Safe Credit: How To Avoid Loan Sharks

Short term cash loans are payday loans that are designed into different plans for every individual’s unique cash needs. Two of the most popular short term cash loans are cash advance loans online and payday loans with no credit check. Each has the same requirements, although the process varies a little bit. The online cash advancement is done online – from the application up to approval.

The payday loans with no credit check on the other hand is for individuals who have poor credit rating. Banks require applicants to have good credit score to be granted with cash loans. But with short term cash loans, he can borrow up to $1,500, depending on his pay scale, without necessarily checking his credit history.

Many individuals love the cash advance loans online because it’s the most convenient process for loan application. People love convenience – they love things be done just by a few taps and clicks of their computer mouse. Payday loans are good for emergency purposes – those expenses that could no longer wait for the next payday.

But, certain precautionary measures should be taken when borrowing short term loans because this is exactly where loan sharks come disguising as the “solution” to monetary needs. Loan sharks use the same loan formats to lure people into the debt-cycle. At first, they offer large amount of money for loan, tempting borrowers to borrow more for their needs. Like other licensed lenders, loan sharks also use cash advance loans online and payday loans with no credit check so many borrowers actually confused them with legit lenders.

With the large sum of money that can be borrowed, borrowers need to pay 5% of the principal amount as the interest charge. People agree with the interest rate because they think they have no choice. Most of these borrowers who get lured to take the offer of the loan sharks are those with emergency cash needs but don’t have all necessary documents to support their bank loan application. Loan sharks are scary. They threat the borrowers when the latter becomes delinquent in repaying their loans and additional charges are added to the already high interest rates. To avoid loan sharks, it will be good for borrowers to check the person or the company offering loans if they are listed under Better Business Bureau (BBB).

Applying for short term cash loans is easy given that there are already different types of fast cash loans that you can apply for. Or, if you are worrying not having a good credit rating, you may apply for payday loans with no credit check.