ArticlesBase.com - Free Articles Directory
Free Online Articles Directory
07.10.2008 Sign In Register Hello Guest
Email:
Password:
Remember Me 
forgot your password?


Beware the Lure of No Credit Check Loans

Author: James Copper Author Ranking Gold | Posted: 04-07-2008 | Comments: 0 | Views: 12 | Rating:  (83) Article Popularity - Blue (?) Got a Question? Ask.
Sign Up Now!

Perhaps you always thought that it could never happen to you, but before you knew it the front two tires of your car gave out and you still had five days to go until payday. You need your car to get to work and to pick up the kids from school, and since your credit card is maxed out and you have no money in savings, you need some cash fast. Sounds familiar? This scenario happens day in and day out at a myriad of households all over the United States. While many have the luxury of putting two new tires on a credit card and then repaying the card when the paycheck comes in five days later, others do not have that option and suddenly the no credit check loans advertised on daytime and late night television look attractive.

You have probably seen the ads that talk about getting money wired into your account fast, with no credit check, no hassle, and no documentation needed. Payday loans which are another term for no credit check loans are intended to tide over those who are a few hundred dollars short in between paydays. The advertised theory behind the practice stipulates that a consumer may have a sudden emergency for which she or he did not budget. To meet the financial demand, the consumer can borrow against her or his next paycheck simply by applying for one of the no credit check loans, and within hours the money is in the account. To repay the loan, the consumer will write a postdated check which will be kept in the office of the payday loan agent. Once the payday comes around, the agent will deposit the check, the loan is paid, and all things being equal there is no problem.

Unfortunately, the reality of the matter is somewhat different. Given the outlandish fees charged on the no credit check loans, you will have to pay about $25 for every $100 you borrow. Thus, a loan in the amount of $500 could cost you as much as $125 in fees, which means that five days later you will have to foot the bill for $625. This is a lot of money in fees and interest. Furthermore, since beggars cannot be choosers, the agencies writing up the no credit check loans will usually have many repeat customers not because the service is so good or the rates are reasonable, but because the loans cannot be repaid when the payday rolls around and thus the consumer will have to refinance the $500 loan in addition to paying the $125 in fees. Thus, when the next payday comes due, the consumer will once again have to pay $625 this now totals $250 in fees on a $500 loan which may have only been in existence for about three eeks.

However, there are times when these loans are the only alternative you have. They do help keep your credit in line and will help you avoid late fees as well.

Rate this Article: Current: 0 / 5 stars - 0 vote(s).

Article Tags: No Credit Check Loans

Article Source: http://www.articlesbase.com/finance-articles/beware-the-lure-of-no-credit-check-loans-472218.html

Print this Article Print article   Email to a Friend Send to friend   Publish this Article on your Website Publish this Article   Send Author Feedback Author feedback  
About the Author:

James Copper is a writer for http://www.any-loans.co.uk/no-credit-check-loans.shtml where you can find no credit check loans

Submitting articles has become one of the most popular means of generating quality backlinks and targeted traffic to your website. Join us today - It's Free!

Article Comments

Comment on this article Comment on this article
Your Name
Your Email:
Comment Body
Enter Validation Code: Captcha


Got a Question? Ask.

Ask the community a question about this article:

Q&A Powered by:
Powered by Yedda 

Latest Finance Articles

Understanding Debt Consolidation Loans
By: Richard Greenwood | 07/10/2008
It can be all too easy to end up in debt and especially during the current times of financial uncertainty you may find yourself unable to make repayments. Consolidating your debt can make your debts easier to manage and lower your interest charges meaning you become debt free faster.

Credit Card Comparison
By: Richard Greenwood | 07/10/2008
Credit card offers are everywhere and all claim to out do each other. How do you cut through the marketing talk and understand the key features you need to compare to make an informed decision. Find out with this informative article on credit card comparison.

Shopping For Auto Insurance
By: Brenda Williams | 07/10/2008
When you get your license for the first time before you begin driving you need to get car insurance as it's mandatory to have car insurance while driving. Car insurance can be rather expensive, especially for new drivers which is why you'll need to ensure that you're getting the best...

Taking 100% Responsibility - the Prerequisite for Creating Money & Marriage Success
By: Leslie Cunningham | 07/10/2008
It's a simple concept, to refrain from blaming and complaining, and yet it's a challenge to change a habit, especially one that everyone else has. Like sticking to your diet, when everyone else around you is enjoying chocolate cake. Keep reading and you'll find out how this relates to your marriage and finances. Then I'll share some action steps to help you become 100% responsible for your life.

Retirement Income Investing and Your Portfolio
By: Steve Selengut | 07/10/2008
Brokerage firm monthly statements are designed to promote either fear or greed, depending on the current market environment. Nowhere on your statement can you find numbers that report your net investment, your total working capital, or your true asset allocation. Current and projected income numbers are given little attention

Buy to Let Investors Get a Boost
By: Parmdeep Vadesha | 06/10/2008
Buy to let UK investors are in a prime position to take advantage of a new government plan to spur property market activity. The scheme aims to permit property buyers to buy properties worth up to

How to Buy a Repossessed Property for Below Market Value
By: Parmdeep Vadesha | 06/10/2008
Buying a repossessed property is what matters for investors who are keen on reaping high profits. But even with the advantages it poses, there are certain aspects you need to be aware of before you start on the task of acquiring your next property cheaply.

Brits Should Ensure They Have the Cheapest Energy Supplier
By: Abbi Rouse | 06/10/2008
With energy prices escalating steadily, consumers could knock considerable amounts off their utility bills by switching from their areas default supplier.

More from James Copper

The Importance Of Advertising Costs
By: James Copper | 24/09/2008 | Marketing
An article giving useful information into the pricing of adverts.

MCSA Courses: Will They Further Your Career?
By: James Copper | 24/09/2008 | Careers
An article informing you on Microsoft Certified System Administrator courses.

Marketing Ideas That You Must See
By: James Copper | 24/09/2008 | Marketing
An article giving some very useful tips on promoting your business.

Is It Time You Started Some IT Training?
By: James Copper | 24/09/2008 | Careers
With computers leading the way with jobs should you start a course in 'information technology'

CIW Courses: Are They Worth It?
By: James Copper | 24/09/2008 | Careers
An article having a look into certified internet webmaster courses.

Electrical Training - What You Should Know
By: James Copper | 05/09/2008 | Careers
This article provides useful information on becoming an electrician

Why Not Start A Plumber Training Course?
By: James Copper | 05/09/2008 | Careers
An informative article on how you could become a plumber

Plumber Training - The Basic Need Of Perfect Plumbing
By: James Copper | 28/08/2008 | Careers
A helpful article that will inform you on how to become a plumber

Article Categories






Give Feedback

Sign up for our email newsletter

Receive updates, enter your email below