Credit Cash Advances / No Credit Check Cash Advances
Many cash advance customers prefer that companies don't perform credit
checks when authorizing a cash advance
loan, but what does this mean for you as a customer? Does not getting
a credit check hurt your chances of getting a cash advance or does it
help them? What about customers with no credit? This article describes
the influence that credit and credit scores have on any customer's ability
to receive a cash advance.
Credit Checks and Cash Advances
Very few cash advance companies
employ the use of credit checks before issuing a cash advance. The primary
reason for this is because it costs a lot and that cost would have to
be passed on to the consumer. People that apply for cash advances are
already strapped for cash, so something like a $5 or $10 dollar increase
in either total price or price per hundred borrowed will make a huge
difference to them; as a result, they might be disinclined to accept
the offer of a company that runs credit checks and more inclined to
accept the cheaper offers presented by the company's competition.
What about people with no credit?
The advantages to a customer with no credit of choosing a cash
advance company that does not run credit checks is huge, if for
no other reason than the fact that the company will never know if the
person submitting the cash advance
application had bad credit, good credit, or otherwise. A common
misconception is that cash advances may actually improve a person's
credit rating; in other words, that a person with no credit could frequently
request an online cash advance
and pay them back on time and, in doing so, establish a credit history.
This is not the case, since cash advance lenders do not report to the
various credit bureaus unless a customer has defaulted on a payment.
As you can see, choosing cash advances
has both benefits and consequences if you have bad or no credit - it
increases your eligibility to actually receive a cash advance, but at
the same time it will not benefit you in terms of establishing credit
history that shows your ability to pay loans back on time.
The effects of credit checks on your credit reports
Every time you apply for a credit card or loan (with few exceptions
such as cash advances) it gets noted on your credit report. Issuing
banks like to know how often you're applying for new credit, credit
increases, or even credit extensions so they can better understand your
current financial situation. This is why it's incredibly important to
limit the number of things you apply for, since it could be interpreted
as a desperate search for credit and could mean that you have a diminished
ability to repay the loan. Creditors will opt not to take a chance in
most cases, so it's in your best interest to research your options completely
rather than apply for credit all over the place.
Since credit bureaus and cash advance
lenders / the cash advance
industry don't really exchange information with the regularity that
other credit-issuing companies do, this means you're free to apply for
a number of online cash advances
as often as you want. Keep in mind that the industry itself has a system
that tracks the number of cash advances
you apply for, so even though completing a number of cash advance applications
won't impact your ability to secure other sources of credit in the future,
it will limit the number of cash advances you will be eligible for in