From time to time, we all have found ourselves at a point where we needed to access additional financial support. This might have been due to high utility or the need to replace some damaged household equipment like a refrigerator, or maybe we need to travel for a break. Regardless of the reasons, the monetary need is as real as we view it and we need money to fulfill those needs. If you are quick to learn, obtaining a small personal loan from credit unions or banks is not simple. The conventional method of lending demands an established record of payment that indicates on-time payments, otherwise, will not approve. If your credit history is limited or your credit score is low, the options for access to personal loans are limited.
Fortunately, there is an option available for people with a poor credit history or lack of credit. The buy now pays later is an option with no credit check loan. Buy now pay later offers fast and convenient access to monetary support to anyone with a regular paycheck. However, consumers must be aware of the significant disadvantages in terms of inflation of the cost associated with this form of loan to gauge your decision.
What is Buy Now Pay Later?
This form of loan is also referred to as payday loans. They are short-term and considerably small advances on your paycheck. This form of loan is only available to individuals with a steady occupation. Considering that the lenders of this type of loan are dependent on a future paycheck, they do require any credit background of the borrower. Its outcome is fast, convenient for consumers to access short-term loans to acquire or make purchases instantly and repay the loan in a future date without worrying about their credit scores.
The ease and convenience of this type of loan come with an inflated cost, consumers are normally charged an interest of 10-30% concerning regulations. However, this form of loan has been abolished in some parts to protect consumers from exploitation. Some institution offering this form of loan requires a post-dated check covering both the cost of the product and the interest accrued.
Who uses buy now pay later ?
These forms of lone are considered to be the last resort lending. However, it is commonly utilized in payment of expenses such as car repairs and medical bills including daily personal expenses. Buy now, pay later is becoming increasingly popular. This form of loan is categorized as emergency expenses and it is only suitable for cautioning against emergencies.
Despite that these loans have high-interest rates; they often serve as a valuable resource for individuals who lack good credit score or access to other forms of financial lending. Individuals with low or no credit history can easily access these loans if they show proof of employment with checking account to write a postdated security.