Categories: Business

Can You Borrow Money Without A Credit Score?

Do you need money for a pressing financial situation? Typically, lenders like banks and non-banking finance companies will check your credit score. This score represents your ability to repay the credit. If your credit score is low or non-existent, your application is most likely to be rejected.

But what if you urgently require money? A medical expense or a car breakdown can happen when you least expect it. This leaves no time to wait for the next paycheck or build up your credit score to qualify for a loan. Thankfully, you can still borrow in the form of cash loans, that are specifically designed for unexpected short-term needs.

Unlike traditional lenders, cash loan lenders are much more lenient with their approval process. Even if you have a low or no credit score, they won’t straight away reject your application. Their approval criteria focus more on your present financial situation. Usually, if you have a stable and regular source of income along with a positive recent repayment record, you will qualify.

The appeal of cash loans isn’t limited to its tolerant approval process. Some other benefits cash loans offer to include.

IMAGE: PEXELS

Quick Procurement

Cash loans are also known as fast cash loans and rightfully so. From application to approval and disbursal, the entire procurement process is fairly simple and fast. The terms and conditions are easy to understand and there is no extensive red tape involved. Cash loan lenders prioritize making the process convenient for borrowers.

Easy Online Procedure

For most forms of conventional loans, you’d be required to go to a bank and fill out the paperwork. But not for cash loans. Whether you are away on a business trip or at home, all you need is an internet connection to apply for a cash loan. From application to approval, the entire process takes place online. This is especially useful in a situation where you don’t have much time to spare.

Fast Approval

When you are facing an emergency, there is no time or patience for complex paperwork. A cash loan involves minimum paperwork. Cash loan lenders usually process and approve the loan within the same day.

No Collateral

Most traditional form of loans requires collateral for protection against non-payment. Since cash loans are a form of unsecured loans, you won’t be required to pledge an asset as collateral. If you are already in a difficult financial position, you wouldn’t want to put your car, house or any other asset at risk. As long as you have an affirmative recent repayment record and stable income, you can get a cash loan.

Same-Day Transfer

You cannot postpone paying a medical bill or getting your car fixed. For such situations, cash loans present the perfect solution. Just like the application and approval is prompt, lenders usually transfer the funds within the same day. In some cases, you might even receive the loan within the hour!

Don’t let your urgent situation cloud your judgment. To make an objective decision, you should consider the drawbacks of cash loans as well:

The ease of procuring a cash loan is certainly convenient, but don’t make a habit out of it. Consider a cash loan only when you are in a desperate situation and there are no other alternatives.
The application, approval, and disbursal of cash loan are quick and easy. While this is beneficial, the repayment period for cash loans is short. If you have been facing financial difficulties for some time, taking a cash loan might not be a smart decision. It can worsen your situation by putting you in a vicious debt trap.
Easy online procurement is one of the most highlighted features of cash loans. While this is favorable, it also gives leeway to imposters and scammers. Governing the cyberspace is a complex task, and negligence can subject you to cyber fraud.

Before sharing your details, check that the lender has the proper accreditations, licenses, and certifications.

Even though a high credit score isn’t required for a cash loan, failure to repay it on time will further impact your credit score.
While you aren’t jeopardizing your assets with a cash loan, there is a penalty imposed in case of failure to repay on time. This amount can build up to an expensive debt.

In conclusion, carefully consider all your options before finalizing one. Take into account fair terms and condition and accreditations while taking out any form of borrowing.

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