Each year, millions of Americans run into a brick wall when applying for traditional loans due to their low or nonexistent credit rating. Many of these exasperated consumers throw in the towel, not realizing that there is a mechanism through which they can build up their credit score. That instrument is the cash advance, a convenient and expeditious short-term loan that helps consumers meet their immediate financial needs. No faxing cash advance loans are one of the swiftest and simplest methods of developing a credit report. A cash advance makes it possible for financially-strapped consumers to pay their bills and clear the balance by the due date and consequently begin creating a positive payment history.
Since the term of a no credit cash advance does not usually exceed two weeks, this loan alternative is ideal for credit-seeking consumers. They could avail themselves of numerous opportunities to borrow funds via such a short-term loan. With each cash loan that consumers timely repay, they will be able to prove their fiscal responsibility and to build a solid credit history. Borrowers can boost their credit ratings by avoiding negative balances on their accounts and ensuring that no checks are returned.
The Community Financial Services Association of America (CFSA) recently launched an initiative to help consumers rehabilitate their credit histories. This national organization, which represents at least 164 companies with more than 50% of the fast cash stores in the U.S., assists no credit check cash advance borrowers in building positive credit. It does so by reporting their repayment history to a progressive credit reporting agency known as Pay Rent, Build Credit, Inc. (PRBC), which was created to offer a niche of services not available through mainstream credit bureaus. Through PRBC, payday loan customers can establish a credit score and report by paying their rent and other bills timely and in full. PRBC tracks fast cash borrowers' periodic bill payments ranging from utilities, cable TV and telephone service to cash advance loans, rent and mortgages. By building such a payment history, consumers can demonstrate their creditworthiness when submitting employment, housing, insurance or credit applications. By joining forces, PRBC and CFSA have enabled payday advance loan borrowers to utilize their credit history to access more conventional financial services. The credit reporting agency empowers customers to voluntarily demonstrate their willingness and capacity to fulfill their payment obligations by signing on to its service to track and score bill payments, such as credit card cash advance payments. To build a positive credit record with PRBC, payday cash advance borrowers must pay their monthly bills in a timely fashion. The credit reporting bureau generates a Bill Payment Score (BPS), which can either substitute for a traditional credit rating or supplement one, for purposes of obtaining a more accurate and comprehensive calculation of the credit risk posed by an applicant. Individuals building credit through cash advance loans will find it as easy to grasp the BPS system as they would conventional credit scores. Borrowers are not required to pay PRBC a fee to peruse their personal PRBC file or to enroll in its service.