You suffered a financial emergency or the holidays drained your bank account. Now you don’t know how you are going to make your monthly payments.
Maybe a lender denied your personal loan application or you know your credit is less than pretty. You may think there isn’t a way out. But, you have other options besides extreme methods such as debt counseling or filing for bankruptcy.
Have you heard about online loans with no credit check? You might be thinking twice about taking this loan because you aren’t sure if you may qualify. Don’t worry about it.
We’ve got you covered. We’ll tell you all there is to know about online payday loans with no credit check and what makes you an ideal candidate for approval. Read on to learn more.
Online Loans With No Credit Check: Are They Right for You?
Legitimate payday loans online with no credit check are a great alternative when you need easy and fast funding. These loans can help you improve your finances or keep up with unexpected financial emergencies.
You may think your lender won’t approve your online loan due to prior bad experiences. Yet, you should keep in mind that when you apply for these loans lenders take an alternative look at your finances. They won’t put you under the same scrutiny as when you apply for a traditional personal loan at your local bank.
Remember that your payday loan lender won’t pull your credit. They will take a look at your monthly income, financial needs, among other factors. It’s recommended to contact your lender for more information regarding their approval metrics.
Are you still thinking twice about applying for legitimate payday loans online with no credit check? Not sure if you qualify for these loans? Here are 10 things that make you an ideal candidate for approval:
1. You Need Money Fast
No credit check loans provide fast funding. If you are on the verge of missing your payments, these loans can help you pay your bills on time and prevent any damage to your credit.
The typical application and processing for this type of financing are lightning fast. Some lenders offer approval as soon as a few hours.
After approval, the lender may deposit your funds in 24 to 48 hours. These terms may vary on a lender basis.
Some financial institutions even offer same day funding for online loans. It’s recommended that you consult your lender before applying to learn about their disbursement policies. If you need funding in no more than 48 hours, don’t look anywhere else because payday loans are the way to go.
2. Your Credit Score Is Less Than Pretty
If a lender denied your loan or you have made a late payment, you know your credit is less than pretty. Your credit score might be the reason why you are considering a no credit check loan. Having poor credit or even having no credit at all shouldn’t stop you from covering your financial needs.
When you apply for this type of financing, your lender won’t pull your credit. Some lenders may conduct a soft check but, that won’t lower your score. Keep in mind that these financial institutions take a look at the big picture.
They want to learn if you can pay them back. Your potential lender will ask for other information to confirm your repayment capacity without focusing on your prior credit history. They understand that you want to get your finances on the right track.
Lenders may not pull your credit but, they may report your payment history to the credit bureaus. Your payments are one of the most important factors credit agencies take into consideration when calculating your credit score. Taking legitimate payday loans online with no credit check can put you on the path toward credit rehab and financial freedom.
3. You Are 18 Years or Older
To apply and get your payday loan approved, you must be 18 years or older. Your lender will require you submit proof of your identity to confirm your age. You may meet this requirement by submitting a copy of your legal ID.
Keep in mind that they may ask for other supplemental proof of identity documents. Some examples are copies of utility bills, social security card, passport, among other documents. The lender will ask for this evidence to verify your identity and protect consumers from identity theft.
4. You Earn a Steady Source of Income
When a lender processes your loan, they look at your finances to learn more about your repayment capacity. One of the most important factors is your monthly income. How much are you earning?
Is it from a full-time, part-time or contract job? These are some of the questions they may ask about your monthly earnings. Your lender will request proof of your income.
Some examples of documents you may submit to prove your income are pay stubs, W-2, tax returns, among other acceptable evidence. Your lender may provide more information about what documents they accept as proof of income.
5. You Can’t Put Down Collateral for a Personal Loan
Did you apply for a personal loan? If you did, your lender might’ve asked you to put down assets in collateral in order to approve your loan.
You are trying to consolidate your debt or pay for a financial emergency. Chances are you don’t have enough money or assets to secure a personal loan.
A legitimate online loan lender won’t ask you to put down any collateral for approval. Your lender focuses on your repayment capacity, not your assets.
6. You Own a Checking Account
You may think receiving a steady income is enough for approval. Yet, owning an active checking account is a must to get your loan approved. Your lender will ask you to provide the routing and bank account number during the application process.
You might be asking yourself but, why do they need this information? Your lender needs this information to deposit your funds and withdraw your monthly payments. It’s recommended that you submit a checking account you use actively.
Also, you should make sure to keep your account funded. You don’t want to damage your credit or incur in fees due to late payments. Not owning a checking account shouldn’t stop you from getting the right loan.
You can fix that by visiting your local bank or even opening an online checking account. Consider consulting your potential online lenders. Some of them may offer checking accounts.
