Categories
Short Term Loans

The Ultimate Guide To Short Term, No Credit Check Loans

Taking out a loan can be a very long process. It is dependent on a number of factors, including what type of loan you need, your credit history, and the institution you choose to take the loan with. But sometimes, we need a quick cash injection to give our personal or business life that little boost it needs, and we don’t want to be waiting around for the long, drawn-out process of taking out a loan and miss out on opportunities in the process. This is where a short term no credit check loans can be very helpful.

What Is A Short Term Loan?

As the name suggests, these are loans that are taken out in the short term. Normally, they are expected to be paid back within the year. These type of loans are commonly taken out by business start-ups, who don’t yet qualify for a credit line from the bank, yet need a quick cash injection to get them up and running.

Types Of Short Term Loans

There are different types of short term loans that can be used for a number of different purposes depending on your individual circumstances.

Merchant Cash Advances

This type of loan is actually a cash advance, but it works in the same way as a short term loan. You can borrow a certain amount from the lender and then make the payments back to them by allowing them access to your credit facility. A certain percentage of each business transaction you make is taken back until you pay back your loan.

Line Of Credit

This is similar to using a business credit card. A limit is set, and you can use that credit as needed. You then have to make monthly instalment payments against the amount you have borrowed, so these will vary from month to month.

Payday Loans

These loans are usually given for emergency situations and can be fairly easy to obtain. Unlike the other loans we have looked at, they generally have to be paid back in one lump sum on your next payday.

Online Loans

Once again, as the name suggests these loans are carried out online. You can access a short term loan with a number of finance providers, with everything from application to approval done online with money wired into your account instantly.

Why Take Out A Short Term Loan?

There are a number of different reasons you may want to take out a short term loan.

Consider the following scenarios:

You have just started up a new business and need an initial cash injection to hire some employees to get things up and running. You have approached a bank, but they aren’t interested in helping you as you have no credit history and are considered a risk. If you’re looking to get back on your feet, the consider a short term loan. Short term loans can provide the foundation for taking out a long term loan down the track.

You need some money to fix your car after you have been in an accident. You need that money fast, as you rely on your car every day for work. Instead of waiting for approval from the bank, you can go down the route of a short term loan, get the cash as soon as you need it and get back on the road faster.

There are also plenty of benefits that come with short term loans

Less Interest

With a short term loan, you can expect to pay less interest. Pay them off quickly as the time frame is usually shorter. This doesn’t allow time for interest to build.

Instant Money

Given the fact that there is a lot less risk for lenders when it comes to short term loans, the process is a lot shorter and you can have the money with you even faster.

Easier To Get

Credit scores don’t factor in when it comes to obtaining a short term loan, which makes these loans even easier to get. The requirements are lower, which make them a lifesaver for many businesses.

Benefits Of Short-Term No Credit Check Loans?

Firstly, credit checks take time, which is one of the reasons the loan process can be fairly drawn out. Also, if you have a bad credit history, there is also the likelihood you won’t be approved for a loan with many financial institutions. Getting short term loans with no credit check sidesteps this and allows you to get the money you need when you need it, and without the hassle.

Categories
Short Term Loans

Cash Advance With Payday Loans

Cash advance payday loans may look like a great option, but there is a downside. Your bills may be piling up, you may need to pay your car rego, fix a car, or pay for a medical bill, but you haven’t been paid yet? A payday loan seems like a simple solution.

If you are in dire need of quick cash, there are options available. One such option is cash advance with payday loans.

What are Cash advance payday loans?

Cash advance payday loans are high-cost short term loans that offer quick and convenient access to cash. If you are in need of cash to pay for upcoming bills; then a cash advance can help you get sorted fast.

Whilst some people may see payday loans as their quick fix to financial stability, there are however opposing views. Here are some of the advantages and disadvantages associated with cash advance, payday loans.  Take a good look at these and weigh if a payday loan is good or bad for your financial health.

Advantages of cash advance payday loans

  • Fast approval
  • Loans are available even for a high-risk borrower
  • Pay for emergency situations fast. Did your car break down? Is there an emergency field trip in your child’s school? Or, are you taking advantage of the big discount on equipment for your business? Use it any way you like it, cash advance payday loans can save the day.

As long as you can assure the lender that you can repay, you can get the money you need fast and you don’t have to worry about receiving notices that your utilities will be cut off because you missed the payment.

