: I am thinking about taking out a loan of my $1000 just to help me get by these next few months. Use some for bills and put the rest in savings. I was paying off a $450 loan with $70/month payments. I thought the monthly payments were a little high for such a small amount but I needed the money so it wasn't a Ute deal. The place im about to go to doesn't do credit checks. They promise $500 with no credit checks. Is that sketchy? Its a well known business in my area but should I be concerned. And also, since they font do credit checks, will my payments be higher?

: scams for online loans are very popular. many people just don't know when they are falling for one. they might want money upfront or your checking account info.
this also sounds more like a payday loan. pay day loans don't check your credit.

: Your own plan is sketchy! Why borrow money at 12% or more and deposit into an account that pays less than 1/2% interest? You'd do better by using what money you have to pay your bills and put anything left over into savings. That $450/$70 loan sounds like a payday loan or some high interest loan arrangement. Yes, your payments will be higher because of the high interest rate you'll get. Since they don't do credit checks, that makes it a very risky loan for the lender. They have to compensate for that risk by charging high interest rates - like any other lender would do based upon the credit score of the lender.

Take a look at what you are spending you money on. If you are dining out a lot, eat in. If you are eating steaks, switch to hamburger. If you are drinking wine, switch to beer. If you are drinking beer, switch to water. You get the idea. Cut needless expenses until you can get your finances in order.

: Taking out a loan and putting any amount of it into savings makes no sense. You will pay more interest on the loan than you will make from the savings account. Find out what the interest rate on your $450 loan is and compare that to the interest rate you are going to pay on the loan you are considering. You can go with the lower rate but keep the loan as small as you can. What you are doing is what gets a lot of people into money trouble.

Rule 1. If you can't afford to buy it without paying exorbitant interest rates, than don't buy it. If it's something you don't really need, then don't buy it at all unless you can afford to pay cash for it.

Rule 2. Don't throw good money after bad. Don't take out another high interest loan to pay off one you already have. Especially getting a bigger loan than you have now, that's going to snowball on you and you'll need another bigger loan to pay off that loan then another loan and so on.

What you need to do is just buckle down and suffer a little bit. Pay off that $450 loan as fast as you can. Hopefully there's no prepayment penalty. If there is, then you know you got taken. Once you have it paid off don't do it again. You'll be better off in the end if you do that.