One of the best features about payday loans is that they are no credit check payday loans. This opens up borrowing cash to just about anyone, regardless of past credit history. It is a good option for those who have had previous credit problems or who have a poor credit history. It is necessary for most people who want to get payday loans to have an active bank account, show proof of regular income, and be an adult.
The payday loan industry is not regulated by the government in the same manner as regular financial institutions like banks or credit unions. They can charge extremely high interest rates, virtually whatever they want to charge. This does not matter to someone who needs money fast for an emergency medical bill or car repair. On a typical loan until a next payday, the interest fee runs between 15% and 25% on average for a cash advance payday loan. Looked at on an annual basis, this could be in the hundreds to thousands of percent for the loan.
There is no credit check, but the payday loan industry does have their industry check system. If you have previously defaulted on a payday loan, you most likely will be denied another. At some lenders, if you had to make a payment plan to settle out and pay off a previous payday loan, they keep records and will not extend you another loan. This makes sense because the types of loans they make are high-risk loans that are taken out by people who have a history of not making payments. For the higher risk they take, payday loan businesses charge very high interest rates.
This industry is obviously thriving and popular; there are payday loan stores everywhere around the country. Millions of no credit check payday loans are made each day, 24/7, including over the Internet. Many who use payday loans find that they must continue to use payday loans every month. A poor money manager, someone who is experiencing a work shortage, or those who cannot budget or pay bills in a timely manner continue the bad habit of taking out repeat loans again and again. This can be a difficult trap to get out of, and for this reason the government has placed some limitations on the number of concurrent payday loans people may take out in some states.
No credit check payday loans do serve a welcome purpose to many borrowers. It is a money maker that is backed by some of the same financial institutions who are unable to charge high interest fees for the loans they make in their regular banks or credit unions. Those who use this service enjoy having it available, especially in an emergency. There are positives and negatives to no credit check payday loans; the borrower must decide if the fees are worth the expense. The other option for those borrowers is to either locate additional income to pay their bills, learn to manage their money better, or to find loans at a better rate.
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These loans are true loans, with no collateral. There is no need to fax information to the online lenders in most situations. No credit history is required, there is no reporting of your activity to credit bureaus, and no one checks your credit. Your loan is backed by your check, or the ACH withdrawal approval. If you default on your loan, it will be treated just like a bad check. This will also probably prevent you from getting any future loans.
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