Payday Loans no credit check are short term loans, and are also known as check loans or cash advances, these loans are usually for 500 pounds or less. They carry fees of about 10 pounds to 20 pounds per 100 pounds that is borrowed, according to the Consumer Financial Protection Bureau.
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It is not entirely uncommon, for most of us to be faced with emergency situations in which we are not able to meet our current needs financially. These are some of the most stressful times that one can go through. Even when a person has a stable job with a regular monthly income, one might still end up in need of extra cash due to occurrence of unpredictable events.
It happens to the best of us, it would be a pipe leaking in the basement, the fridge crashing, or your car breaking down, no one sees these kind of expenditures coming. This is where Payday Loan direct lenders step in so that you are able to have access to the money you require, but do not have.
Payday Loans no credit check are short term loans, and are also known as check loans or cash advances, these loans are usually for 500 pounds or less. They carry fees of about 10 pounds to 20 pounds per 100 pounds that is borrowed, according to the Consumer Financial Protection Bureau. One must first know that amount that he requires, and whether you are able to repay the loan before applying for it. It is not recommended by financial experts for people who are struggling with long term debt.
Applying to a bank for a regular loan, usually has a long procedure. You are required to meet a number of requirements and have in place all your paper work. Once you have gone through with these often tedious procedures will ones loan be approved sanctioned. One may also have bad credit due to missing out on your payments on your current account, mortgage or loan. Bad credit rating makes it hard for a person to keep a bank account, let alone apply for a loan.
When in need of Payday loans no credit check, the person concerned writes a cheque, in this cheque he includes the amount that he is borrowing as well as the fee that is charged against the borrowed amount. The loan is then processed to the person minus the fee. The cheque that is given by the borrower to the lender is not cashed in, the lender holds on to the cheque. Then on the person has the duration of the maturity of his loan to gather his funds.
In case this fails to happen, and the person is not in a position to pay back the loan on the date given to him, the lender can go ahead and cash in on the cheque that was given to him earlier by the borrower. In this case when the period of the loan is extended or there is a ‘roll over’ the fee that was previously charged against the borrowed amount is subject to change.
It is required for the company to maintain complete transparency with its customers, for example the cost that the person would incur for the loan he has applied for. This, and the payday lenders must give you the finance charge which is the pound amount, as well as the APR which is the Annual Percentage Rate(the cost of credit on a yearly basis); must be provide in writing before you sign for the loan.
The borrower has to fulfil a simple list of requirements in order to qualify for a loan. The person has to be a citizen of the UK, he or she must be above 18 years of age, in a position to provide valid personal id proof; persons concerned are also required to be employed with a regular source of income, and a fully functional bank account. Persons who are self-employed are not eligible for such loans.
Payday loans are in a position to attract and cover a larger section of society. This is because it does not employ the regular process of elimination. Payday loans do not reject outright, people who have credit histories that are not exactly positive in nature. This is unlike the functioning or regular loaning companies. Here anyone with a good credit history or a bad one can apply for a loan, as there are no credit checks.
This relatively flexible methods of functioning, of payday loans make it popular among various sections of society. You can receive the cash in hand much quicker. There are also fewer questions that are asked. In comparison to regular loans, these payday loans do not require you to do extensive amounts of paper work. This does away with the embarrassment that one is likely to face while trying to borrow money from any other source.
All the needed documentation can be filled up online, it is very rare that one would be required to send in details via email, fax or in person; and this is done only when there is a noticeable difficulty in the verification of the details the borrower has provided. Further you are not required to provide any additional reference.
Credit checks are done on the persons’ history of repayments. An individuals’ credit score is a much disputed fact, and plays a big role in deciding whether you will be able to apply for a loan, or if the lender will accept or reject you. It comes in to effect when applying for a mortgage on your house, personal loans and credit card and the likes that are offered by regular banks.
Credit score also plays a big role in deciding, the interest rate amount and the type of credit a person can account for. Payday loans on the other hand, do not conduct an extensive background check on every individual that applies for a loan. Once you have meet the basic criteria that has been mentioned above, one is good to go. This is what makes payday loans appealing.