Payday Loans with No Credit Checks
In contrast with the loans from banks, there are private money direct lenders who offer payday loans with no credit checks. These lenders are able to cater to those who are unable to get loans from banks due to poor credit scores.
Understanding payday loans
A payday loan refers to a cash advance loan that can be borrowed for a short period of time, and may also be called a paycheck advance. It helps those who are in need of fast cash. It is often used by people who are unable to wait for the cash that is coming on the next payday. The loan is then used, and the money is usually due within two weeks.
Like payday loans with no credit checks, the loans come with high interest rates. Different states have different rules as far as the maximum interest rate that money lenders can charge, but the usual fee is around 10% up to 20%. However, there are certain areas that have strict laws and regulations that do not allow payday lending at all.
The usual process of applying for short term loans is that the lender loans money to the borrower, and the money will be returned in the next payday of the borrower. Before the loan is granted, there are particular requirements that will have to be met by the borrower. Some private lending companies offer fewer requirements, such as those that offer payday loans with no credit checks services.
The traditional way of getting payday loans with no credit checks, or any other loan, is by personally going to a lending store. The borrower can then get a loan after completing the requirements, and writing a postdated check that has the amount of the loan and the fees. This is for ensuring that the lending store will be able to get its money back.
When the payday arrives, the borrower is supposed to pay back the loan and the accompanying fees. In case the borrower does not return for paying the loan, the lender can then redeem the cash by using the postdated check. If there is not enough balance in the account of the borrower, the borrower will have to pay extra fees for releasing a bounced check. To make matters worse, the loan might have additional fees for not being able to pay on time because of insufficient funds.
The other way of applying for fast cash loans is through online applications. There are forms to be filled and submitted through the Internet for the approval of loans. Once all the requirements are submitted, the loan lender will review the borrower’s application, and the application can be approved in a matter of few hours or a maximum of 2 days. More online payday loans have fewer requirements and tend to have deals like payday loans with no credit checks.
Other payday loan applications can be done over the phone and some details may be asked to be sent via fax. The through-the-phone application is more or less having a customer representative fill the application as you provide the information.
The advantage of payday loans with no credit checks
Payday loans with no credit checks tend to attract quite a lot of those in need of quick cash. This is because one of the drawbacks of applying for a loan is that there will be a credit check. The credit check is all about checking if the borrower’s credit history is ideal, which includes payments done on time, and being respectful of the credit limit.
Most of the lending companies that offer payday loans with no credit checks have online loans. The online application makes it easier for a borrower to apply for a loan, and some companies even boast that they can release the loan within an hour. That is only the case if all the requirements are met.
As long as the borrower pays back the lending company on time, there will be no penalty fees. In case the borrower will have to apply for a payday loan again, it will be easier to get the loan the second time around if a previous loan was paid back on time.
Possible requirements to be met
One of the requirements of payday loans with no credit checks is being a registered citizen. It might be required to submit a copy of a valid ID and a utility bill in order to prove the residency requirement.
The borrower also has to be at least of the legal age of eighteen years old, and employed, in order to have the request for a loan to be approved. The job, or the next payday, will be the binding that can give assurance that the loan will be paid.
Other requirements will be having a valid email address that the lending company can be in contact with. It is possible that a working bank account will also be required, and especially if the option to have the cash deposited directly to the account is selected.
Although the requirements for the payday loans with no credit checks may not be much, the application for a loan should be one of the last options to be taken. However, if there are no other options in cases of emergency, then payday loans with no credit checks can help you.