Fast cash advance applications come in handy when credit scores are not up to par. Many people know or at least have an educated guess as to the general health of their credit worthiness. When creditors no longer want to increase limits or provide new accounts, the short-term loan industry becomes more attractive.
Because cash advance loans do not monitor credit reports for approval status, someone with poor credit will have an easier time qualifying for fast cash. The short-term loans are not looking for the same qualifications as creditors. The direct lender is looking for proof of income and a well-managed bank account while a creditor is focused on creditworthiness.
- Your credit history shows your track record for on-time payments. It will show when you were late and how many days late you were. The direct lender is not focused on past payments but rather the current status. Because these short-term loan payments will have a quick payoff, they want to know if there are overdrafts which have recently occurred. Current bank statements say a lot about how money is being handled now.
- Creditors look at your credit utilization score which defines how much you owe and what your potential of owing may be. Even though you don’t use some cards, the credit limit on them is still figured into your score. Direct lenders will want to make sure you do not have a history of defaulting on short-term loans.
- How long is your established credit? Helps creditors determine creditworthiness. Someone well-practiced shows promise.
- Have there been many other creditors that made hard inquiries? Multiple inquiries will portray the applicant is hard up for cash. It’s not a good sign as far as a creditor sees it. Direct cash advance lenders do not want to see multiple short-term loans on the bank statement. Some lenders will still approve money if a person shows two other current loans while other lenders will limit it to one.
A fast cash advance payoff will keep your loan off your credit.
Your credit score represents many aspects of your money management. How many different types of accounts do you have open? Are there both revolving and installment accounts? Fast cash advance loan lenders only look for other short-term loans which remain unpaid.
When it comes to your credit, the better you protect it now, the more it will work for you later. Will you be looking to get a new car loan or buy a home? It isn’t just about instant credit. You need to keep payments on-time and limit credit card use. If you do need to use your credit cards, don’t. Keep in mind that if you carry a balance more than 20%-30% of your limit, the debt will do more damage than good. A direct lender will not report short-term loans to the credit bureaus. Since the loans are meant to be paid off in two weeks, there is no cause for this type of action. One clear way which your short-term debt will find its way onto your credit history is when the loan goes into default and sold to a collector. The direct cash advance balance will then be reported as a strong negative on your credit history.
