Payday Loans

Payday Loan For No Credit


An Introduction To Pay Advances

A payday loan is a loan which is offered to people who are looking for some money quickly, and for only a short period of time. The money is then paid back the next time the customer gets their next pay check, hence the name, payday loan.

Will My Credit Rating Affect My Chances Of Being Accepted?

The answer to this question will come down to which lender you choose. But, it is still not entirely clear whether even those companies that state that they do not carry out such a check actually do not. There are plenty of lenders who do carry out a credit check, and they state as much on their website. Still, this may just be a cursory check, and not one that shows up on your credit file.

What Do I Need To Do To Get A Loan?

It used to be standard practice for the applicant to hand over a check that has been postdated, the date of which needs to correspond with the following date of their next round of wages. On the off chance that, as a borrower, you don’t repay the money, the moneylender will basically take your check and bank it. Of course, in the event that your checking account at the bank is without adequate funds, you will get a bounced check fee from whoever you bank with, as well as additional charges from the lending company.

It is now also typical for a lending company to ask you to provide details of your bank account and charge card, so that the money can be moved to and from your bank account electronically. This is less hassle for both you and the lender, and there is also less paperwork to be completed by both parties.

Where Do I Find These Lending Companies?

Internet Based Payday Lenders

You may have already noticed that a lot of lending companies which offer payday loans such as these are to be found on the web. This allows you to finalize your application for a loan entirely online, or rarely, you may be asked to fax a request form to their office. It is often the case that once you have been accepted for a loan by a lender, that you could receive the cash within the hour, as the money will be sent to your checking account via electronic cash transfer.Online Loans

In this setup the reimbursements on the payday loan will additionally be taken from your checking account in the same manner on or just after you next receive your wages for the month. If you’re seeking a non-credit check cash advance on your next salary check, the best choice is to look on the internet, as various lending companies offer non-credit check loans.

Store Based Lenders

These seem to be appearing all over the place at the moment, and there are one or two differences other than just the fact that they have a shop you can walk into. One of the main advantages of using the store of a lending company is that you get to speak to a real live person, rather than just interfacing with a computer screen. Plus, your personal details are less likely to be intercepted by criminals that use the internet. The downside is that there is more paperwork to fill out. In addition to which, you may have had to spend time traveling to and from the store in the first place.

What Should I Avoid Doing When Applying For A Loan?

At the point of application, you will be asked to confirm a few personal details, and it is at this point that you will need to be as truthful as you can. Otherwise, you could find yourself in trouble for attempting to fraudulently claiming a loan. The penalties for this can be severe, and you could very well end up in a court of law.

I Have Heard Of Telecheck But What Is It?

If you have ever applied for credit at a place where you know that your credit score has been examined, then there is a good chance that the lender used the Telecheck system or one similar to it, in order to check your credit worthiness.

How Telecheck And Other Credit Checking Systems Work

Whenever a lender needs to check the credit file on a customer, they need to make use of Telecheck or a similar service in order to get a detailed report on a persons credit file. The time when the credit report comes back to the lending company, and they see that it is not very good, most of these clients will be turned down for a loan, depending on the minimum score that needs to be attained to get a loan. This number will vary from lender to lender, with some having higher requirements than others.

Of course, a lot of online payday lenders say that they do not carry out a check on an applicant’s credit record, and this is something that is hard to believe. It is not likely that they lend to anyone no matter how low their score. The rationale behind the need for credit index checking is that these advances are not secured, so there is no need for guarantee. The time when people take out a no Telecheck payday loan, proof of their income is the main priority, on condition that lending company can affirm your employment status, your application for a cash loan should be accepted.

So What Are The Pros And Cons Of This Type Of Loan?

The Pros

An advantage to a payday loan that is supposed to be free of any sort of credit check is that you won’t be discriminated against for having a terrible credit report, though you should be aware of the fact that you will have to pay higher rates of interest for your payday loan compared to other financial products. The rates of interest you will be provided with are fixed upon the Guaranteed Approvalamount you need to get and your credit score will not matter at all. As of now, there are various payday lenders that are in a position to offer loans with no check on a credit file. A lot of these financial institutions have been in operation for quite awhile and have a lot of clients, meaning that this is a popular method of getting cash for a lot of people.

The Cons

One of the major problems with these types of loans are quite well known, and have been discussed above, but it is well worth reiterating once more. The main concern that a lot of people, the media and financial experts alike, have about these loans is that they charge massive amounts of interest and other fees on top of the loan amount. Plus the short term nature of the loan is likely to leave a lot of people financially worse off if they keep making use of these loans in the long term.

Another problem with payday loans, and one that is often overlooked, is that the amount a person can borrow is dependent on the amount of money they receive in wages. Payday loans will ordinarily range from as little as $100 to $1,000, despite the fact that the sum offered will be dependent on your wage amount. You also need to be mindful that provided that you are attempting to acquire a payday loan, the amount that you can obtain may be even less. This is since the lending company is taking a higher than normal risk by not checking your reliability to pay back the loan, once you have it.

Therefore, you should not expect to get your hands on vast amounts of cash, but only around half of the value of your standard wage. Unfortunately, assuming that you are unable to adhere to the terms of the loan, the punishments are generally quite severe. Numerous individuals have reported APR’s as running into the thousands of percent. Also, if they needed to rollover a salary advance payment, they will have noticed that even more money has been added to the account.

A payday loan might be the perfect answer for anybody battling with a shortfall of cash. Though, it is absolutely critical that you treat this sort of loan with the seriousness it deserves. Never obtain more cash than you require, never lie on your application form in order to be accepted, and make sure that you have the funds in your bank account on the day that the repayment of the loan is due.

In The End

The reasons given for the high level of interest and fees on a loan such as this may have something to do with the fact that you are still going to be seen as a risk to lend money to. They will already know this, due to the fact that they are in the business of providing loans to people in your situation, and here you are applying for one of their financial products.

It therefore does not take a genius to work out that you have encountered some financial difficulties in the past, which has led you to their website or loan store. It seems to be a classic case of treating everybody the same. They are in the business of providing expensive loans to people that cannot get finance through the normal channels, ergo they must have a poor credit rating, this then leads to a person having to take out a loan that has high fees and interest, because there is no other choice.