Which Type Of Lenders Offer Payday Loans With No Credit Check?
Payday loans with no credit check are offered by check cashing agencies, subprime lenders and payday lending stores. Many of these companies operate their business through Internet. The no credit checking cash advance loans that all such companies offer come under various tags, such as no fax payday loans, cash advance with bad credit, no verification pay day loan and so on. During festival seasons, you might also come across the same loan programs under different names that might include Christmas payday loan, vacation pay day loan, festival-special payday loan and others. In reality, there is nothing special with them; lenders name them differently just to attract their target customers. Regardless of how a payday lending program has been named, they are all similar in basic loan terms and other provisions.
Payday Lenders Check Your Teletrack Report, Not Credit Report
Payday lenders that advertise their lending programs as “payday loans with no credit check” do not
offer anything special. Unlike conventional lenders, no payday loan companies ever check applicants’ FICO score or credit report. They instead check your Teletrack reports that are prepared and maintained by an agency named Teletrack. This agency provides various other services also to payday lenders. For example, they help them verify the details submitted by you in your payday loan application, such as about your employment, residence and bank account. That is the reason why payday lenders manage to take a decision regarding approval so quickly. With the help of Teletrack, they can do the verification without even needing you to give a call or without even giving you a visit at your home or office.
What Does The Laws Say About No Credit Checking Cash Advances?
There are no special laws for payday loans with no credit check. The usual payday loan laws that are applicable in your state apply to these types of loans also. Therefore, you must not get confused with the varying names that payday companies use for their lending programs.
Are No Credit Checking Payday Advances Cheaper Than Other Payday Loans?
The cost of payday loans with no credit check may vary from one lender to another, but they are usually as costly as any other payday loan can be. The interest rates that are charged on these loans
Approval Of Payday Loans To People With Bad Credit
Since payday lenders do not check credit score of loan applicants, you might wonder how they recognize people with bad credit. The answer is that they do not need to. Even if you have bad credit, you can still qualify for the loans. Unlike conventional lending, payday loan companies never penalize you for your bad credit score; they charge the same rate of interest to all borrowers. But, the interest rate on payday loans with no credit check is already extremely high. If you have bad credit, it most probably means you are already having difficulty in paying off your exiting debts. Therefore, in such situations, it is never a wise idea to borrow a new loan, that too, at an extremely high cost.
The Truth About Due Date Extension
It is true that payday loans with no credit check can be an easy way to get the money you need to meet your temporary expenses of urgent nature, but after a couple of weeks, when you will have to pay back the loan, you will again find yourself in a very difficult situation. At this point, you may feel tempted to opt for due date extension, which is a feature that payday lenders never forget to mention in the advertisements for their loan programs. Though at the first look, it might look like a very convenient option for those who need more time to repay their loans. But, in reality, it is more a debt trap than a convenience. You should not forget that you will be charged additional interest plus various other charges at the same high rate for the extended period of time. It means if you borrow $300 and are supposed to repay $450 on the initial due date, the eventual outstanding debt balance after one month of due date extension can be somewhere around double of the initial principal amount.
Overall, payday loans with no credit check are just like any other payday lending program and they carry all those risk factors that such programs are notorious for. Therefore, you must do your research and
calculations thoroughly in advance before you sign up for these loans. Even if you have bad credit, there can be several better alternatives available for you, such as a credit card cash advance, advance from your employer or simply a short-term loan from a conventional subprime lender.
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