About Payday Loans without Checking Account
For an application to be approved, the borrower must be able to present that he is at least 18 years and has a stable job with a salary of more than £1000. Many lenders will also require that you have an active bank account so that direct deposits can be done. However, for those without, you can still look for getting payday loans without checking account services.
Most salaried persons have active bank accounts that they can use to apply for a payday loan. However, some people do not have an active checking account, which makes it difficult for them to apply for a short term loan. Payday loan lenders addressed this issue by allowing payday loans without checking account being given in the form of a signature loan.
The advantages and disadvantages of payday loans
In times of financial need, a payday loan company can provide the much needed solution. Depending on a borrower’s salary, loan lenders can approve of loans ranging from £100 to £1,500.
The benefit of these cash advances or short term loans is that they are given almost instantly. Payday loans can be approved within minutes depending on the protocol of the online loan. The whole approval process has been revamped to provide better and faster service to borrowers. This enables borrowers to apply for loans within minutes and get approved within the day.
Since the industry of payday loan lending is already growing, borrowers are given a lot of options with regards to their repayment terms. Since these are just short term loans, payday cash advances are usually paid within a payday period or two.
Some loan lenders provide loan extensions for those borrowers who are unable to cope with paying their loans. This is done to provide borrowers ample time in settling their debts.
With payday loans without checking account services, borrowers are limited in terms of the amount they can loan. In particular, they will have a low loan amount with high interests. This is understandable since borrowers are unable to present to the loan lender a guarantee that will support his repayment terms.
Without a checking or savings bank account, borrowers will have to directly visit the loan lender in order to deposit his money. Whether it is payday loans without checking account or with an active account, cash advances must be settled in full before the due dates or legal cases can be filed against the borrowers.
The importance of a checking account for payday loans
In times of financial crisis, getting money is hard primarily when the time allotted for it is only short. This situation is seen in incidents that are in need of immediate cash, such as medical emergencies or during disasters. However, payday lending companies have made it easier for a borrower to apply for a loan. Borrowers who are able to satisfy all requirements are allowed to apply for a loan. A borrower just has to be 18 years of age, with a stable job earning at least £1000 per month, and have an active checking account.
A checking account or a bank account in general is important as a proof of payment or guarantee that the borrower will settle all the dues. Without an active bank account, lending companies have no hold over borrowers since there is no collateral involved in loans. Also, a bank account is needed since loans are deposited directly into the borrower’s checking account.
In turn, the borrower will have to issue post-dated checks to the lending companies as payment for the payday loan. An alternative to post-dated checks is direct deposit, wherein the loan company automatically withdraws payment from the borrower’s active account.
Finding payday loans without checking account services are not impossible. However, borrowers must be patient enough when finding a lending company that offers such type of loan. Usually, borrowers may find such loans at loan lenders with a physical office. Online payday loans generally require bank accounts for easier transactions.
Without a checking account, borrowers must constantly keep in mind the due dates for the repayment of their loans because high finance charges and others penalties will be given. Getting payday loans without checking account services are a bit risky because the interest rate tends to be higher than just regular checking account payday loans.
Are payday loans without checking account services worth it?
The higher interest rates and finance charges attached to payday loans without checking account services are a bit discouraging, especially for first-time borrowers. However, during financial crisis with no better alternatives, borrowers can rely on this type of cash advance.
Borrowers must always remember to pay their dues on time. With interest rates being higher, the longer the payday loans without checking account services remain unpaid, the higher the finance charges will be. In this case, to avoid this penalty, all due dates must be kept in mind.
Lending companies of payday loans without checking account services are themselves taking risks because they have no means to verify if the borrower has the financial capability to pay his loan. Usually, these payday loans do not have collateral involved in it. In this case, having a signature loan is necessary in order to have a sort of guarantee that loan lenders can take hold.
While payday loans without checking account services have a lot of disadvantages, this short term loan can still serve as a solution to your financial needs. However, debts must be settled immediately in order to avoid heavy penalties. In a way, a checking account serves as a means for loan lenders to regulate this industry, so having one will ultimately make things easier for you.
When you need help and you do not have an active bank account, be sure to see if payday loans without checking account services are available and beneficial to you.