No Credit Check Payday Cash Advance Loan

payday loans no credit checkWhen getting a payday loan you may wonder if they’ll be checking your credit report, and using that as a factor on whether or not to give you a loan. The short answer is that most places will not be using your credit history as a basis for making the decision.

To understand why your credit report is a non-factor, and why there’s typically no credit check when you apply for a payday advance, it’s important to learn a bit about the payday industry, how it came to be, and what it’s all for.

What Payday Loans Are
Payday loans are set up to provide people with a way to get money when there seemingly is no other way to get it. This would be for those that can’t get a personal loan from a bank, and don’t have a credit card with a balance on it to get them through a sticky financial situation.

Since it is set up as a last resort for those that have exhausted all other avenues, it comes with some rather steep interest rates that make you wonder how the CEO’s of these companies sleep at night.

What Payday Loans Aren’t
Payday loans aren’t a godsend, they aren’t a savior, and they aren’t a help by any stretch of the imagination. Payday lenders will try to paint themselves this way, but it’s a lousy PR job at best. Know what you’re getting into when you get a loan from them. They’re going to come out on top, no matter how things go. If you view them as a necessary evil, instead of falling for their spiel, you’ll at least know the score instead of being in the dark about the way things are.

Why No Credit Check?

Payday lenders know that your credit is probably not so hot, a mess even, that’s the risk they are taking by lending you money. If they ran credit checks and used the information contained in it to make a decision, they’d be out of business quick. They know who their target consumer is, and they play to their desires and needs. That’s why they stress how fast you get the money, and how hassle-free the process is. They also bring up the fact that it’s a very discrete and private transaction, so only you and they will know about it.

People like the idea of getting money fast, because they feel that it will provide them the instant relief they want from their financial burden. What they don’t realize is that they are not solving anything, but rather deferring the problem for a few more weeks, and making it worse by having to pay the loan fee on top of everything else that needs to be paid.

Why do other places check my credit?
Credit checks are usually done by places that are going to give you tangible goods. That’s why you’re not going to be able to buy a house, a car, or the latest HDTV on credit if you have a bad credit history. Tangible goods are a lot harder to collect on than cash. Payday loan companies have tons of money, if they end up losing some it’s no big loss, they’ll just make more. That’s why they don’t need to know if you have a strong history of paying back money, if you don’t pay they’ll do their best to collect, and if they can’t collect they’ll just move on with their business.

Hard goods, on the other hand, can get damaged, and can’t be resold once they’ve been bought and used. That’s why these companies are more concerned about you paying them for their merchandise, because there was a fixed cost that went in to producing the product, and those costs need to be met.

Why Do They Need My Social Security Number Then?
Even though your credit won’t be checked during the application process, they’ll definitely use everything in their disposal to try to get their money back if you don’t pay. They will report you to the credit bureaus at some stage, but also they just want a complete file on you, and your SSN comes in handy when trying to track you down. Some lenders, for sure Advance America, will actually send their henchmen to your place of employment and even your place of residence to hassle you about making your payment.

Importance of Having a Job
Your job is your collateral, and all that a payday loan company is banking on when they loan you money. They are counting on you having a job for the next week or two so that you can bring yourself back into their office and pay their whopping fee. If you don’t have a job you need to be able to show some other regular source of income, like a government payout.

You might have trouble if you’re self-employed, as you’ll need to bring in the last year’s tax forms to show that you actually make money on a regular basis. If you’re just starting out working for yourself, you’re pretty much out of luck. They don’t call it a payday loan for nothing, you have to show a pretty secure source of income on a specific date.

If you know that you’re job isn’t going to last until next payday, it’s probably not a good idea to take out a payday loan right before you get fired or quit. It might sound like a good idea, but these companies are savvy, and if they end up getting to the bank before you do, or if they’re able to directly debit your account, they’ll end up taking your last bit of money, and they won’t re-loan to you if they figure out you don’t have a job any more.

Consequences of Not Paying Back Your PayDay Loan
Just because they don’t use your credit history to determine whether to give you a loan, doesn’t mean they won’t report you to credit agencies if you fail to pay. Depending on the lender, they may immediately report you, or use it as a last resort if they fail to collect using other methods.

Many people think that there aren’t many consequences to not paying off a payday loan. The reasoning is that if your credit is already bad, it’s not very harmful to make it worse. Also, there are so many payday lenders that you can just abuse them one by one, collecting the money and not paying it back. Some people also make a villain out of the payday loan companies, and feel that they are playing the part of Robin Hood when they don’t pay a loan back.

As bad as getting a payday loan is, the companies behind them are not evil by nature. They saw a need and filled it. There’s no gun to people’s heads when they take out a loan, so these places are no more evil than casinos or places that produce low-quality goods. Plus, many states will track how many payday loans you have out, and will cap that number, usually at 2-5 so there’s a limit to how much you’d be able to get and then you’d be tapped and in a really bad way.

Surprisingly, there’s a very good return rate on the number of people that actually do pay their loans back on time. Many people realize that it’s their last line of defense before they hit rock bottom and things really start hitting the fan. Some lenders get a return rate of 95% or more, yet they say that their fees are so high because they are in the business of high risk lending. Don’t believe their lies. Their rates are high because people are willing to pay it.

Fixing Your Credit
You may be wondering why there’s a section on fixing your credit on an article about getting a payday loan with no credit check. But unless you want to find yourself in the same situation again and again, having to go to a payday loan company to borrow money instead of getting proper rates from banks and other lenders, then it’s a good idea to start taking steps to repair your credit now.

In the long run, your bad credit is costing you a lot, even though it might not feel like it at this moment. If you go through with a payday loan, you’re going to end up paying an exorbitant rate as these places are basically predatory lending, and taking advantage of your dire situation.

Take small steps now in order to repair your credit, so that you can get things like credit cards, bank loans, and even so you can show your friends and family that you can be trusted with money. In the future, this will pay large dividends as you no longer will need to scramble to find the cash you need in a crisis.

Alternative Ways to Get Cash
You’ve got to think creatively when it comes to finding quick cash in a time of need. If you’ve racked your brain and keep coming up with no answers, think harder. Maybe instead of loaning the money from someone, you can do some odd jobs, or provide some other service to work for the money. Are you good at a hobby or any type of work that someone would pay you for? You may find it’s easier to find extra jobs like this instead of depending on your one source of employment to cover your living expenses as well as the payday loan fees.

You should also plan your payday loan around a time when you know you’ll get a large lump sum, like at tax time. This way you can break the cycle of re-loaning the same money again and again, and finally be rid of the extra expense. That’s what makes March and April one of the better times to use payday loans.

Most people end up at a payday lender because they feel they’ve used up all of their personal connections, or because they’re embarrassed that they can’t manage their money correctly. Whatever the issue, it’s time to put those aside. There’s no point in paying through the nose for something as silly as pride.

Take a Long Term Approach
Emergency situations can seem like the end of the world, but you should take a breath and analyze things as objectively as possible. Making decisions and taking action from a mentality of panic and fear is rarely a good idea, especially when it involves money.

Take a longer view of things and realize that this tough time in your life will pass. Try not to exacerbate the situation by falling prey to a payday lender. And if you can’t see any other way out, try to limit the damage to just one loan, and make it your mission to pay it back without re-loaning it.

Add Your Own Thoughts to Getting Payday Loans with No Credit Check Below

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