Second Chance Loans: Instant Cash Loans for People with Defaults

If you’ve failed to comply with the terms and conditions of a credit agreement during the last 7 years, this is recorded by all three credit reference agencies. When lenders or issuers perform a credit check, any past credit indiscretions will be quickly revealed. This typically leads to an outright decline.

Don’t give up hope as there are second chance loans with no credit check available from specialist bad credit lenders. These typically have a high rate of interest and are only available for a relatively short timeframe. They are not a long-term solution to your financial difficulties. If you have money problems, consult a credit counselor.

Payday Loan Stores are Specialist Second Chance Lenders for Bad Credit

A no credit check unsecured loan is specifically designed for people who have defaults and have been rejected elsewhere. Rather than credit scoring your application, they use a variety of different measures to underwrite your creditworthiness. These are related to identifying you and ensuring that you have the means to pay back the money you’ve borrowed 30 or 60 days from now.

Provided that you’re over 18, are a U.S. citizen and are in full-time employment, you’re guaranteed to be accepted for a payday cash advance loan. Employed people can borrow $1,000 within 24 hours. Some payday loan companies also offer second chance loans for unemployed people for up to $500. Although they’re far less common, you can identify second chance lenders who are able to offer instant cash loans when you’re jobless and claiming state benefits.

Despite the fact that second chance credit from a payday lender is a form of unsecured debt, you should never borrow money if you’re likely to find it difficult to pay back the money you owe in the future. Interest and charges will accrue quickly and debt collection agencies will pursue you for the balance. Talk to the lender directly to see if they’re prepared to help if you find yourself in a position where you cannot repay the debt.

Pawn Shops Offer Customers Second Chance Loans with No Credit Checks

If you’re in desperate need of second chance credit and have been rejected elsewhere, possibly because your currently jobless, a pawnbroker may be able to help you. A pawn shop loan is an option for customers who are able to offer collateral, such as gold, silver, jewellery, art work, watches or even art work. All that they need is sufficient equity in the collateral to pay off the balance should you default on the agreement.

Take in your item of value and they’ll professionally assess it to better understand how much it’s worth. They’ll then be prepared to offer low credit score loans for up to 50% of the items value. The reason that you can’t borrow a higher sum of money is because they need sufficient equity to cover any interest that accrues. They also like there to be additional equity available, just in case you experience difficulty repaying the debt and need to renew the agreement.

You’ll be handed your money in cash along with a receipt for the transaction. The pawnbroker will hold on to the collateral until the debt is settled on the due date. If you find yourself unable to pay off one of your second chance loans, go in early to ask them if they’re prepared to accept payment of the interest and extend the term of the agreement. Failing to clear the debt gives them the right to sell the item to recover their money.

This article was written by admin.