Loan without credit check
A credit check is a mandatory requirement for a loan from a bank or a financial institution. But the financial market has come up with a loan that requires no credit check at all. Such loans by default are also available to persons who have bad credit or otherwise ineligible for a normal loan. When a situation arises and you as an individual are surrounded by heavy debt or an unexpected expenditure then the normal avenues are shut for you. But you can avail of a pay day loan and that should help you tide over your immediate problem.
Payday loans can also be classified as emergency loans. These loans give you hard cash in a very short time however the interest rates on these loans are high by any standard. The amount of such loans disbursed is also small and can be in the range of $ 500 to $ 1500. But in real terms this emergency loan can be a great help in a time of dire necessity. Payday loan or emergency loans are a popular option. As no credit check is required these loans are easily availed.
Pay day loan don't have to be under scrutiny of a credit check. In addition you can have access to cash in a very short time. The important point is that even if you have bad credit or a declared bankruptcy pay day loans can still be availed by you.
This form of emergency loan can be availed easily and the application process is simple and not at all time consuming. This type of loan often referred to as emergency loan can be applied via a telephone or the net and sometimes the entire process may be over in less than an hour. This is the other big advantage of these loans speed. Again if the conditions are satisfied then you can have the check credited into your bank account in just about 2 or 3 days at the maximum. The advantage of these loans is that there are no file charges and you have the option of a roll forward of the loan as well. These advantages far outweigh the disadvantage of the high interest that you have to pay for these loans. The high interest is justified as the lender is giving you a loan without any security or credit check. This high interest will have to be accepted by you. The fact that you get ready cash at the click of a mouse can be a great plus for such emergency pay day loans.
There are some simple conditions that must be fulfilled to be eligible for a loan without credit check. Firstly you must be a citizen of the United States and also have checking account in any American bank. In addition you must be able to show that you have a regular source of income every month. The amount of credit that will be given to you will depend on the verified income document that you provide. Thus members of the armed forces and government employees as well as workers of big companies can get such loans without a credit check easily. As far as the armed forces are concerned they are governed by a special act of Congress that limits the Apr to be charged to them.
Many financial experts opine that these loans are not healthy as they fleece poor people with high interest rates. But a lot many persons are in favor of these loans as they give emergency cash to a person in need. This point cannot be glossed over.
The federal government does not regulate these types of loans except in the case of Armed forces personnel. These loans are a state subject and states are free to frame their own laws for regulating these loans. The place of residence of the borrower and the lender will thus have bearing as these loans come under the purview of state law. One of the regulatory practices enforced by the sates is a cap on exorbitant interest rates. Earlier there was free for all as far as interest was concerned and rates could be as high as 70 and 80 percent. But now this is regulated and customers cannot be fleeced. State payday loan laws insist that the APR (Annual Percentage Rate) of a payday loanshouldn\\'t exceed a certain limit. This is an important step as the Apr is the essence of a pay day loan and its capping can be great help to the customer.
Pay day loans are easy to avail. There are thousands of outlets all over the United States and you can approach any one of them. In addition you can also surf the net and search for pay day loan outlets. You can also apply straight way on the net and get a sanction in a very short time. If speed is of essence to then these loans will be great help as no collateral is asked for and no credit check carried out. All you need is your identification and source of regular income. In addition you have the advantage of rolling forward the loan.But it is advisable not to roll forward the loan too frequently as the interest rate is high and you will be loser in the long run.
Pay day loans serve a definite purpose in the financial world. They give a chance to a man with poor credit to avail of some emergency cash to help him out in cases like a medical emergency or unforeseen expenditure. But while applying for an emergency loan go through the terms and conditions carefully and understand what you are signing up for.