LoanNow: a Better Source for Loans
With instant loans, no credit check is a definite advantage. And when seeking instant loans online, no credit check can be an appealing claim. But the truth behind such claims is much less attractive. For many lenders offering instant personal loans, no credit check is a misleading claim; for others, there can be other undesirable requirements that take the place of a credit check.
At LoanNow, we don’t make such lofty claims. Instead, we offer personal loans through a convenient online application system that allows us to approve many potential borrowers that banks turn down.
Borrowers Have a Choice in Personal Loans
For borrowers seeking instant personal loans from banks or non-bank lenders, no credit check is not a realistic option. Banks represent the most conventional source of personal loans. But banks require stringent credit checks for borrowers, and the application process is often lengthy. Peer-to-peer lenders often accept prospective borrowers with fair or average credit, but require exhaustive personal and financial disclosure from borrowers, presented as profiles to a semi-public audience. Peer to peer lending can also involve a lengthy application process.
Credit Card Cash Advances Are Convenient, but Costly
With credit card cash advance instant personal loans, no credit check is one of the main advantages; getting money on the spot is another. But credit card cash advances carry much higher interest rates and APRs than purchases made with credit cards. Many credit card companies also do not allow grace periods for cash advances, which means that interest starts adding up the minute you receive your cash from the ATM. If you don’t pay off your credit card balances every month, interest charges applied to credit card cash advances can make a real dent in your overall credit limit, reducing the amount of funds available for purchases.
Pawn Shops Demand Collateral, Not Credit Checks
For pawn shop instant personal loans, no credit check is a given. Pawn shop proprietors don’t care about your FICO score: instead, they demand borrowers to surrender their personal property as collateral. In addition, pawn shop loans only cover a fraction of the value of the property that borrowers surrender. Finally, if borrowers fail to repay their loans within the specified period, often 30 to 60 days, they lose their property permanently.
Payday Loan Stores Provide Instant Loans – But at What Cost?
One type of valid lender who makes a claim of instant payday loans with no credit check is a payday loan store. Brick-and-mortar payday loan stores provide cash on the spot to approved borrowers – and they don’t run conventional credit checks. Instead, they check your employment and your banking information. If that’s in order, and you don’t have a record of having defaulted on other payday loans, you’re usually approved.
Brick-and-mortar payday loan stores have another important advantage: there’s a contact point if you have a problem. On the other hand, payday loan stores operate under specified hours that might not correspond to when you’re normally available. There’s also the potential embarrassment factor of having someone you know see you enter or leave a payday loan store.
But the real hazard of payday loans occurs when it’s time to repay. That’s because payday loans live up to their name – their repayment periods are matched to your next upcoming paycheck or expected government payment. If you’re paid every week you could potentially be expected to repay your loan, in full, in just a few days!
If that doesn’t seem feasible, that’s because it isn’t. A majority of borrowers are forced into making partial payments and accepting “rollovers”. But it is important to note that a rollover is essentially just a new loan with a fresh set of interest charges and administrative fees that can result in the amount you owe getting larger, not smaller, despite regular payments by borrowers. Ouch.
What’s the Catch with Instant Online Payday Lenders?
You may have seen websites touting instant payday loans no credit check – everyone accepted! In many cases, such websites are not advertising payday lenders, but intermediaries that collect borrower information and distribute it to third parties. In some instances, those third parties are specific online lenders that work directly with the online aggregator. But other less scrupulous operators simply auction off sensitive personal and financial information to the highest bidder. Borrowers who submit their information to such websites expose themselves to a range of risky content, ranging from loan “offers” from entities they’ve never heard of to potential identity theft.
Even when you manage to find a direct online payday lender, you’re still not in the clear. Many online payday lenders are based out of state or even out of the country, making it difficult if not impossible to resolve problems with loans. In some cases, online payday lenders do not include any direct contact information on their websites, which should present definite red flags to potential borrowers. Unscrupulous online payday lenders may make repeated Automated Clearing House (ACH) withdrawal attempts from borrowers’ bank accounts even when it’s obvious there are no funds available — triggering multiple overdraft fees. In extreme cases, borrowers may be forced to close their bank accounts.
LoanNow: a Better Alternative
LoanNow doesn’t make claims about too-good-to-be-true “instant loans online with no credit check”. Instead, we consider your overall financial profile rather than focusing on FICO scores alone. LoanNow also allows you to apply online in the privacy of your own home and receive your money as a convenient electronic deposit to your checking account usually by the following day.
LoanNow is a direct lender; we don’t share your sensitive personal information with third parties. If you have questions, our friendly, responsive customer service reps are available by phone or email to assist you through every step of the process, from application to repayment. And our repayments are scheduled as manageable monthly installments, just like bank loans.
If this sounds good to you, what are you waiting for? Check out the LoanNow alternative for personal loans today!