A payday loan without a credit check is a loan that is advanced without the lender conducting a hard credit check of the borrower. In this case, the credit score will not affect the lender’s decision to advance a loan to a borrower. It means that the borrower is protected from the detrimental impact of credit score when accessing credit. In such a case, some lenders may opt to conduct a soft credit check on a borrower’s credit file. The advantage is that the application process is easy and money is deposited on the same day, while the disadvantage is that the loan attracts high-interest rates.
Online payday loans for bad credit
- Where to get a payday loan for bad credit? Well known and often used examples include Personal Loans.com, LendYou US, VivaLoan US and Zippy personal loan.
- Some of these companies provide real personal loans but they may also connect you to a payday loan provider. Be aware that costs may be higher than you can afford. As such many easily enter a debt trap.
- Find out about more options that are available for you, such p2p loans for bad credit, secure loans, loans with a co-signer and loans through friends or family.
What Do Lenders Consider?
Since lenders do not focus a lot on credit scores, they carry out a soft credit check. They look at:
- Bank account
- Address details
- Current salary
- Mobile number
How a Payday Loan Without a Credit Check Works
To get a payday loan without a credit check, you need to visit a lender and fill in an application and then wait for your money. However, be sure that the lender will request proof of income where you can use a bank statement. When you apply for a payday loan and you qualify, the money is deposited into your account instantly.
People prefer payday loans when they want to avoid late payments for their utilities and credit cards. Some lenders have an online application option. Hence, you can apply for the loan using your computer or smartphone.
The decision whether to or not to lend you money is usually instant and does not require a hard credit check. You get cash in your bank account the same day you apply. A payday loan without credit check will not affect your credit score.
Advantages of Payday Loans With No Credit Check
- No penalties. There are no penalties when you repay the loan earlier than you indicated.
- Fast approval rate. Payday loans have a quick approval rate since there are no many credit checks by the lender.
- Simple and fast application process. In case you have an emergency, consider a payday loan since you can apply for the loan online and access it the same day.
- No credit check. This makes it most suitable for people with a bad credit score. Traditional banks will deny you access to credit or charge you high-interest rates if you have a poor credit score. Also, they will take long before processing and approving your loan application.
- It helps one to build their credit score. When you consistently make on-time payments for your loans, the lender will report that you make payments on time. With time, your credit score will start improving.
Disadvantages of Payday Loans without Credit Check
- High-interest rates. Since these loans do not have a credit check and do not require a hard credit check, lenders charge higher interest rates to substitute for no credit check.
- A maximum limit on borrowing. Lenders do not charge a borrower for early payment; hence, once you can clear the loan repayment early and borrow another loan.
Payday loan companies will always be happy and ready to lend you money, but there is always a catch. Their interest rates are very high. Some of these companies can charge you more than 400% annual interest rates for a short-term loan. They will give you nightmares during repayment you will want to forget.
Are Payday Loans Without Credit Safe?
You can access payday loans without credit check from reputable and legitimate lenders. To determine if a payday loan is safe, consider the following:
- Rate. The rate of the loan can be expressed either in terms of interest rate or percentage of the principal amount.
- Term. The term is the period when one gets credit and the rime when the principal and all other charges should be paid.
- Ability to repay. Before applying for a loan, look at the terms and conditions of the loan and then determine whether you can pay the loan. If you cannot, do not go ahead and complete the application.
Payday Loans With No Credit Check
- PersonalLoans.com. It is a platform that connects borrowers to lenders who advances personal loans between $500 to $35,000 with up to 35.99 percent APR.
- VivaLoan. It is a loan marketplace that connects borrowers and lenders for a payday loan or a personal loan between $100 to $15,000. Read our complete review of VivaLoan.
- ZippyLoan. This is an online marketplace that connects borrowers to payday loan lenders. It matches borrowers to lenders based on their financial profile. Any credit you take that is below $1000 is considered a payday loan and is payable when you receive your next salary.
- Bad credit loans. The platform doesn’t offer loans directly. It works with a number of lenders who offer personal loans between $500 to $5,000 with an APR between 5.99 percent and 35.99 percent.
- Next Payday Advance. It offers payday loans between $100 to $1,000 with an APR of up to 391 percent.
- Check Into Cash. This is a direct lender who provides both payday loans and title loans between $100 to $1,500. However, the maximum loan limit for new customers is $750. The APR is usually up to 782.14 percent, but it varies from one state to the other.
- CashAdvance.com. It offers payday loans from as low as $100 to a maximum of $1000 with an APR of 200 percent to 2,290 percent.