The process of getting a payday loan without a credit check is actually very easy. Very few, if any, payday lenders check your credit score when they give you a payday loan.
Unlike traditional lenders, which seem to want every piece of financial information about you, regardless of how tangentially related it is, payday lenders are primarily concerned with only one thing. They look at your income, and they use this information to decide whether or not to lend to you, and how much they will lend.
Why Payday Lenders Don’t Check Your Credit
The reason that a payday lender is willing to do this is because they are essentially using your income as their collateral. When you go into a payday lender’s office, they simply ask you to provide proof of your income, and when you get paid. When they see this information, they set up an agreement with you. They will either collect a check from you that is dated for your next paycheck, or you will sign an agreement saying that they can deduct money directly from you checking account.
This way, when the payment for the loan is due, it will simply be automatically withdrawn from your bank account. In this way, the payday lender faces almost no risk whatsoever of not receiving their payment back.
More Freedom
This puts the power back into the borrower’s hands, instead of the lenders. The borrower chooses whether or not they can afford to pay back a loan, rather than leaving this decision up to a bank.
Of course, this is not without some limitations. The amount of money you will be able to withdraw will be based on your income. It’s just that it won’t be based on the arbitrary factors that determine your credit score, such as how many credit inquiries their have been, whether or not you closed too many credit card accounts at the wrong time, whether you have been applying for new credit, and so on.
These factors can have a bizarre and counterintuitive effect on your credit score. Thankfully payday lenders simply are not interested in your credit score.
What To Do
All you really need to do in order to apply is bring your identification, a paycheck stub, and possibly a bank statement. You will need a bank account number, and possibly a check. You will write them a check, which will be dated to be deposited on the next time that you get paid. The money will be automatically withdrawn from your bank account on your next payday, which is why it is referred to as a payday loan. In some cases, they may be willing to push the date out to your second payday.
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