Disadvantages of payday loans

Payday loans usually come with very high-interest rates. These rates can come in the form of a flat fee or a certain percentage of the cash advance payday loans. For example, a cash advance lender may charge 20% per $100 borrowed. This means that the borrower has to pay $20 in interest on a monthly basis. If you missed a payment on the first month, the interest will accumulate and you’ll be paying more than your original debt as the time goes on and the debt remains unpaid. 20% may not be a big deal if you will pay it outright when you receive your pay for the month. But, if you took a loan 7 days before your payday, you will be paying a large fee for a 7-day loan.

If you’re borrowing against your salary, where will you get money to pay for your expenses before the next payday? It can lead to another debt until you can’t get out of it anymore.

Is cash advance loan a good idea?

A person has too much debt when he owes more than what he can afford to pay, simply because his income is lower than his debt, and his liabilities are greater than his assets. If you’re struggling with debt, another debt can either help you get out of it, or drag you deeper into debt. It is a choice you have to make, especially in the way you will use your money.

Better alternative to payday loans

When you need money for emergency use, you can turn to Australian Lending Centre for short term loans, which are a safer solution than payday loans. Whether you are going to use the money for business or personal matters, short term loans are easy and quick solutions that you can count on. You can get approved in a few hours and get the money faster than banks do.

Pay for personal or business expenses, invest and grow your money, by using Australian Lending Centre short term loans. It is a better option than cash advance payday loans. Contact the experts of Australian Lending Centre today.

Categories
Personal Loans

The Best Bad Credit Loans – Personal Loans Vs Payday Loans

Personal loans vs Payday Loans – which are the best when you have poor credit? Find out the best option when you’re in need of cash. This article is the ultimate personal loans vs payday loans standoff.

What Are Payday Loans?

You have heard of post-dated check loans, cash advance loans and payday loans. They all mean the same. You apply for a loan secured by your bank account debit authorisation or check and receive the money into your bank account. It is appealing to borrowers with poor credit because lenders don’t check your credit rating in determining the amount that you can borrow. However, it measures your ability to borrow based on specific criteria which may include your income, assets and other personal circumstances.

However, a payday loan has its own disadvantages.

Why Are Payday loans are costly?

Unlike personal loans with a minimal interest rate in defined periods, the payday loan fees may range from 15% annual percentage rate to almost 400%.

If you needed money and you decided to borrow $300, you may have to pay a finance fee of $40 to get it. Your total loan is $340, but you will only receive $300. If the loan period is 14 days, you will have to pay $340 when the period ends. But, if you missed your payment, you have to pay additional fees.

Here’s another example. On January 1, Joe took out a $100 with $20 interest loan for 30 days. He failed to pay at the end of the period but decided to pay after another 30 days. This time, he has to pay the original loan of $120 ($100 plus $20 interest) plus $24 interest of the original loan.

But, why do many Australians take out payday loans? Despite the fact that Personal loans for poor credit, not payday loans are affordable loan options, many Australians still use payday loans because of lack of access to credit cards. Some borrowers have no credit and others have credit problems. With strict banking regulations, it is almost impossible for someone with zero credit history and a low credit rating to obtain financing. That’s why many people use payday loans for poor credit.

Payday Loan Debt Multiplies Fast

In comparison, with a reasonable interest rate, personal loans from Australian Lending Centre are easy to repay. There are no hidden costs to be afraid of. But, this is not the case in payday loans. If you don’t like to pay up to ten times the payday loan amount, you have two options–pay your payday loan as soon as possible, or don’t get one.

Payday loans can easily quadruple even if you didn’t mean to. If you cannot repay a payday loan as soon as you can, there is a big chance that you will get into trouble with these types of loans. The lenders will charge you expensive additional fees for not repaying the loans at the end of the period.

It is easy to get, but difficult to pay

When you leave your debt unpaid for several periods, you may wake up one day owing more than you are able to repay. Not only is it an unpleasant experience, but it is also damaging to your credit as well.

Some payday lenders also have terrible debt collection policies like harassment, threats of litigation and other forms of provocation.

Categories
No Credit Check Loans

What You Ought To Know About Direct Lender Payday Loans No Credit Check

Understand what lenders look for in a borrower and how direct lender payday loans no credit check can save the day when you don’t meet these requirements.

