In the USA, around 12 million Americans rely on payday loans to manage their unexpected expenditures. In real-time, such short-term loans appear like a life saviour for several individuals who find themselves in an unexpected debt cycle before the salary day.
Not just this, those having bad credit scores in the profile are frequently attracted by legitimate payday loans with no credit checks. They fulfilled their purpose of arranging small yet much-needed cash to handle uncertain expenditures. Most importantly, people have the liberty to get a loan despite undergoing a cumbersome credit check.
In general, you find all the common things attached with payday loans online same day, especially regarding the amount offered, duration, documentation, and eligibility criteria. But only a few get inside details of this unsecured loan offer. So, here, we will be providing some additional details related to payday loans offered by legitimate lenders and that too for bad credit holders. Let’s Get Started.
Why Do People Apply for Payday Loans?
It’s not just about turning to legitimate lenders to apply for payday loans. In fact, many people do not have an option to arrange short-term fash cash. Turn to this financial offer during to having a volatile income, unexpected emergency, or low wages at hand. It can be the bridge to overcome small income shortfalls and handle the issues in a hassle-free manner. Although, it cannot fully solve the financial emergencies of people, still, get much-needed support, especially, to get rid of small uncertain expenditures.
Legitimate Option for Bad Credit Holders
Now, comes to one of the main factors of applying for legitimate payday loans no credit check. You need not face the hassle of facing consistent loan rejection due to having imperfect credit scores.
Direct dealing with legitimate lenders allows you to get approval in no time. It is due to the fact that direct payday lenders have nothing to do with your past credit mistakes. They only care about you being a regular salaried employee, a permanent citizen of the US, and having proper documents with you.
Rest depends on you as to how you utilize the loan amount either to square off the pending list of expenditures or settle the score with credit card dues to improve your credit scores.
How to Fix Bad Credit into Good with Payday Loans?
When it comes to applying for legitimate payday loans no credit check to fix off your poor credit ratings. You have a good chance of making your financial position better.
What you can do is settle the dues to improve the ratings and then settle the loan. After that, you can opt for another no credit check loan to fix off the pending dues with time to finally see a game up in your credit profile.
So, in simple words, a payday loan is not just a way to arrange fast and short-term cash. But also an opportunity to turn bad into good likes favoring your credit ratings on the higher side.
APR on No Credit Check Payday Loans
Despite all the positive things attached with legitimate payday loans no credit checks, there are a few precautionary measures to be kept in mind. One of them is checking the Annual Percentage Rate (APR) that could trap you in a lengthy debt cycle.
To help you better understand this, let’s take an example. Suppose, the lender charges 400% APR on a loan amount of $2000. So, you need to pay $667 monthly to square off the loan. It means this will be five times more or $549 more than the $118 that you might pay at the end.
Also, important is to check your credit ratings first before applying for the loan that could change the impact of APR on your total owned amount.
|Credit Score||Example APR||Monthly Payments||Total Payments|
|No Credit Check Required||400%||$667||$16016|
State Regulations of Payday Loans
Not just credit ratings, but state laws in the USA also differ in terms of calculating the loan amount. Since there is no clear definition of what constitutes a payday loan, state law matters a lot. So, refer to the below-mentioned table where you will find the 14-day loan at 10% interest translates to 260.71%.
|State||Financial Charges||Maximum Loan Amount||Loan Term|
|Alabama||Not more than 17.5%||$500||10 to 31 Days|
|Alaska||$5 fee. Financial Charges that do not exceed $15 or less for every $100 advanced, or 15% of the total advance||$500||Minimum 14 days|
|Arizona||Payday loans are not legal here|
|Arkansas||Payday loans are not legal here|
|California||15% of the face value of the check||$300||Up to 30 days|
|Colorado||Not exceeding 20% of the first $300 and an additional 7.5% for any amount in excess||$500||Minimum of 6 months|
|Connecticut||Payday loans are not legal here|
|Delaware||No limit||$1000||Less than 60 days|
|Florida||Not exceeding 10%||$500 for the face value of the check||7 to 31 days|
|Georgia||Payday loans are not legal here|
|Hawaii||Not exceeding 15% of the face value of the check||$600||No restrictions|
|Idaho||No restrictions on fees||25% of the borrower’s gross monthly salary or $1000 whichever is less||Maximum of 37 months for loans over $300 maximum of 25 months for loans less than $300|
|Illinois||Not more than $15.50 for every $100 borrowed||$1000 or 25% of the gross monthly income||Minimum of 13 days|
|Indiana||Not more than 15% for less than $250. 13% for $250 to $400, 10% for $400 to $605||$605||Minimum of 14 days
Avoid Pitfalls of Payday Loans
With so many payday loans borrowers available these days, it must be difficult for you to find the legitimate ones. And, often fall prey to the hands of predators. Therefore, you must avoid such problematic pitfalls by referring to the below-mentioned points.
* Beware of Unlicensed Lenders: As already mentioned about only dealing with legitimate lenders. There might be a chance that you come across an unlicensed lender and fall prey to the same. So, avoid such encounters by looking at the licensed practice of the lender before applying for the loan.
* Stay Away from the Payday Loan Middleman: Sometimes while searching for payday loans with no credit check, you come across a middleware position where some individuals promise to connect with legitimate lenders. However, better to stay from such a predatory middleman and deal directly with legitimate lenders.
* Not Understanding the APR on Loan: APR is an important component of the payday loan that gives you a clear idea as to how much you have to pay as a rate of interest. However, some borrowers are not even aware of the APR rate and often fall in trouble for paying more in the end. Therefore, you need to know the significance of the Annual Percentage Rate before applying for the loan.
* Badly Hit by Hidden Fees: A majority of payday loan borrowers commit this mistake of not asking the lender about the possible loan fee. However, there must be some fees that you have to pay at the time of taking the loan and in between as well. So, make sure to prepare your list of questions regarding loan application fees, returned checked fees, undisclosed missed or late payment fees, customer service fees, overdraft fees, or any other.
Frequently Asked Questions
1. How much loan can be availed through this?
You can get anywhere between $500 to $1500 for a minimum period of 2 weeks and a maximum of 60 days respectively.
2. Can the loan duration be extended?
In some cases, it can be extended up to 60 days. After that, you will be charged with the late payment fee and have to pay extra at any cost. Worse than that would be affecting your credit ratings that would lower your chances of getting a loan in the future.
3. What if fail to make the payment on time?
You will be charged with a late payment fee and the additional sum of money will keep on adding to your debt until you pay the same in full.
4. Can I add co-signer with no verification payday loans?
It depends on the discretionary power of loan lenders, whether they allow you to add a Co-signer with your loan application or not.
5. What if I need one more payday loan?
You can apply for another no credit check payday loan only in case of fully settling the previous one. Without a previous loan pending, your loan application will not be entertained.
6. Can I apply for a loan with low credit scores in my profile?
Yes, you can. There is no such restriction on the part of bad credit holders not to apply for a payday loan online.
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