactions. But some merchants or service providers don’t accept checks or credit cards. They only take cash, and you have none. For individuals with sufficient credit available on their credit cards, cash loans may be as close as the ATM on the corner. But credit card cash advances typically carry higher interest rates than purchases, meaning that convenience will cost you.
In addition, credit card cash advances begin to incur interest immediately – there are no grace periods. If you carry balances on your credit cards and typically make only the minimum monthly payment, you may pay many times more than the actual cash advance before you’re finally able to pay it off.
Pawn Shops Can Be Risky
Cash loans for bad credit from pawn shops typically appeal to people for two reasons: speed and no credit checks. Pawn shops provide cash fast with no questions asked, if you are willing to part with valuable merchandise, either temporarily for a loan, or permanently as a sale. But pawn shops are only interested in certain types of items. That gorgeous diamond and sapphire broach your Aunt Mildred gave you for your 21st birthday? Check. Your grandfather’s gold watch? Check. High end, current electronics? Absolutely. That obsolete flip phone you got back when Razrs were the hot new gadget? Not so much.
Pawn shops typically only lend a fraction of what your property is worth – usually around 25% of the actual value. They also only allow about 30 to 60 days to repay the loan in full, with interest. Failure to repay means that you forfeit your property for good, and you can kiss that family heirloom goodbye – permanently.
Beware of Payday Loans
If you have damaged credit and no collateral, you may think payday loans represent your only option for cash loans, especially if you need money fast.
Payday lenders seldom conduct conventional credit checks on potential borrowers and don’t demand collateral. In fact, payday loans are often targeted specifically toward borrowers with limited incomes, few or no assets and marginal credit, but who are employed or have some other steady form of income.
Payday loans get their name from the fact that their repayment periods are scheduled to coincide with the next paycheck anticipated by the borrower. For borrowers who are paid every week, the deadline for repaying the full amount due could be as soon as a week or 10 days after the loan has been disbursed.
If that sounds like it would be tough to manage, that’s because it is. In fact, a majority of borrowers are unable to repay their loans in full, which sets off a cycle of partial repayments, rollovers and additional fees. Rinse and repeat just a few times and you could be looking at a loan that is way bigger than the one you originally borrowed – even though you’ve been making payments all along!
Can Online Loan Brokers Lend Me Money?
You may have seen or heard ads for lenders boasting that their borrowers have lenders competing for their business. Online loan brokers are not actually cash lenders. Instead, they act as intermediaries between borrowers and a select group of lenders. Borrowers submit their information to the broker, which distributes it to its lenders. Borrowers with excellent credit frequently receive multiple loan offers with favorable lending terms. However, borrowers with marginal or poor credit may receive only one offer or none at all.
Banks and Credit Unions Work for Some
Banks and credit unions represent the most traditional sources for commercial cash loans. For example, for many prospective homeowners, banks are naturally the first choice for cash lenders. That’s because banks generally offer lower interest rates and manageable monthly installment payments, making bank loans ideal for financing big ticket items, especially for borrowers with good credit.
However, if you need money immediately, or if your credit is less than perfect, bank loans are not a viable alternative; banks require borrowers to have good credit to qualify for the best lending rates. Borrowers with marginal credit must pay higher interest rates. In some cases they may also be required to provide collateral, a credit-worthy co-signer or both as a condition for being approved. Borrowers with bad credit are often denied outright. \ Finance companies also make you wait weeks while charging higher interest rates than banks and credit unions – but at least they usually don’t require collateral.
Peer-to-Peer Lenders Are Also Great if You Have Great Credit
Peer-to-peer lending programs allow individuals from the general public to act as cash lenders because of the fact that they have adapted a crowd sourcing approach to cash loans. After passing an initial credit screening, prospective borrowers must post profiles including extensive personal and financial information. Prospective lenders have the option to fund some, all or none of a particular borrower’s request.
Many borrowers find the process of posting sensitive personal and financial information on a semi-public forum to be intrusive. In addition, many peer-to-peer lenders require borrowers to have FICO scores in the mid-600 range to qualify, which eliminates borrowers with bad credit altogether. Borrowers only receive funds when their requests are fully funded by donors, which can be a lengthy process. There is also no guarantee that requests will be funded at all.
LoanNow understands that when you’re dealing with a financial emergency, you need cash fast. Our online application generates a response within minutes† – not weeks. You may qualify for a loan even if your credit isn’t perfect. Like a good friend, LoanNow looks beyond your FICO score to evaluate your entire financial situation. We approve many borrowers that traditional banks turn down. If you’re approved, your funds will arrive by direct deposit into your bank account as soon as the next business day.
Unlike pawn shops, LoanNow does not demand collateral as a condition of providing cash loans. Unlike payday lenders, LoanNow provides loans with repayment periods similar to those for banks and credit unions. And LoanNow says no to rollovers and early repayment penalties that can jack up the overall cost of a loan. Unlike cash lenders that act as intermediaries, LoanNow is a direct lender. At LoanNow, we don’t subject borrowers to semi-public scrutiny, and we don’t share your information with third parties. For savvy borrowers, LoanNow provides an alternative to the payday loan trap. Let LoanNow provide the cash you need today!