What are Payday Loans with no credit check?
The name speaks for itself. Payday Loans with no credit check is a type of lending where the lender provides financing regardless of the previous credit history of the borrower. Oftentimes, people with poor or bad credit history want to get a Payday Loan without a credit check so that the application is approved as quickly as possible.
Such loans are popular because borrowers with bad credit cannot get a loan from a bank or credit union. However, now there are many payday lenders who are willing to provide a loan even if the borrower has a bad credit history. While a Payday Loan with no credit check is most often an expensive decision, for many borrowers it is the only option that helps them cope with a difficult financial situation.
What types of loans do not require a credit check?
If you find yourself in a difficult life situation and you are looking for a loan for a bad credit history, then first of all it is worthwhile to understand what type of loan you need. Often, loans that do not require a credit check are short term and must be paid off on the day of your next paycheck.
The most common example of a short-term loan with no credit check is a Payday Loan. Also, sometimes Installment Loans do not require a hard credit check either. If you have a car you can apply for a Title Loan. Since this loan is secured, you must transfer the title of the vehicle to the lender at the time the loan is repaid. Thus, since you are providing collateral, the lender often does not do a hard credit check. Also note that Personal Loans also do not have strict eligibility criteria.
Also, some lenders offer Student Loans and Auto Loans without a hard credit check. However, you will have to face high interest rates and not the most favorable lending terms.
What is a soft credit check?
You probably know that there are both soft and hard credit checks, but many people do not know the difference. A soft credit request is a request that does not count towards a person's credit rating. Thus, it does not affect your credit history. Often, many online lenders do exactly a soft credit check before approving a loan application.
Typically, a soft credit check is used to evaluate a credit report. It is, of course, better if your lender performs a soft credit check instead of a hard one.
What is a Hard Credit Check?
A hard credit check is a check that stays in your credit and can worsen it. Banks and credit unions often do a hard credit check when they check your creditworthiness as they need a guarantee that you can repay your debt on time. Thus, they look at your credit score and credit history in order to decide whether to approve you a loan or not.
Is it possible to get guaranteed Payday Loan approval with no credit check?
Often online lenders advertise their clients offering guaranteed Payday Loan approval. Guaranteed approval means that your application will be 100 percent approved. However, you probably understand that this is impossible.
There is no such thing as guaranteed approval as this is risky for the lender. No lender will offer you guaranteed approval as they often look at your credit history, income information, personal details, and more to make sure you can repay the loan. Thus, they do not offer 100 percent approval as not all people can repay the loan.
You can find lenders on the internet who say they approve over 80% of applications, but it's worth knowing that they often charge exorbitant interest rates to offset their risks.
So, before applying for a Payday Loan without a credit check, remember that there is no such thing as guaranteed approval. If you saw such an offer, most likely they are scammers. The lender will in any case ask you to provide information on income in order to approve your application.
Is it possible to get immediate approval for a Payday Loan with no credit check?
Since the application process for a Payday Loan is simple and fast, you are guaranteed to receive approval the same day you applied. Thus, you definitely do not have to wait a few days. Often, applications are approved almost instantly, in some cases you will have to wait from 2 to 5 minutes.
Who is eligible to apply for a Payday Loan with no credit check?
Almost anyone who needs emergency funding to meet their paycheck needs can apply. However, in order for it to be approved, it is necessary to meet the requirements of the lender.
Often the eligibility criteria vary by lender and state law, but the main ones remain the same. In order to be approved, you must be a US citizen or an official resident who is over 18 years of age. Also, your monthly source of income is a major factor in your approval. You must be employed in one place for at least three months. You must also have a permanent residential address and provide the lender with government issued ID and contact details such as telephone and email.
Is it difficult to get a Payday Loan with no credit check?
If you want to get a loan from a bank or credit union, then you must understand that you cannot get approval without a credit check. Also, you will not be able to get a loan from a bank with bad or poor credit history.
However, if you go to an online lender, you can get Payday Loans without a credit check. This will often not be difficult if you meet the basic lender criteria.
Can I get a Payday Loan with no credit check on the same day?
Generally, you will be able to get your application approved the same day you submitted it, but the payment will be made to your bank account the next business day. Some lenders may also give you money the same day you apply.