Lenders’ criteria

If you want to get a better chance at getting a favorable loan from conventional banks, here are some areas that you need to improve:

Credit history

If you want to qualify for the different types of credit available in the market, keep track of your credit record, manage your credit well and always pay on time. You can check your credit report to see if there is inconsistent information in your credit history and to avoid similar situations. Your credit report contains the types of credits lender extend to you, plus their names and other relevant information. So make sure that your payment history is correct and that you will improve it next time.

Your credit score also matters. So, try to make better borrowing decisions to increase your score.

Capacity to pay

Can you pay your loans comfortably? Lenders would assess your capacity to pay the loan plus all your other outstanding debts, based on your income. They would gauge its stability, type and the income to debt ratio. If your monthly bills are higher than your net income, how can you pay it back?

Collateral

If you are applying for a secured loan, lenders would look into the value of your collateral. While there are many lenders offering unsecured loans, those who want lower interests and faster loan approval opt for secured loans. These include home equity loans and refinancing an auto loan. Lenders look into the assets you pledge as collateral and ensure that they are uncompromised and that their value will suffice to cover for your unpaid obligations in case of default.

Capital

How much do you have to pay back the loan? Aside from your household income, lenders also check out your assets, savings, and investments to ensure that you can still repay the loan in case of job loss and other financially draining life events.

Conditions

While some lenders won’t ask you where you want to spend your money, other lenders may want to know how you plan to use it. What is the purpose of your loan? Are there surrounding financial conditions that can affect your ability to repay it?  Each lender has its own eligibility criteria. So, before you sign up for a loan, make sure that you have already discussed the loan terms with the loan officer.

I didn’t meet the lender’s criteria. What’s my best option?

As discussed above, banks and contemporary financing companies check your credit rating, payment history and income to determine of you are eligible for the loan. So, if you have zero to low credit score, it can be very tough to obtain just about any type of loan.

One of the options is to go to a lending institution that does not do a credit check before granting you a loan. With a no credit check loan you can borrow money when you could not normally do so due to a poor credit score and history. No credit check loans are usually unsecured and they are made for a moderately small amount of money.

Who qualifies for direct lender payday loans no credit check

Almost anyone who’s of legal age and has a regular income of any sort can qualify for direct lender payday loans with no credit check. The loans are specifically designed to provide financial support to employees and entrepreneurs who cannot obtain funding form conventional financing companies.

Contact Australian Lending Center to learn more about direct lender payday loans no credit checks.

Categories
Short Term Loans

Ads for Short Term Loans Banned on Google

According to recent settlements, Google have banned ads for Short Term Loans. The decision was triggered by the concern that these ads have a specific predatory nature. On that account, it has been established that the search engine will ban ads featuring loans for which the repayment is required within 60 days after the date of issue. But what is it that makes these loans far from the ideal choice for the Australian borrower?

The truth about short term loans

These short term loans stand under the question mark as they come with significant amounts of interest and are causing people to sink much deeper into debt. Consumer Action Law Centre has gladly received this establishment. However, there has been a range of inquiries regarding the way in which the mechanism will function.

For starters, Google has included an additional ban in the US for loans that are linked to an annualised percent that surpasses 36. However, after having agreed on that for the US the same mechanism was suggested to Jason Pellegrino, CEO of Google Australia. According to his affirmation, the same initiative that firstly emerged in the US will be extended to Australia as well, meaning that short term loans that have an annualised interest percent over 48. That initiative is expected to balance payday loans with the financial products from our country.

As made official by Google, this ban has come into force on the 13th of June, which has been the first time Google has taken the initiative by announcing a global ban for a broad range of financial products.

These short term loans, in line with the research conducted in this direction, indicate that, in most situations, they result in high default rates and unaffordable payment for users. The primary purpose is to protect each user from deceptive financial products and offers. Without fear of contradiction, this move won’t affect reliable and reputable banks and non bank lenders, such as the Australian Lending Centre, which provides a great variety of bad credit loans, debt consolidation loans, car loans, and etcetera.

The main reason people are lured into taking up payday loans is that they are presented to them in an attractive manner, similar to a quick, efficient fix to a complicated problem. As many people who are trying to make ends meet will assume that such a loan will put an end to their problems, they somehow fail to acknowledge that these loans are linked to high fees and charges, which will further get one in a vicious cycle of debt he/she cannot escape.

That’s why we recommend people who are in a difficult financial situation to steer clear of these payday loans, and opt for the guidance of a professional financial counsellor.