by Yvonne Fletcher
(New York, USA)
For customers interested in a payday loan but customers that also have bad credit or a poor credit history, there are options that are available. Traditional payday loan services, the services that are applied for through the payday loan retail stores that are seen on the street corners of every major city, can be an effective way to get access to the money you need – without having to undergo a credit check to determine whether you are going to be approved for the loan.
No credit check payday loans use the individual’s employment history when considering whether the customer is going to be eligible for the job. Using the employment history including the supporting documentation like a pay stub, in addition to bank statements and other pieces of personal finance information can help the payday loan company to determine whether the individual is not only eligible for the loan, but also to determine how much of a loan can be granted to the customer.
There is no credit check for these types of loans, meaning that the basis for the approval of the loan is going to be granted solely on the fact that the customer is going to have a pay check arriving in the future. The customer is borrowing against the future earnings and is therefore going to have to repay the loan in full – at the time the next paycheck is expected.
Payday loans can be an effective way to find the money when there is none in the budget for those unexpected expenses, but customers should ensure that they are borrowing the minimum amount required. Borrowing the minimum amount is going to make it easier to repay the loan in full without creating shortfalls in the budget. This way, the customer can reduce the stress coming into the next pay period.
No Paperwork Payday Loans
Customers shopping for payday loans have many options available to them. They can apply for payday loans through the traditional store front payday loan services, use the internet to apply for payday loans, or apply for payday loans using the telephone. The advantages to using the internet or applying for payday loans using the telephone is that the customer is often not required to provide the traditional paperwork required for the payday loan, as they fall under the category of no paperwork payday loans.
Though the loans require no paperwork to be filed, there is something else that customers should know. Unlike the traditional payday loans where customers are able to use their employment history and future wages to borrow the funds, customers using the telephone payday loan services are required to submit to a credit check in order to determine whether they are eligible for the no paperwork payday loan, and to determine the maximum amount that can be borrowed from the payday loan company.
This means that customers using the no paperwork payday loan service are required to have an average to good credit score, in order to be approved for the payday loan.
Once approved for the payday loan, customers are often eligible to have the funds deposited directly into the bank account. By providing the bank account information to the payday loan company the customer is able to create an easy repayment option as well, allowing the customer to agree to the proceeds of the loan being withdrawn from the bank account in the future. This allows the customer to make easy and simple payment arrangements to repay the loan without having to spend time in a lineup waiting for the payday loans store to open.