If I asked you to describe the Four C’s what comes to mind? I bet you won’t be thinking about a cash advance, a credit union, credit cards or credit report. I believe that the majority of people will instantly think of diamonds. Typically, the Four Cs define the categories in which this precious stone is described: cut, color, clarity, and carat.
Are You Credit Worthy With A Cash Advance?
This blog is not about a valuable stone, but rather your creditworthiness – how a financial institution views your financial make-up.
- Capacity – What is your financial position? This is a comparison of your present and future ability to meet payment expectations. It can be easily defined by comparing your monthly income to your monthly expenses. Financial analysts use the more common terminology of debt to income ratio. New creditors will want to know if you can afford a new payment on top of everything you already owe.
- Capital – Do you have valuable assets? Building a net worth includes putting together the value of any investments you have: home value and bank accounts then subtract all the debt. Your net worth does not represent your accessible, immediate cash, but it does reflect your creditworthiness.
- Character – How have you paid your bills in the past? Your credit report is based on this information. Creditors will view this information and will make a judgment as to whether or not they will approve your credit application. Financial character is one of the most important aspects to your everyday finances. When your income does not support your expenses, your character will approve or deny money requests. Short-term loans like cash advances will not use your credit score to determine your approval status, but it will use the character of your bank account to make the decision.
- Collateral – When your other C’s fall wayside, there are secured loans that may help you financially. Title loans will use your vehicle’s equity to back a loan. If you are a homeowner, you may be able to tap into that investment as well. Capacity and character may influence a bank’s decision regarding whether or not a secured loan will be issued. Guarantors are often used to help support loan payoff.
When Creditworthiness Is A Problem, A Cash Advance Can Help
When your credit history has suffered damage and is difficult to get financial institutions to help, there are short-term money options. Use a cash advance to help with a small emergency, but be prepared to pay it off quickly. These loans are not submitted to the credit bureaus unless they go to collections and then they are loans in default. If your credit is suffering, the last thing you want to do is to hurt it more. With any third party money service used, whether your current credit is good or bad, you will want to manage the payoff successfully to prevent further damage to future finances. Your value is expressed by creditworthiness and the Four C’s – capacity, capital, character, and collateral.
What Do You Mean No Credit Bureau Check?
That’s right; most payday loan lenders do no credit bureau checks. They don’t factor in your past with how you worked your credit (or not worked). As we were noting, to get approved for a cash advance, the loan approval process goes by different items. They are most concerned with your banking information and payday loan history. Have you ever had a bank account close due to excessive overdrafts? Late payments on your payday loans? How about unpaid cash advances? Perhaps bankruptcies? There are the items that can disqualify you from getting a no credit payday loan.
Short And Maybe Simple Loan Process
If you have any questions about the criteria to acquire a safe cash advance, don’t hesitate to call the different direct lenders. They can tell you precisely what you will need to lock into some emergency cash. Many people think that they should get approved because they only need $100. Or that they will only borrow the loan for a couple of weeks. Regardless of the amount of money the customer wants to borrow, they still need to go through the process. Usually the loan application is short, but the approval might not be as simple. It all depends on your financial worthiness from your bank and payday loan history.
