In a financial crisis, it’s hard to know where to turn.
You need money, but it can be awkward and humiliating to turn to family and friends.
Payday loans with no credit check may be the financial solution you need. You can get a small loan that you repay when you get your next paycheck.
Read on to find out how payday loans work and whether they’re a good solution for you.
What Are Payday Loans with No Credit Check?
According to the Consumer Financial Protection Bureau, payday no credit check loans are small loans, often for $500 or less, that are due to be repaid on your next payday.
You can often qualify for payday loans with no credit check. Instead, you provide the lender with proof of your income and employment. The lender decides on how much you qualify for based on your income.
Lenders may issue you a check, make an electronic deposit into your bank account, or they may provide you with a prepaid debit card loaded with funds.
You typically pay a fee for the loan based on the amount you are borrowing. The interest rate is typically higher than what you would pay for a credit card because the lenders offer guaranteed loan approval, no credit check required.
The lenders charge higher fees to offset the risk they are taking by not checking your credit.
You may be required to pay back the loan on your next payday. Many payday loan lenders will also give you the option to “roll over” the loan. This means that your loan isn’t due until the following paycheck.
When you roll over a payday loan, you essentially start a new loan. You pay the loan fee again so you can get the extension.
For example, your lender may charge you $45 to borrow $300. You decide to roll over the loan, so the lender charges you another $45. This means you end up paying $90 to borrow $300.
The cost is high but being able to obtain a loan quickly and easily regardless of your credit history may be worthwhile.
When Is a Payday Loan a Good Idea?
If you have a credit score that is less than stellar, obtaining a more traditional loan may be a challenge. Banks and credit unions may also have a higher minimum loan amount than you need. Some will only issue loans for $3,000 or more, for example.
No credit check payday loans may be a good idea if you only need to borrow a relatively low amount of money. Some states, like Kansas, limit the payday loan amount that you can borrow to $500. Other states will offer higher loans up to $1,500 or more.
You should also be confident that you can repay the loan on your next payday, or as soon as possible after that. The fees can add up quickly if you keep rolling over the loan.
For example, if you paid $45 to borrow $300 and you roll it over three times, you end up paying $135 to borrow $300. That’s almost half of the amount you borrowed in the first place.
Where Can I Find a Payday Loan with no Credit Check?
You can find payday online loans with no credit check needed. You can also find brick-and-mortar locations near you.
Although payday loans are similar, each company has its own policies and interest rates, which you should carefully review.
What Should I Look for In a Payday Loan?
When you consider payday loan offers, you should review the forms carefully. Payday loan lenders provide lengthy disclosure documents. Take the time to read and understand the documents, and don’t be afraid to ask your lender questions.
Make sure you have a clear understanding of the fees. Most lenders base their fees on how much you borrow.
Also, make sure you know the deadline for repayment. Some lenders will automatically roll over the loan unless you tell them you are planning to make a payment. Many lenders will also automatically deduct the loan from your bank account.
You should also look for penalty fees. Most lenders will charge a fee if your account is overdrawn, for example. This can make your loan even more difficult to pay back.
How Do I Apply for a Payday Loan?
To apply for a payday loan, you will need to fill out an application either online or on paper if you’re at a physical payday loan location.
The application will ask for your personal information, including your name, birthdate, address and the name of your employer. They will also ask how much you are paid each paycheck and how often you are paid. This will determine the amount of your loan as well as when your payday loan will be due.
The lender will confirm your identity with a photo identification and have you sign disclosure notices. Make sure the information on the disclosure forms is accurate.
Payday loan lenders typically do not do a hard credit check. They may do a soft credit check, but this does not impact your credit.
Once you are approved, you will receive the funds, which you can use in any way you wish.
As your due date for the loan approaches, make sure you will have the fund available to repay the loan. If you suspect you will be short, contact the lender to determine your options.
Let Us Help
A payday loan can be a convenient way to deal with financial emergencies. Whether you’re dealing with an emergency car repair, an unexpected tax bill, or a medical issue, these small loans can help you get through.
At Bonsai Finance, we can help you find payday loans with no credit check. You can contact multiple lenders with a simple form.
The lenders will ask for basic information and let you know whether or not you are approved. They may be able to send you money quickly.
We’re here to help you through your financial challenges. Contact us today to find out how we can help.