If you are short of cash in the middle of the month, you will wonder what would be the best thing to do-call up a friend or try to get a loan from your bank quickly? Though the first option may be all right once in a while, one would still hesitate to ask somebody for help. The second option would not make sense either because the requirement is immediate or if you have a bad credit history, you would anyway not clear the elaborate credit checking procedure of the bank. A “no credit check payday loan” would be the perfect solution.
A payday loan is granted by the lender with the understanding that the borrower will repay the loan with the fees which includes interest at the end of 14 days or the next payday. The lender may also agree for the loan to be paid in installments on successive paydays. Payday loan lenders generally do not conduct credit checks before approving the loan. Hence a payday loan is also called a “no credit check payday loan".
Before the time of the Internet, a person wishing to borrow a payday loan had to go to the lender’s shop, present the required documents and get the loan. Then came a time when he could call the lender on the phone and fax the necessary papers. Now, online borrowing is popular as the process is quick, easy and smooth.
From the comfort of one’s home, one can switch on the computer, access the Internet and search for sites which arrange for a no credit check payday loan. He can then enter the necessary details on one such site; this will take no more than a minute. In an even lesser time, he can even know whether his loan has been approved or not.
Bad credit history is rarely the cause of no credit check payday loan rejection. The reason for non –approval could be that the person’s salary is found to be insufficient in comparison to the loan amount.
If you are a person with a bad credit history and desperately need cash, you may rejoice that you can easily get a no credit payday loan. But remember that there is a catch. The fee that the payday lender charges you is very high. With your limited income, you may find it difficult to pay back the amount on the next payday. If you postpone repayment of the loan, you will need to keep shelling out additional fees.
Formerly, the lender used to obtain a post-dated check from the borrower at the time of taking the loan. On the due date of the loan, this check would be presented to the bank. If the check bounced due to insufficient funds, the lender would take the borrower to court. Now, with development of technology and use of debit cards, this is no longer the case. The money is directly paid by debit card on the due date.
Though one may be tempted to take a ‘no credit payday loan’ because of immediate availability of cash, no credit checks and no documentation, frequent borrowing of these high interest loans may lead the borrower to more problems. This loan should be taken only when really necessary.