No Credit Check Payday Advance Loans
As the name suggests a payday loan, often referred to as a payday advance or paycheck advance, is a small, short term loan that is typically repaid when a borrower reaches their next payday. As payday loans are merely intended for short term use the fees and APR charged can often be much higher than a conventional loan. They also carry a significant risk for any lender, and it is estimated that payday advance loans have a 1 in 5 default rate.
You would think that with statistics such as this it would be extremely difficult to obtain a payday loan, however, many lenders even offer this type of borrowing without a credit check. Just so you are aware, the vast majority of loans, credit cards and mortgages will generally be credit scored. This will mean that a lender will request a copy of your credit report and credit score to ascertain whether you are a good lending risk.
However, a payday loan can often be granted without the need for credit checks, and simple verification of your income and employment may suffice. This is done via a check of your recent paystubs and bank statement. With that said, some lenders may even completely omit this stage, although different lenders will have their own underwriting criteria.
In order to secure a payday loan, a borrower is required to write out a post dated check, which should coincide with their next payday. If, as a borrower, you don’t repay the loan in person, the lender will simply redeem this check. However, in the event that your checking account is short of funds you will receive a bounced check fee from your bank, and additional loan costs and fees from the lender.
The most popular types of payday loans are typically found online. This allows you to complete a loan application online, or occasionally you may be required to fax the signed document. A payday loan is often approved within minutes, and the funds will be transferred to your bank account via direct deposit. In this scenario the loan repayment figure will be electronically withdrawn from your checking account on your next payday. If you are looking for a no credit check payday advance loan, your best option is to search online, as many lenders will not check your credit history or your income.
An online lender who does not require a credit check will aim to verify certain details with you during the application stage. You will typically need to verbally or electronically confirm your employment, income, residential and checking account status. Payday lenders will differ in the information they require, but they will basically want to know that you have lived in your current residence for at least 3 months, you have been working for your current employer for at least 3 months, your income is paid by direct deposit, and depending on the loan amount requested, that your income is at least $1,000 per month.
If you can confirm these details in a positive manner, you should be able to obtain a payday loan without any credit check being required. However, it is vitally important that you are completely honest and up front about these details, as they can come back to haunt you. Imagine if for whatever reason you are unable to repay this loan on its due date, and during discussions with your lender it comes to light that not all the details you provided were completely accurate.
This basically constitutes fraud, and the penalties imposed by law for fraud are far more serious than simply having a check bounced and additional fees charged. Admittedly, many people who seek payday loans are desperate for money, but this no reason to lie. If you are looking for a payday loan that requires no credit check, I would hazard a guess that you may have a blemish on your credit record or are generally considered a high lending risk by most lenders. Once again, this is still no reason to lie, and the consequences may prove to be severe.
Payday loans will typically range from as low as $100 to as much as $2,500, although the amount offered will be in direct relation to your income. You should also be aware that if you are trying to obtain a payday loan without a credit check, the maximum you can borrow may be even less. This is because the lender is taking a higher than usual risk by not verifying your creditworthiness.
Therefore, you shouldn’t expect to borrow a large amount of money via a payday advance, and you should only try and secure this type of borrowing if your situation is desperate and you know that you can comfortably repay the money within the allotted time. Unfortunately, if you are unable to stick to the terms of the loan, the penalties are usually extremely hefty. Many people have reported APR’s as high as 1000% because they had to rollover a payday loan repayment to their next payday.
No credit check payday advance loans can be the ideal solution for anyone struggling financially, but it is of the utmost importance that you treat this type of lending with the respect it deserves. Therefore, never borrow more money than you need, never lie on your application just to get approved, and make sure that pay back the loan on the date agreed.
