Payday Loans No Credit Checks - No Need to Bother about Credit History
Many people suffer from the fact that they are unable to get a credit because of their ruined credit. This is true about bank loans, unfortunately. It will be next to impossible for a person to get a loan when he or she has got a history of bad or delayed repayments or a bankruptcy, or else. In such a situation a borrower have nothing to hope for, banks are very strict about their requirements and they won't allow anyone in who they consider non-creditworthy.
The Consumer Financial Protection Bureau has recently provided a very interesting and informative report on the account of credit situation in the US: Data Point: Credit Invisibles.
Seems like a hopeless case for many, right? However, there is another line of credit and it is called payday loans. These short-term loans are offered to any borrower with no reference to the state of their credit score and status. Such loans have higher interest rates and they are considered excessively expensive by many people; however, they actually represent the only credit option that does not involve credit history check, which makes them a real finding for many borrowers.
Payday lenders do not judge their customers on the basis of their credit score. They do not perform credit checks and they have very few requirements. These requirements are really very basis. A person has to be over 18 years of age, a US citizen, with an income at least $1000 a month and able to prove identity and employment. Additional requirement of having a checking account is also present with many lenders. Such easy terms and the speed of granting the loan explain the level of interest rates being set so high to some extent.
Payday loans are small cash loans up to $1500. They are generally given until the next paycheck and a borrower is supposed to repay the total amount – the principal and the interest all at once. With the interest rates ranging from $15-$25 for every $100 borrowed, not every borrower is able to repay in time and some lenders practice roll-overs (provided that this is a legal practice allowed in the state).
Payday loans are frequently taken to cover unplanned expenses such as medical bills or car repairs but they are also taken to cover current expenses such as bills and purchases.
Apart from being credit check free, these loans take little time to process and the approval time is really small. Any customer can apply for a payday loan service and get cash overnight. Online loans are very popular in this respect. They allow taking a loan from the comfort of one's house without the need of going anywhere and waiting. The absence of necessity to carry out a credit check makes the lending procedure all the more straightforward.
Here are some very helpful tips from CNBC on the account of credit score repair as well as short summery of the aforementioned CFPD report: 45 million Americans are living without a credit score .