Payday Loans No Credit Check

Payday loans no credit check, this phrase is very commonly used by a number of financial institutions on their websites. Payday loans are small short term loans, generally for about 15 days. The amount of Payday Loan usually does not exceed $1000. Such payday loans are availed by the borrower to meet his expenses until the next payday if he has run out of funds. These loans are also termed as payday advance or these payday loans. The primary advantage of these loans is no credit check is required. Therefore even people with poor credit ratings which would have been revealed through a credit check otherwise qualify for. Thus the advertisements flashing, Payday Loans No credit check. Payday loans are disbursed immediately. Sometimes the funds are transferred the very day the loan is applied for.

Rules and policies regarding payday loans vary in each country and also within the various states of USA. The finance charges can range from 15% to 30%. It is obviously higher than other loans as there is no security involved and more importantly no credit check is done.

The process of a payday loan is rather simple. The borrower visits a financial institution to avail a payday loan. The payday lenders would require recent pay records to understand if the borrower has a steady source of income. In return he would typically provide a post dated check. This check can be encashed on the employee’s payday. With increasing e-transactions a number of people are now opting for direct debit from the bank accounts also. Post the application no credit check is required and the institution will transfer the funds into the borrowers account. In case the check bounces or the electronic debit fails the borrower can be charged additional fees and fines. Also higher interest rates would be levied in such cases.  In certain cases the loan can be renewed as well. But the actual payment on the payday loan must be made to avail this option.

The internet is full of websites, paid ads and pop-ups offering payday loans with no credit check. While these loans can be useful in meeting short term needs they should not be used as regular source of funds. The fees charged on these loans are astronomical and can drain one of a lot of cash. Hence before one jumps on a payday loan no credit check offer, it should be determined if the expense for which the payday loan is being availed can be deferred or not.