For people with bad credit a no credit check, a payday loan is a great option. There are a number of things that can happen that cause a person’s credit to go bad, and many times it’s no fault of their own. Banks don’t really care, they basically go off the credit report numbers and this makes it extremely hard for the individual to get any sort of financing. So, lets find out what it takes to get a approved for a payday loan.
Payday Loan Qualifications
There are three basic qualifications for payday loans:
- Applicant has to be 18 years or older.
- Generally has to have verifiable income making $800.00 a month or more.
- Generally needs a checking account.
Bad Credit OK: Bad credit, or even no credit, is what attracts most people to payday loans. They don’t have to worry about credit checks or any of these verifications. In fact, taking out a payday loan will help your credit rating. These loans are recorded on your credit reports and can boost your credit score as long as you pay the loan on time.
How Does The Process Work?
You can either apply online or at your local payday office. Since the qualifications are simple, so is the application process. It takes about 20 minutes to fill out the application. From there the loan center will verify your information. Once this is done your application will generally be sent to a network of lenders. The payday lenders will send their offers back to the loan officer, and from there the officer will present all offers to your for a final selection.
Direct Lender: If you’re looking for a little quicker response time, then a direct lender would be your option. Direct lenders handle the process from beginning to end. Some people think these lenders offer better rates compared to the network, but in general the interest rates are comparable.
Interest Rates: Payday loans are considered “short term loans.” The interest rates are high because of the risk factor. This is one reason there are no credit checks – it’s because they compensate by bumping up the interest rates.
You never know when you might need quick cash, and this is where getting yourself established is a good idea. You can apply for a payday loan for as little as a few hundred dollars. We suggest you start here and pay the loan back in a few weeks per contract. Now you have established an account and can take out another loan for a higher amount. At this point you’re in good standing with the lender, and the next time you need a more substantial loan you’ll have no problem getting it.
As you can see it’s not that difficult getting a no credit check payday loan. Payday loans are great options when you need money fast, and you don’t have to worry about having bad credit. Don’t forget the other benefit – improving your credit score.
Find a loan company, put in an application, and get yourself established. Medical emergencies, your car breaks down, any number of things can happen, and knowing you can get money fast will put your mind at ease.