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The hidden consequences of no credit check payday loans

Information verified correct on April 27th, 2017

Why no credit check payday loans cause more problems than they solve.

There is no telling when someone might need quick access to money, and with poor credit history, getting a loan can be a daunting task. If you find yourself in this scenario, you may be tempted to dip your toe into the payday loan market. However, the lax requirements when it comes to your creditworthiness is not for the benefit of the borrower. In the case of payday loans, these lenders capitalize on the fact that most borrowers cannot afford to payback the loan.

A selection of loans you can apply for

Here are some loan providers that you can apply to. Note that the max loan amount is based on the lender’s max amount. The amount will vary based on your state of residence.

Rates last updated April 27th, 2017
Unfortunately, none of the personal loan providers have a loan for that credit score. It you are urgent need of a small loan, you might want to check out a short term loan.
APR Maximum Loan Amount Term of Loan Turnaround Time
LendUp Payday Loans
LendUp offers $250 loans for first-time borrowers. Good credit is not required.
$250 7–30 days 1 business day Go to site More
OppLoans Installment Loans
Get a better personal loan of up to $5,000 with 9- to 24-month repayment terms, depending on your state.
59% $5,000 9 to 24 months 1 business day Go to site More
Check into Cash Payday Loan
With 1,000 branches in 30 states, get $50 to $1,000 in days from this direct lender.
260.71% $1,000 Varies by state 1–2 business days Go to site More
CashNetUSA Loan
Apply for a $300 to $2,250 short-term loan, installment loan or line of credit with a day’s turnaround.
201.32% $2,250 Varies by state 1 business day Go to site More
Cash Central Payday Loan
Offers high-APR cash loans of up to 32 days deposited directly into your checking account.
0% 5000 Varies by state 1–2 business days Go to site More
ACE Cash Express Payday Loans
An array of services in 1,000 locations include short-term, installment and title loans with terms that vary by state.
0% Varies by state Varies by state Generally receive the money the next business day Go to site More

Have we missed anything in the comparison table? Tell us

  • If the provider quotes a different rate to the one above please let us know

A selection of lender matching services you can apply with

These lender matching services are not lenders, loan brokers or agents for any lender or loan broker. They also do not make credit decisions. They focus on trying to match you with a lender that might be able to provide you the funds you seek. Note that the max loan amount is based on the matching services max amount, but it will vary based on your state of residence. If you proceed with one of these services, confirm that the lender is reputable by checking with your local government.

Rates last updated April 27th, 2017
Unfortunately, none of the personal loan providers have a loan for that credit score. It you are urgent need of a small loan, you might want to check out a short term loan.
APR Maximum Loan Amount Term of Loan Turnaround Time
Bad Credit Loans Personal Loans
Fast and easy approval for people with bad credit. Qualifications are straightforward and simple.
5.99% $5,000 Varies based on lender Varies based on lender Go to site More
LendYou Payday Loans
Money on your terms! Apply for a loan today.
6.63% $1,000 Varies 1 business day Go to site More
CashAdvance.com Payday Loans
Whether for an emergency situation or an unexpected expense, Cash Advance may be able to match you with a lender to fit your needs.
200% $1,000 Up to 12 months 1–2 days Go to site More
Accredited Debt Relief
Offering free consultations, Accredited Debt Relief can help you lower your monthly payments and interest rates or get out from under serious debt. Call 1-877-569-5675.
0% Varies based on lender On average a settlement lasts 2 to 4 years. Varies by lender Go to site More

Have we missed anything in the comparison table? Tell us

  • If the provider quotes a different rate to the one above please let us know

Is a “no credit check” payday loan really what it implies?

No credit check payday loans do not conduct traditional credit checks. But don’t assume that does not mean there is no approval process. They may check for employment history, previous debts, review credit from bureaus outside the big three, and payroll as factors to determine your eligibility. Otherwise, they function like other payday loans. They’re small, short-term unsecured loans that are expected to be paid back with a fee within a few weeks. They’re advertised to bridge the cash gap until the next payday and rely on consumers’ payroll and employment records for approval.
Do you have bad credit but still need a loan?

The payday lenders traps

In return for these quick and easy approve loans, payday lenders set up a number of traps that can result in borrowers in more financial trouble than when they started. Current financial troubles may be stressful, but after you learn about the hidden burdens of engaging with payday lenders, you may actually feel better about your existing situation.

  • Unaffordable interest. A lender’s fees may appear reasonable. For example, a $30 fee on a $100 loan due back within 2 weeks, but when annualized 782.15% APR. These astronomical rates are what keeps borrowers in debt with their payday lenders. Additional fees rack up for late payments or taking on new debts to pay back their previous ones.
  • Repeat short-term lending. Although you may convince yourself you can afford the fees, the odds are against you. When you can’t payback the loan you agreed upon, the payday lender will offer to let you take out another loan for additional fees. According to the Consumer Financial Protection Bureau (CFPB), four-in-five borrowers re-borrow from their lenders within a month. And most borrow at least 10 loans in a row.
  • Default. This occurs when the borrower cannot pay back the loan or take out an additional one. Borrowers are then subject to having funds withdrawn from their bank accounts, governmental funds withheld, repossession of their purchases, and harassment by harmful debt collectors. How often does this happen? The CFPB found that 20% of payday loan sequences result in default. This is of course after several attempts of repeat short-term lending.
  • Penalty fees. Payday lenders often set up automatic payments through the borrowers’ bank accounts. If an attempt by an online payday lender to withdraw payment results in overdraft, borrowers face the steep bank fees for falling into the red. This is an often looked hidden cost of payday lending. CFPB found that half of online borrowers have at least one debit attempt that overdrafts or fails over a period of 18 months. On average, these overdraft fees added up to $185 in addition to any fees the lender may charge for a failed attempt to withdraw funds.
  • Bank account closure. If a bank account maintains a negative balance for an extended amount of time, the depository institution may close the account causing greater financial difficulties. These consumers are forced to look to high-fee debit cards to pay bills, since regular banks will no longer do business with them. CFPB when researching online payday lenders found that within 90 days of the first insufficient funds transaction, 36 percent of accounts with failed debit attempts were closed by their bank.

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US Payday Loans Offers

Learn about our information service
Check into Cash Payday Loan

With 1,000 branches in 30 states, get $50 to $1,000 in days from this direct lender.

LendUp Payday Loans

LendUp offers $250 loans for first-time borrowers. Good credit is not required.

SWIFT Payday Loan

Access multiple lenders with a 5-minute application for a cash advance on your paycheck.

CashNetUSA Loan

Apply for a $300 to $2,250 short-term loan, installment loan or line of credit with a day’s turnaround.

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