Life happens, and you find yourself low on cash. What options do you have to make it over the hump? It depends on how big the financial emergency is, but a $500 cash advance or payday loan is just one option if you need a small amount of funds to get back on track and meet your short-term financial needs. Plus, it’s possible to get approved for a cash advance without a hard credit check, which could be music to your ears if you have little to no credit history or bad credit.
Why Most Lenders Require a Credit Check for Cash Advances
The reality is many direct lenders require a credit check before agreeing to lend you money. Your credit history and score shed light on how you’ve managed debt obligations in the past. Too many negative marks or a bad credit score means you may have had some trouble, and the chance of defaulting on a new loan is higher. In turn, most borrowers are offered high-interest rates if approved to minimize the risk posed to the lender.
Keep in mind that there are two types of credit checks – hard and soft. Most payday lenders offering cash advances will perform the latter, which has no impact on your credit score. But if they require a hard credit pull, your score will likely drop by a few points.
How Much Can You Typically Borrow with a Cash Advance?
You could be eligible for a no-credit-check loan of up to $1,000. The amount you’re approved for depends on the lender, maximum loan amounts and if you meet its eligibility criteria. Prepare to provide income documentation, like your most recent pay stubs or bank statements, to the lender so they can determine your maximum loan amount.
Is It Possible to Get a $500 Cash Advance with No Credit Check?
In short, yes. But there’s a more cost-efficient alternative worth considering. You can apply for a line of credit without impacting your credit score through the Grain financial app. Limits of up to $1,000 are available, and the amount you’re approved for is based on your cash flow.
Here’s how it works:
- Step 1: Download the Grain app on your iOS device and sign up for an account by completing the online application.
- Step 2: Sync your primary personal checking account or the bank account from which you receive income deposits and make the bulk of your purchases. Grain is compatible with more than 10,000 banks, including Bank of America, Chase, Citi and Fidelity. So, connecting your account should be fast and simple.
- Step 3: Review and accept your credit offer. As mentioned above, applying won’t hurt your credit score, so checking your approval odds is worth a shot.
It’s that simple! And you can start using your line of credit right away by requesting a withdrawal at the tap of a button. Grain will transfer the credit to your checking account in seconds, and you can continue using your debit card as you normally would to pay bills or make purchases.
You’ll only pay a 1 percent finance charge per withdrawal and 15 percent in interest on the funds you use. (The interest charge increases to 17.99 percent if you opt out of auto-pay). Still, it beats the costs that come with most cash advances with no credit checks.
Download the app on your App Store to access all the features it has to offer. The application process only takes a few minutes of your time. Even better, you’ll receive a credit offer if you’re eligible right away. Plus, Grain uses bank-level security with 256-bit encryption to keep your financial and personal information secure and out of the hands of fraudsters.
Grain is currently available to serve customers in all 50 states. Or you can join the Android Waitlist to be notified when it becomes available for download on Google Play.
Alternatives to a Cash Advance with No Credit Check
Here are some additional alternatives to get the funds you need without having to resort to an expensive cash advance with no credit check.
Friends and Family
Cash advances are generally payable in a short period of time – as soon as your next payday. If you can afford to repay the lender in just a few weeks, it’s worth asking a friend or relative for a loan with the term. The difference is you can possibly avoid paying a ton of interest, if any, on the loan amount. Be sure to get the agreement in writing and only agree to payment terms that you can abide by. It’s equally important to uphold your end of the bargain to avoid damaging the relationship.
Your nest egg is another option to get the cash you need, but you could be on the hook for an early withdrawal penalty and taxes. Furthermore, you’ll prevent the power of compounding interest from working in your favor on the funds you withdraw. So, it’s best to only consider this approach if you have a 401(k) and the plan administrator permits loans that do not require a credit check and are easily accessible and payable through automatic payroll deductions.
Secured loans are easier to access and often come with competitive terms. Even if your credit score is low, the lender may be willing to approve you for a loan since they’re backed by collateral. Also, keep in mind that you risk losing your asset if you fall behind on the payments. So, you should only consider this option if you’re confident you can afford to make timely monthly payments to the lender until the loan is paid off.
If your employer offers salary advances, this option is more viable for your finances than a no-credit-check cash advance. This is because the fees are typically lower, and you may be able to repay the amount you advance through automatic payroll deductions over time rather than through a lump-sum payment.
Third-party Payment Services
Reach out to your financial institution, whether it’s a traditional bank or credit union, to inquire about receiving a portion or all of your paycheck a few days early. Some offer this feature on select checking accounts for a small fee that’s far less than you’d pay for a no-credit-check cash advance.
Payday or Title Loan
Both payday and title loans are costly alternatives that should only be considered once you’ve exhausted all other options. They cater to desperate borrowers with past credit issues who are having trouble getting approved elsewhere. Still, borrowing costs are through the roof, making it easier to dig a deep debt hole if state law allows you to renew or roll over the loan term for a fee to buy yourself more time. Even worse, if you default on the loan agreement, your vehicle could be repossessed.