Check cashing services are plentiful throughout many cities all over the United States. In fact, it is estimated that there are around 11,000 check cashing businesses throughout the U.S. that cash over 180 million checks annually. If you are the type of person who lives paycheck-to-paycheck or you do not have a traditional bank account, there are a few reasons why these numerous financial service centers are a benefit to you.
Immediate Access to Small Funding
As of 2013, approximately 75% of Americans were living paycheck-to-paycheck. If you are among that 75%, you likely struggle to keep up with daily expenses or perhaps you have issues covering unexpected expenses. Fortunately, check cashing institutions can help. Many check cashing businesses offer a convenient service known as a payday loan.
A payday loan allows you to take out a loan on your next check in order to cover expenses between checks. Unlike traditional banking institutions, you can receive an immediate approval on your payday loan. You will need your state-issued ID, a copy of your bank statement, and a blank check in order to apply for a payday loan.
Applying for a payday loan takes a matter of minutes. The financial institution will then provide you with the funds you are approved for that same day. Considering that 19% of Americans agree that they would have to borrow money or sell their belongings if they missed a paycheck, it is easy to see how a check cashing business can certainly act as a benefit.
No Credit Check Funding
Aside from providing immediate funding, check cashing services also offer no credit check funding, which differs from traditional banking institutions. In order to qualify for a loan through a traditional bank or lender, you must have a good credit score. In some cases, lenders are willing to finance individuals with a fair credit score, but those lenders are few and far between.
Considering that 56% of Americans have subprime credit scores, they do not have access to great interest rates. In some situations, they do not have access to any traditional loans at all. If you have a subprime credit score and have been turned down by traditional lenders and banking institutions, a check cashing service can help. In some cases, a person can access up to $1,000 in funding through a check cashing institution.
In order to qualify, you will need to show proof of employment and be able to verify your income. As long as your income meets a certain threshold and you have verifiable employment, you can most likely qualify for a payday or personal loan through a check cashing service. Keep in mind that this is only meant to be used as a short-term loan. You should also never borrow more than what you can immediately pay back with your next paycheck.
Simplified Check Cashing Service
When it comes to cashing your paycheck, it may make more sense to go to a bank. However, banks typically do not cash a check for you unless you are a customer. If you do not have a bank account, a check cashing service is your next bet. Thanks to check cashing services, individuals such as yourself can cash your check without the expense of opening a bank account.
As of 2012, approximately 10 million individuals did not have a bank account. The most commonly-cited reason for not having a traditional bank account was a lack of funds needed to open an account. In many instances, banks require that you pay a certain amount in order to open your account. In addition, you are required to keep a certain amount in the bank in order to keep your account open and active. In most cases, the amount required to open an account is $100.
Of course, if you are living paycheck-to-paycheck already, you likely do not have an extra $100 lying around to open an account. Fortunately, you can avoid the expense of opening an account altogether thanks to check cashing services. You do not need to have an account anywhere just to have your check cashed. All you need is your ID and your check in hand and the company will cash it for you. Keep in mind that many check cashing companies charge a small fee to cash your check for you.
For more information, contact Bridge Capital Solutions Corp or a similar company.