In most scenarios, quick loans can cover unexpected bills when you have no cash on you. Obtaining a loan in Singapore is often a tedious process that involves going through your credit profile. As such, when you require quick cash, you often need it as quickly as possible.
Most people, especially low-income earners, may not have good credit profiles as they might opt for quick loans over traditional loans. With fast cash loans, it will not affect your credit profile overall. However, it is best to note that these loans come with high-interest rates and short payment periods.
Here’s what you need to know about quick cash loans.
Types of Quick Cash Loans
There are two types of quick cash loans that do not require credit check: pawnshop loans and payday loans. It is best to understand what they are and how they can help you before acquiring them. Pawnshop quick loans, for instance, is to surrender personal property as collateral before obtaining the loan.
Furthermore, the lender only grants a fraction of the value of the property surrendered. Should a default of the loan be in place, it means you will lose the property surrendered. You should only take this loan if you are sure about your payment timeline, and whether you can pay them back.
Payday Quick Loan
Another quick loan is the payday check loan. With this type of loan, the payment is expected as soon as you receive your next paycheck. In the case that you fail to complete the loan upon receiving your paycheck, the credit will be rolled over to your next paycheck with additional cash on it.
Quick cash loans in Singapore charges high-interest rates. This is because the payment period is relatively low. While we may want to point the finger at Singapore ready loan lenders, they can be taking a considerable risk unknowingly. The fact that you have run out of cash now means that you may still run out of money in the future. This is in addition to the fact that there is less documentation in place, which can amount to less accountability. A credit score is supposed to tell the borrower’s history, and most quick cash borrowers have poor credit history in the first place.
Quick Cash Loans and Loan History
Most quick cash lenders do not look at the credit history of their borrowers. Such loans are approved even when the borrower has a bad payment history with other lenders. Therefore, credit checks do not apply for most fast approval loans in Singapore. Most quick cash loan lenders in Singapore give discounts in terms of reduced interest for regular borrowers.
Most lenders in Singapore can offer quick cash loans without checking the individual’s credit history under the following conditions.
- High daily interest rates
- The loan term is no longer than one month
- The loan amount less than $500
- The loan is transferred to the electronic wallet
While consolidated loans are of higher benefits and come with less pressure, quick loans are comparatively much easier to apply for. You can almost get the money as soon as the application is made. The money received will mostly be unsecured. However, borrowers will pay substantial interest rates when compared to traditional bank loans. Such loans are much more convenient for emergencies or fixing unexpected expenses. They are advantageous, especially for small earning borrowers. Even though a credit check is not a necessity in quick cash loans, you still have to pay a considerable price for it.