Why a Cash Advance Doesn't Require a Background Check

When you are receiving a cash advance check, the lender will not review your credit score. This is unlike nearly any other type of loan; other loans rely on this information in order to determine your interest rate and loan amount. However, with a cash advance, these items are already determined because the lender is well-aware of the risk assumed in funding the loan.

Background Checks Protect against Risk

The main point of a background check for a loan is to determine the likelihood you will repay the lender. If the likelihood is low, you will get a lower loan limit and higher rate. If the outlook looks good, the lender will extend a more favorable loan.

Cash Advance Lenders are High Risk

In nearly every situation causing a person to apply for a cash advance, there is a very high likelihood the loan will not be repaid on time. In many ways, the lender wants this. The harder time you have meeting the debt obligation, the more you will have to go back for cash advances. This creates a very profitable situation for the lender who is actually taking advantage of the fact you are not credit worthy.

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