The concept of instant payday loans is to provide you with fast access to cash during unexpected expenses that occur when you are in between paychecks. However, they work slightly differently from traditional loans because you get approvals faster, especially on working days and hours.
Disclaimer: Even with all this, we must make it clear to you that we do not lend credit, neither do we take any credit decisions or loans. We are not affiliated with any lenders or brokers, and therefore we are not responsible for the actions of any lender towards you.
Why is it hard to access credit without having a bank account?
The reasoning is simple. Lenders are afraid that you will not pay them back. Do not mistake credit loans without checks as less of a worry. The lenders still need assurance that you will pay them back. They do this in several ways, which we will outline in this article.
Because instant payday loans are unsecured, they are not attached to any collateral. This means that they are only reliant on your promise to pay the loan. The good news is that processing of requests usually takes a short time, thanks to it being largely online.
Is it safe?
Instant payday loan costs
Because instant payday loan lenders do not deal in collateral, they are dealing with huge risks of not getting repaid, resulting in higher rates than usual. This is the main downside of the convenience that they offer.
The rates may not seem costly since the lender will charge a flat fee for loans lasting two weeks. However, when you compare it to other options of loans, you will realize that the price is higher. To put this in perspective, many credit cards have APR (Annual
Percentage Rate) of 15% on average, but payday loans reach up to 365% on average.
Rollover costs of instant payday loans
The good thing about instant payday loan lenders is their extensions of the due date for paying your loan. This may save you from a situation when the two weeks pass in a blur and you are unprepared to repay the amount you borrowed because of the costs piling up.
The earlier you pay your instant payday loan, the better it is for you since you pay less and the chances of you sliding into unmanageable debt will be low.
Possible benefits of payday loans without credit checks
- You do not require a stellar record of credit scores
- The processing of the transaction is instant, especially if you are borrowing money on working days and in official working hours
- You do not need collateral
- It is more convenient than traditional borrowing
- It is a fast source of funds and maintains confidentiality
- It is a quick way of solving emergencies
User confidentiality is particularly important in taking payday loans without a bank account or credit check. One does the application online, and the decision for lending to the borrower is made instantly. There are also strict laws in place that protect the personal information of the borrower.
It is convenient as well since you do not need to submit extra fees for application processing, while the acceptance rate for loans is very high. The lender also does not need extra information from you regarding the loan.
How can you use payday loans?
They can be useful in several ways, such as paying unplanned bills, emergency use, groceries or even other uses such as paying rent.
Things to remember when borrowing instant loans
- As much as possible, avoid the cycle of eternal debts. Maintain a sense of wisdom concerning your financial state. Stay away from the temptation of borrowing more than you can pay back immediately, and do not harbor false expectations about your income source.
- Ensure that you check and verify the laws of your state regarding the issue of payday loans, since there may be restrictions on the amount of money that the law allows you to borrow. Do this before settling on the services of a lender. This will enable you to get loan amounts that you have planned ahead. It also guards you against unscrupulous lenders. In the case that you get a lender that offers you amounts that are higher than the loan limits of your state, you can conclude instantly that the lender does not have a proper license, and avoid using their service.
- Before you sign your contract with the lender, make sure you read and understand all the points. If you do not understand something, consult them. This is a way to protect yourself. You need all the information you can get about them for your sake.
Some people view the concept of payday loans skeptically, and they may not be the best solution to financial emergencies. However, you cannot undermine their importance, especially for individuals who cannot access traditional loans due to their credit scores.