Some people avoid applying for payday loans due to the misconceptions associated with these loans when advertised with ” no credit check”
You may have read somewhere that online loans are risky or can lead you to a debt trap. When you need money urgently some borrowers make rash decisions. Below we discuss the top benefits of payday loans.
Instant approval is different from an instant decision. When you see a company advertising a cash advance loan application with instant decisions this means the outcome could be a denial.
This can be frustrating when you need emergency cash. Instant approval is another payday myth as the lender still needs to do a background check on you.
If you borrow money whether online or in-store you have to be subjected to some form of credit check. This does not mean that payday loans are not available.
A soft credit check is done to verify your identity and financial situation to determine whether you can afford to pay the loan. This form of credit check does not affect your FICO score in any way.
A soft check is carried out which is a background search on your personal details. This could include name, address and any previous loan defaults.
Traditional credit decisions from credit cards or bank loans use a hard credit check. This is using credit bureaus to assess your credit score.
“No credit check” payday loans are offered in the short term.
Payday loans are attractive due to their ease of availability and instant funding. The loans have fewer formalities compared to bank loans. It takes less time to apply for a payday loan online.
Payday loans can be deposited as soon as the same day. This is a lifeline when you have financial emergencies. The cash can be deposited into your bank account.
If you need same day cash ensure that you submit your application early enough. When you place a loan request before the cut-off time you may qualify for same-day funding.
Late applications are approved on the next business day.
Bank loans may have a low rate of interest but there are also many reasons why they are less preferential. If for instance you need instant cash, you may have to skip your lunch or take a break from work just to go to the bank.
On the other hand, everything concerning payday loans is done online.
You can qualify for a high loan amount when applying for an online payday loan. This will not happen on your first or second application. Providing you pay your first loan back you will be trusted more and be able to take larger amounts.
Another option if you have equity in your vehicle is a title loan.
Due to prohibitive interest rates and potential hidden fees from some predatory payday lenders you should read the contract properly before you sign the loan forms.
When applying for payday loans, your personal information is protected. This means that no third party can access important information like your bank and personal details.
Besides, you have a high chance of qualifying for the loans even with poor credit or no credit history. Additionally, there are no restrictions on usage. You can use the funds for home renovation, car repairs, medical bills or any other immediate need. The main features of payday loans include the following;
Most people apply for payday loans to pay for car repairs, medical bills, rent among other things.
Most payday loans are offered by online lenders. Try PaydayNow. Here, you can apply for the loan directly from the lender; there are no middlemen involved. Other benefits of taking out a payday loan from PaydayNow include;
Research shows that a large percentage of people who look for online loans have bad credit. The main reason behind this is that traditional financial institutions will check your credit score before approving a loan.
In general these companies want good credit in order to distribute a personal loan. They also use credit bureaus to check your credit report.
Payday loans are not dependent on your credit score.. If there is proof that you can afford loan payments, then it is easy to be approved for the loans.