No credit check payday loans are indeed a go-to loan option for folks out there who want to borrow money while having negative marks on their credit profile. Today, you can find many lenders who offer payday loans online. Aside from no credit checks, the application process of such loans is very simple, and borrowers can get their money fast.
However, no credit check payday loans don’t mean that you won’t have to fulfill eligibility requirements at all. For example, you still have to show the lender that you’re employed, have a steady income and have no other debt obligations. It’s also crucial to note that no credit check payday loans may have higher fees than regular payday loans.
As long as you pass the qualifications, you can get instant approval at PersonalMoneyNetwork.com or other loan network sites if you want to obtain payday loans online no credit check instant approval.
No credit check: What does it mean?
No credit check payday loans might sound like an unbelievable offer. The phrase will surely catch the attention of a first-time loan applicant, but it will also generate some curiosity if not disbelief. Some people would likely ask: does this kind of loan offer really exist?
To better understand a no credit check payday loan, it will be a huge help to differentiate it from a regular payday loan.
When you apply for a regular payday loan, you will have to undergo a thorough credit assessment to qualify for the loan. Your lender will either demand you to submit a credit report from a credit bureau or request the credit bureau to provide your credit report.
It’s a different scenario when it comes to applying for a no credit check payday loan. Your online lender won’t be strict regarding your credit score, but you still have to meet other requirements to show that you’re capable of repaying what you owe.
Although online lenders that offer no credit check loans don’t request credit bureaus for the credit report of loan applicants, most of them will still inform credit bureaus that borrowers have taken out a loan.
Informing credit bureaus about your loan application will discourage you from defaulting on the loan because if you don’t repay what you owe, it will drag down your credit score.
What are the requirements for online payday loans?
Now, let’s go into the various requirements that you need to meet to take out an online payday loan. Some online lenders differ from others when it comes to setting eligibility requirements, but it’s common for loan applicants to meet the following.
Legal age. You can’t apply for a no credit check payday loan if you’re not of legal age. In the U.S., you must be at least 18 years old and above to get this loan.
Income. Online payday loan applicants need to have a regular income to qualify for the loan. For example, you must show the lender a certificate of employment, pay stub, business certificate, bank statements (personal or business), or other proof of income.
You must not have current debts. It will be challenging for you to get approved for a payday loan if you have outstanding debts. If this is the case, most lenders will consider you a high-risk borrower because they will think it will be hard for you to pay two or more loans simultaneously.
If you want to obtain an online payday loan, keep in mind the eligibility requirements mentioned above. Once you provide these requirements, there’s a high chance for you to get approval from the lender and obtain the funds you need fast.
What are the risks/disadvantages of this type of loan?
There are some advantages of a no credit check payday loan, but you must also be aware of the risks/disadvantages associated with it. Here are those.
Shorter Loan Terms. A payday loan is a type of short-term financing with a repayment period of 2 weeks or 2 months, depending on the loan agreement. If you can’t muster up your payment in this short period, you will get a negative credit score.
Higher interest rates and fees. Online payday loans commonly have an annual percentage rate ranging from 400% to 500%, which is very high compared to other loans. They may also have penalties or extra fees that add up to the costs of getting this type of loan.
Deceitful lenders. You should watch out for scammers when applying for a payday loan online. There are dishonest lenders who are greedy for your money and would do everything to rip you off. Make sure that the lender you pick can be trusted by checking out reviews from past customers.
Don’t worry too much if you have a bad credit score because you can now acquire a payday loan that doesn’t check your credit profile. No credit check online payday loans are among the best options if you want to borrow some quick cash for essential or urgent expenses.