Payday Loans With No Verification – Easy, But Extremely Costly
Payday loans with no verification are very easy to obtain, as there are many lenders out there in the market that offer such lending programs. But, it is very important for you to understand that these types of loans can prove to be extremely costly for you. Therefore, you are advised to look into the pros and cons of such pay day cash advances thoroughly before you sign up for it.
Difference Between “No Verification” And “Verification Loan”
All conventional loans as well as many other types of payday loans are not approved without verifying the information supplied by the applicants. Applicants, in such cases, are asked to fax certain documents as proof of credit history, income and residence. On the other hand, payday loans with no verification do not require you to provide any such proof. They just require you to fill out and submit a simple 2-minute application form. If you are applying through Internet, you can send your application online. Alternatively, you can visit a local payday loan store and submit your application manually. As it is quite evident, payday lenders take a much greater risk when they approve loans without doing any verification. That is the reason why they charge a much higher rate of interest as compared to the rates charged by conventional loans. Where the rates charged by conventional loans usually range from 8% to 16% per annum, rates charged by no verification payday advances can range from 290% to as high as 1980% per annum.
Teletrack Services For Payday Lenders
When you apply for payday loans with no verification, you do not get any phone calls or visit by a representative from the lender as part of the verification process. But, payday lenders still take certain precautions to make sure that you are at least employed and that the information provided by you is correct. They do this by availing Teletrack services. Teletrack is an agency that works like credit bureaus and maintains records of financial activities of consumers. Payday lenders check your Teletrack reports and if they are convinced that you are not a fraud, only then the loan is approved to you. Therefore, if you are attempting a fraud by supplying false information, your application is very much likely to get rejected.
Do Your Calculations Wisely Even In Desperate Times
Financially emergency can hit anybody anytime. That is the reason why it is always ideally advisable to maintain an emergency savings fund always. If you do not have that and if you desperately need to borrow instant money, payday loans with no verification may look like the only option available for you. But, you are still recommended not to listen to your temptations. Take some time to do your calculations
and find out whether you can afford the extremely high cost of these loans and whether you can pay it back in time based on
your monthly income and other financial obligations.
There can be various cheaper and safer alternatives to borrow quick money. You are advised to look into your options thoroughly before you go for payday loans with no verification.
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