Payday loans are no credit check loans. This means you need to provide some type of verification of your identity and employment. You need to have some form of identification, a social security card or proof of employment, as well as proof of income.
The verification you provide is what makes the loan no credit check. You can only be approved for a payday loan if your identity and employment are confirmed by the lender. Your bank account statement will usually be sufficient proof.
Once your identity and employment are verified, your loan is no credit check. You can apply for the loan however you would like. The most common way to apply for the loan is through a bank online.
After your loan application is approved, you will receive a check for the amount of the payday loan. The check must be cashed within the next three business days. This is typically done in person, though you may also be able to do it online. Cash advances are usually only good for the next payday, but you can use it for anything you like.
There are many different benefits to a payday loan, which include instant approval, no credit check, and no paperwork. However, there are some disadvantages to the payday loan as well.
One of the downsides of a payday loan is that, if you do not provide any type of identification or employment verification, you will be denied. This could be because of your identity or your employment verification is not up to par. The lender can deny you at this point.
Another disadvantage is that, you cannot borrow money if you have an existing debt. Most lenders who do not require a credit check will report any unpaid debt. The lender will report any debts that are current but unpaid at the time you applied for the loan.
If you fail to pay your loan on time, you could end up with more interest. The lender can use this to increase your loan fees. There is not much you can do about this once the loan is granted.
Another disadvantage of a payday loan is that the credit limits are very low. Typically, the credit limit is between $200 and $300, depending on the company and how many of the loans they issue. These companies tend to have very small loans available.
Many people who have bad credit are also turned down for this type of loan. Lenders will only consider lending to people who have a score at least as high as their credit score.
While there are some companies that do not require a credit check, these are the companies that will want to see documentation of employment and identification. This is the reason why many payday loan companies offer the no credit check service. When you’re applying for a payday loan online, all you need is proof of employment.
Because there are many advantages to the payday loan, there are also many disadvantages. If you do not meet the criteria for the payday loan, there are other options that are available.