A credit check is one of the most important aspects of getting your loan approved. This can, however, make the loan approval process rather slow, tedious, and difficult. A credit check is done by lenders to check the willingness and capacity of the borrower to pay back the loan. It is, however, important to note that people who are in dire need of money cannot afford to waste time in such time-consuming formalities.
Getting a loan approved from traditional lenders like banks and credit unions gets even more slow and complicated, and nearly impossible when the supposed borrower has a bad credit rating. In such situations, legitimate payday loans online no credit check direct lender for urgent financial needs is via a payday loan online with no credit required.
There are many financial institutions that offer payday loans online with no credit check. The funds for such payday loans get approved and distributed much faster than normal credit-checked loans from banks, etc. It is, however, essential note that the interest rate charged on such payday loans with no credit check is much higher as compared to traditional loans from banks, etc. The interest charged can go as high as 391 percent and can vary according to the loan amount and the lender of the payday loan with no credit check.
Verification of different items
In case of legitimate payday loans online with no credit check, lenders typically do not verify the credit history of the supposed borrower. They may, however, check certain things, as listed below:
- A payday loan borrower has to provide his/her Social Security number to avail of the no credit check loan. This SS verification is mandated by all state governments as it wants no borrower to take loans in excess of what he/she can afford to repay.
- Lenders of legitimate payday loans may use a tracking system to check if a borrower has any outstanding debts, and the amount of debt if any, at the time of application for a payday loan. They may also verify whether the borrower has a history of non-payment of previous instances of payday loans or advance loans. It may, however, be noted that even though lenders may occasionally use the tracking system for verification of certain burrower data, any case of non-payment of older debts (like personal unsecured debts or credit card debts) is not a cause of worry for the lenders, and often does not have a bearing on the disbursement of payday loans.
- Lenders will verify the monthly income of a burrower via the use of his/her pay stub as well as his/her banking account. It is important for a borrower to have a specific level of monthly income in order to be able to avail of a legitimate payday loan. Individuals with monthly income lower than a specified amount may not be able to get payday loans with no credit check.
A burrower’s history of check writing is typically not a cause of concern for payday loan lenders. However, if a borrower has not paid older payday online loans, then it will be visible to the lenders during verification of the burrower’s identity when processing a payday loan.