Getting a cash advance or a short-term loan can really help you out if you’re in a tight spot. They are a fast and convenient way to get financing when an unexpected situation arises. Most traditional loans will affect your credit rating, whether that be good or bad, will depend largely on you and your payment history.
Short-term personal loans are a form of credit you can get if you find yourself in a position without enough money to cover an expense. These are often unexpected events that weren’t planned so they create financial stress. A dental problem, a car accident, or problems with our home or property are just a few examples.
There are several different types of short-term loans that can vary depending upon the lender and the state. Most short-term loans are referred to as “subprime” borrowing, which means the borrower’s credit rating is less than perfect. These lenders usually will not use your credit score to determine whether to approve or deny financing.
Your credit score is a number that is based on your financial history. In short, it is a number that determines your creditworthiness. If you are applying for a traditional bank loan or a credit card, that company will look at your credit score.
It is based on your history with loans, debts, and your ability to pay them back. If you have a good history of paying your bills, your insurance, and any debt, then your credit score will be good.
It is based on the amount of debt you have, your payment history, any new credit you have, and how long you have had debts, been using credit, and the length of time you have had various accounts.
Usually, applying for and receiving a short-term loan will not have an adverse effect on your credit score. Most subprime lenders will not underwrite a consumer using a credit score. Again, this will depend upon the type of loan and the state, so it’s important to check with the lender.
Also keep in mind that if you need credit from another lender, they might view short-term loans negatively and put you into a higher risk category. That is up to each individual lender and will have nothing to do with your credit score.
If you do not repay your short-term loan, you will go into collections which could impact your credit score. If you pay your loan on-time, you shouldn’t have anything to worry about.
Payday loans might be a risk to a person’s credit score if they default but they can’t be used to build credit or repair damaged credit when they are paid on time. Since the credit bureaus weren’t used to finance the loan, they also won’t be notified that you paid the loan back.
The fact that someone is taking out a short-term loan often indicates that the borrower may already have a lower credit rating, so most lenders won’t do a hard check and therefore won’t report that credit to the bureaus.
Try to find a reputable and licensed lending company that offers you options. Lending Bear allows you to apply online or in-person and they offer you several different financing options.
Why not contact Lending Bear today and find the best loan for you and your particular situation. Cash when you need it, fast and friendly!