No credit check loans are much more popular nowadays than bank credits where the traditional credit check is included. The reason is that there are many bad credit borrowers who are considered high risky customers and can’t be approved by the traditional lenders. In any case payday loans no credit check have many benefits to offer to any type of a borrower. However, first you are recommended to find out more about how the procedure of a loan approval takes place.
Major characteristics of payday loans online
Sure that the main thing that makes payday loans online so popular is an absence of credit check, which means that you have 100% guarantee of being approved for the necessary amount of money when you need it badly. High acceptance rates are what you are going to be offered when choosing a short-term loan as a source of extra money. Payday loans are characterized by the following features:
- Fast and easy approval with any type of a credit score;
- Online application process;
- Up to $1000-$1500 deposited directly into your bank account;
- Absence of paperwork and faxing;
- Competitive interest rates;
- Short-term of use within a couple of weeks.
The main things that each borrower should keep in mind concerning online payday loans with no credit check is that they are the most convenient way of getting extra money but for the short period of time only. In case you doubt about an ability to pay a loan back, you’d better avoid short-term loans as they can damage your credit score. However, if you realize that your financial problems are of temporary nature, then payday loans online is the most reasonable problem solution for the short period of time.
Does a payday loan no credit check really exist?
Nowadays there are a great number of payday loan lenders offering no credit check loans being approved instantly. However, there are some things to keep in mind when you are offered such loans. First of all, you should know that there are no payday loans, which approval process doesn’t include any kind of credit check at all. When you hear the phrase “payday loans online no credit check” it means that there is no the traditional check, which is obligatory for the procedure of getting bank credits. No hard credit check is involved in the process of payday loan application, however, it doesn’t mean that there is no credit check at all as the soft one is always present. Any responsible payday loan lender needs to check the creditworthiness of the customer in order to have a clear picture of how much money you can be approved for. Sticking to the principle of responsible lending, payday loan lenders don’t approve the amount of money that exceeds the one you can afford pay back on the due date http://onlinelendersalliance.org/. There are some lenders who may promise you approve you for the loan without credit check at all but such lenders can’t be trustworthy as usually such lending companies offer no credit check loans with the aim to capitalize on the customers who can’t make the loan repayment on time.
What is involved in the approval process of no credit check payday loans?
Absence of the traditional credit check doesn’t mean that payday loans approval process doesn’t involve the process of checking out some basic personal information about the customer. In order to access your eligibility the employment details may be checked as well as the data about your debts if you have any. Your current financial situation is thoroughly considered as no collateral is required to get the payday loan online. Don’t be tempted by those lenders offering you instant loan approval without at least the soft version of the credit check as you may be trapped. Shor-term loans are a good option to consider if you know how to use them properly. When you have some emergency then sure you should apply for a payday loan online, which gives you an opportunity to solve urgent problems as quickly as possible.
Top-5 Traps of payday lenders you should know about
There are certain things to keep in mind not to worsen your financial situation with the short-term loan as not all payday loan lenders are really trustworthy. Some of them are looking for customers to set up traps for https://ag.ny.gov/. In order to avoid such traps, you are offered to learn more about them. Look through the list of the most common lenders’ traps, which take place more often:
- High payday loan interest rateThe interest rate may vary from $15 to $30 on a $100 loan. Some payday loan lenders have a very high annual percentage rate (APR), which is over %700. That’s why it is necessary to compare all loan offers and calculate their cost before you sign a loan agreement with the unaffordable interest rate.
- Re-borrowing from the same lenderIt is a common situation when a customer finds it difficult to make the loan repayment on time, which means that the lender may offer you borrower another loan with the aim to repay the previous one.
- DefaultThis happens when the customer can’t make the loan repayment on the due date. In this case the following situation is possible: money can be withdrawn from bank accounts, etc. Default may lead to such unpleasant consequence as debt collectors’ harassment.
- Hidden feesMany payday loan lenders hide real fees, which makes it rather difficult to pay all when you discover them. Be very careful reading all Terms and Conditions beforehand. It is recommended to study the payday loan agreement before you are going to sign it. Calculate the amount of money you are going to pay back beforehand in order to manage your monthly budget properly.
- Closure of the bank accountThe negative balance on your account means that it is going to be closed in case it was like this during certain period of time. The account is being closed due to the fact that it causes certain financial difficulties. A lot of those who experienced the debit attempts failure know that they are going to be refused by the traditional banks when applying for a loan.