The average person will experience a moment or two in life when they are faced with financial challenges. It is nothing to be ashamed of. Life happens and the unexpected comes along with it.
Some people can pull out a credit card, while others can get a short-term loan to cover unexpected expenses. For another segment of the population, this isn’t an option. Instead, they turn to what was once considered non-traditional banking.
There they can get the money needed via online loans no credit check required.
The market is now saturated with these types of lenders. Many in the banking industry consider them predatory lenders. While a growing number see no credit check loans as a means to an immediate solution.
Are you experiencing a financial emergency and need a quick solution? Keep reading to learn more about payday loans.
Online Loans No Credit Check Needed Are a Needed Solution
Let’s be honest. Not everyone can walk into a bank and get a loan. In today’s climate, people are facing financial hardships as the world has been impacted by COVID-19. Anything can happen to cause someone to need a fast loan.
Perhaps your car needs repair. Or maybe a large bill has come due. Worse, you have to make a trip to urgent care with no insurance. There is a list of reasons why to apply for a fast loan.
Whether you have good credit, bad credit, or no credit, a payday loan can save the day.
Expect to Pay More for the Convenience
The biggest downside to no credit check loans is the annual percentage rate is much higher than a bank loan. For the average loan, the APR is almost 400 percent.
Keep in mind, the lender is taking a bigger risk by not doing a credit check. The loans are issued solely on the basis of the borrower having proven income and a bank account in good standing.
If you are responsible when it comes to using these types of loans the impact is minimal. On payday loans, no credit check for $500, the fees on average are $50. This is on a loan with no extensions.
It’s when you can’t repay the loan as scheduled that the loan costs increase.
Discreet and Easy
No credit check loans are perfect in emergency situations. Not everyone has a rich uncle to turn to. Plus, family and friends may be facing similar struggles.
Taking out a payday loan is quick and discreet. In the event, you can’t repay the loan when it comes due, you can simply request an extension. This way you avoid damaging personal relationships over money.
Don’t Let It Become Habit Forming
The online loans no credit check model works for a lot of people. For others, it can become habit-forming and costly when abused. Discipline yourself to only borrow for emergencies.
Is money tight right now? Read our article on how to buy wholesale this upcoming holiday season.