7. You Can’t Get a Home Equity Loan
As a homeowner, you may have heard about home equity loans or second mortgages. If you own a house, you may be eligible for this type of loan. A home equity loan is an installment loan borrowed on the equity value of your house.
The lender limits the loan amount to the difference between your home equity and the property fair market value. If you haven’t applied for this type of financing, you may think your lender may approve it. But, there’s a chance your credit score isn’t that great or you don’t have any equity available on your home.
Either way, your lender won’t allow you to take a home equity loan. When you apply for this loan, your lender will conduct a hard pull of your credit.
Hurting your credit and risking your home isn’t worth it. Online payday loans with no credit check won’t damage your credit and will keep your home safe.
8. You Want a Fixed-Rate Loan
Are you sick of paying variable or high-interest rates on your credit cards? Yes, you may find credit cards that charge a fixed rate. But, they aren’t that common and won’t provide immediate funding after approval.
If you are stuck with a variable rate credit card, your lender may be charging the prime rate plus an additional percentage for financing. The prime rate is the credit rate a financial institution provides to their consumers based on their credit. The Federal Reserve Bank controls interest rates in the United States.
The Fed announced the fourth hike in interest rates this year. If you are barely making your payments, you should get ready for an increase in your financing charges. Most of all, if your lender is charging a variable interest rate on your credit card.
If you aren’t sure about your financing charges, you should read the credit card agreement or contact your lender for more information. Keep in mind that if you decide to apply for a credit card instead, your lender will conduct a hard pull of your credit and lower your credit score.
When you take a no credit check online loan, you will pay a fixed rate for your loan amount. If you want to get your finances on track, taking an online loan will help you consolidate your credit card debt and pay fewer finance charges in the long run.
9. You Can’t Borrow from Your Retirement Savings
If you have a job, chances are you own retirement accounts such as IRAs and 401(k)s. The purpose of these accounts is to prepare for retirement. But, desperate times call for desperate measures.
You might’ve considered borrowing from these savings to meet your financial needs. But, you may be thinking about it twice because they will charge you a penalty for early withdrawal.
The typical penalty is 10 percent of the withdrawal amount if you are younger than 59 1/2 or 65 years depending on the type of retirement account. Taking an online loan with no credit check is a cheaper way to meet your financial needs while protecting your retirement savings.
10. Your State Allows No Credit Check Online Loans
Payday loans aren’t legal in all states. Yes, you read that right. There are five states in the United States that prohibit payday loans.
You may not apply for a no credit check loan in the states of Arizona, Arkansas, Georgia, New Mexico, and North Carolina. Also, the District of Columbia prohibits this type of financing. Your state may impose a limit on the amount of funding you may receive.
Regulatory loan amount limits range from 50 to a 1,000 dollars. These limits vary on a state basis. Yet, there are states such as Wisconsin, Utah, Wyoming, and Maine that don’t impose limits on your funding.
States such as Illinois, Nevada, and Washington impose a loan limit or percentage threshold depending on your monthly income. In the state of Nevada, the loan amount limit is no more than 25 percent of your monthly income. In contrast, Illinois limits your loan amount to a 1,000 dollars or 25 percent of your monthly income whichever is less.
In 2017, 16.8 million Americans were victims of fraud. Fraudsters used about 4.2 percent of this information for loan fraud.
No one is exempt from falling victim to a scam. That’s one of the many reasons why you should confirm if this type of funding is legal in your area before applying for any loan. This verification is one of the many ways to confirm your payday loan is legitimate and secure.
Should You Apply for an Online Loan with No Credit Check Today?
You should consider applying for online loans with no credit check today. Most of all when you meet all the requirements of an ideal applicant. Before applying, it’s essential to take a look at your finances.
What are you going to use your loan for? Will it help you get back on track? Does the loan provide the funding you need?
These are some of the questions you should ask yourself before applying for your loan. Each lender has their own approval metrics and requirements. Before submitting an online application, you should research several lenders and their basic loan requirements.
Most online lenders list them on their website. Also, many lenders list the possible loan amount you may be eligible for.
Keep in mind that they may not approve the amount you request even if it falls within their loan amount range. If you can’t find this information on their website, don’t hesitate in contacting them to learn more about their financial offers. Before sending your application, make sure you meet their basic requirements and gather all the documents you must submit for approval.
For most applicants, online payday loans provide a safety net when they are short on cash or suffer a financial emergency. You should take these loans when you need them the most. Don’t make it a habit.
Are you considering applying for an online loan? Want to make sure you secure the right financing to meet your financial needs? Read our article to learn helpful tips to secure your online loan today.