More than 12 million Americans take out a payday loan each year. Borrowers spend more than $7 billion each year on these loans.
Payday loans don’t have the best reputation. This is understandable due to their relatively high fees.
In the right circumstances, though, no credit check payday loans can help you through a financial crunch.
Are you a good candidate for a no credit check payday loan? Read on to find out.
Understanding No Credit Check Payday Loans
You may be considering a payday loan because you’ve seen them advertised. There are more payday loan locations nationwide than McDonald’s locations.
These no credit check loans are small personal loans. Rather than paying off the loans gradually over time, like you would for a car loan, you pay off the loan all at once on the date of your next paycheck.
These loans are typically small. Some states have a maximum payday loan amount of $500. The typical loan amount for a payday loan nationwide is $350, according to the Consumer Financial Protection Bureau.
Payday loans with no credit check typically need to be repaid when you get your next paycheck. You might write a check for the loan amount when you take out the loan or the lender may automatically deduct the amount.
You may also have the option to renew, or roll over, the loan. This gives you more time to pay. Whenever you renew the loan, though, the lender will charge fees. Make sure you understand the fees involved if you choose to renew your loan.
The Benefits of a Payday Loan
Payday no credit check loans have several benefits. For example, they are typically paid out quickly. You may receive your payment on the same day that you apply or within a few days. Other types of loans take much longer to be processed due to the extensive credit check involved.
Payday loans are also convenient. You can apply for loans online and avoid leaving your house. You can also apply at one of the many brick-and-mortar locations. The application process is relatively quick and easy. You can typically complete the process in less than one hour.
You are also free to spend the funds on anything you need. A car loan can only be used to purchase a car. A payday loan doesn’t have any requirements, so you can spend it on car repairs, getting caught up on bills, or whatever else you might need.
Payday Loan Requirements
Payday no credit check loans have very few requirements attached.
The first requirement is that you are at least 18 years old, which is the minimum age to enter into a contract of any kind.
You also need to be employed and able to provide proof of your employment and income. The amount of your payday loan will be based on your income.
The final requirement is that you have a bank account. This is because the lender will require access to your account in order to cash a check for the loan or to automatically withdraw funds.
Good Candidates for Payday Loans
A good candidate for payday loans is someone who needs a relatively small amount of money. Traditional personal loans typically have a minimum of $3,000 or more. If you don’t need that much, a payday loan may be a more practical option.
A good candidate for a payday loan does not need to have good credit. In fact, there are payday short term loans for bad credit. Payday loan lenders usually will not even check your credit. They may run a soft credit check to confirm your identity, but this will not impact your credit.
Lenders look at your ability to pay rather than your credit history. If you have steady employment with a predictable income, a payday loan may suit your needs.
You also should be committed to paying back the loan as quickly as possible. If you extend or renew the loan, you will pay additional fees. If you paid $30 for a $200 loan, for example, you will pay another $30 each time you extend the loan. If you extend it three times, you will end up paying $120 in fees for a $200 loan.
This doesn’t mean a payday loan can’t work for you. It does mean that you should make every effort to pay it off as soon as you can, though.
What to Look for in a Payday Loan
When you are reviewing payday loan options, you will want to look for a few key pieces of information. You can find this information in your disclosure documents. These are forms that the lender provides you with when you apply for a loan.
The disclosure documents will say how much your fees will be. The fees are based on the amount of your loan. Pay attention to other fees, such as a late payment fee or overdraft fees. These can also increase how much you pay for a loan.
Applying for a Payday Loan
Applying for payday bad credit loans with no credit check is a simple process. You simply fill out an application with your lender and provide basic personal information, such as your name and address.
You will also need to provide information on your employment and your income. The lender will often verify this information.
Once they have confirmed your identity and employment, they will decide about approving you for the loan. If you’re approved, you may receive a check on the spot, or they may deposit money into your account within a few hours.
We Can Find a Solution for You
If you need a relatively small amount of money and you’re gainfully employed, no credit check payday loans may meet your needs.
At Bonsai Finance, we can help connect you with potential payday loan lenders. These lenders will review your information. They may also do a soft credit check.
You can compare your loan offers and decide about the right offer for you.
You don’t have to wait to get the financial assistance that you need. Contact us today to find the right lender for you.