No Credit Check Payday Lending - Lending Miracle or Costly Mistake?
Tired of being declined? Do you need to borrow money fast but your credit history has closed the doors of traditional financing? If you have had a bankruptcy, foreclosure or for whatever reason simply fear that qualifying for a personal loan is impossible, then people traditionally turn to payday loans no credit check direct lenders for quick cash.
The Bad Credit Blues
After foreclosures, bankruptcy or various other fiscal calamities, your getting approved for financing can become a challenge. A low FICO puts you in a position where traditional bankers don't want to speak with you, the corner banks turn you away, and even mid rate lenders decline your applications without even a cursory review. No matter your emergency or pressing need, no matter how recouped your current income, traditional lending doesn't care, you simply don't qualify because of your history.
Well, and good, you are paying for your past mistakes with high interest rates and restricted banking options.
But what happens when you find yourself facing a money emergency and have no corner bank to turn to get you past your short-term need?
The typical avenue available in such a situation are payday loans online, a few select credit cards for people with bad credit, or perhaps personal lending from family members or friends - if you are so lucky. These borrowing options all have their appeal because they offer easy approvals that don't take into consideration your bad credit.
The trade off for the financiers to accept the higher risk that your FICO indicates is that they either come with very high initial costs, increased monthly debt service fees, or with personal lending an emotional costs that can far outweigh any financial concerns.
All Payday Lending is Not Created Equal
"Imagine an online, hassle free ATM, eager to spit money out for you when you need it..."
Once you have determined that payday lender financing is the right choice for your need, there still remain a variety of different programs available amongst the available direct lenders. There are many different companies that offer loans of varying rates, amounts and payoff terms. Of concern for most borrowers is whether the application process is faxless, if a checking account is required, and the lender will verify employment.
There is an old saying that applies in this situation: Fast, Easy, Cheap: pick two. No employment verification payday loans with same day funding are are notorious for being costly, and they can be very expensive if what you borrow is mishandled. Even these lenders often do have some qualification standards, ruling out guaranteed approvals, and not all will simply lend money outright willy nilly to someone without a checking account.
The requirements for qualification are a decided by the payday lender, and though not typically difficult to qualify for, only a special few offer financing without a hard credit check.
Of the lenders that allow for easy borrowing, you typically will be required to have a job, a proven history of income, in some cases a driver's license, and a valid checking account. Financing like this is not exactly guaranteed, but pretty close. They also require people borrowing to be over 18 years old and in all cases are looking for some sort of proof that you have the financial means to for repayment. Some lenders require you fax in your documents to prove a history of income, or that you are currently employed.
No Documents, No Credit, No Problem
Getting no credit check financing approved primarily hinges upon your income. These lenders offer borrowers the opportunity to get the cash, no credit report needed, because they base the approval decision primarily on your abilty to repay. This is what has earned payday lending a reputation as truly hassle free borrowing on the web -- as long as you borrow responsibly.
As mentioned , this borrowing convenience is a tradeoff with costs and rates. There are some companies that offer these short-term loans only to jack up the interest rates and costs with hidden fees and penalties. Just because you are taking advantage of easy financing, doesn't mean you should pay through your nose. No matter how fast you need the money, it is always wise to take a few moments out and review the terms closely of your chosen offer. Legitimate payday loan lenders will always clearly provide the details of your financing offer up front, prior to any obligation for your review. Still, banks are notorious for filling the fine print with profit to meet their bottom line, review your loan agreement carefully, know what you are getting yourself into before you borrow.
A Payday Lending Checklist
In order to ensure that you make the right company selection for your borrowing needs, the following is a checklist to help you decide if a no credit option is really necessary. When you find yourself shopping for easy online loans ask yourself the following questions:
How bad is my credit really? - Your credit score might prevent you from borrowing from cheaper, more traditional banks, but then again, it might not be as bad as you think. Be sure to rule out the remotest possibility of financing through cheaper alternatives.
How fast do I need the money? - Do you really need the financed amount in a hurry, as you will pay more for the convenience of fast financing, if your finances can survive the slower approval time of cheaper alternatives you could save money.
What is a reasonable period that you can repay the money you borrow? Short-term lending is more expensive than long-term lending. Try to avoid payday loans that require a speedy repayment period putting pressure you don't need on you in order to buy the time to pay bills or other obligations.
For further information regarding the negatives, the FTC provides a detailed payday lending information that is available online to ensure you borrow responsibly.
Make Your Borrowing Easy
In order to make your lending process as simple, fast and straightforward as possible you will want to gather a little information before you submit your application. In this case your payday lender will first want to know how much money you want to borrow. You will also be asked to provide your address, phone number, identification information, and you will want to have a personal check ready. Using your check you will be able to provide your routing number and account number so that they can fund your money directly into your checking account as quickly as possible. Note: they will also use this checking account access to withdraw payments on your repayment dates. All the financial information you need can be found on a blank check. Following a few questions regarding your employment, your application will be submitted for approval, it's as easy as that and the approval process is very fast, you will typically receive an answer via email within 90 seconds.
In all likelihood you will be approved, though residents of some States are not eligible for payday lending, once accepted, and the money you requested will be direct deposited into your bank account. If there is something holding up your approval, you can contact the lender and explain the situation, as any reputable online cash advance lender will have a phone contact number for consumers.
Repayment Of What You Borrow
The payday financing industry is a much maligned lending model by those who do not take the time to understand the vital role these high risk bankers play in real people's lives. These are a perfectly legitimate, albeit expensive, option for people with bad credit who do not have access to more traditional means of borrowing.
That being said, the repayment terms for most companies are costly and after borrowing you should not treat the payoff of your balance cavalierly. Missing your repayment date and falling into a cycle of endless extensions of your payday loan is expensive, makes no financial sense, and is downright silly. Don't do it if you don't have to.
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