Not everyone in today’s world has the type of credit rating that banks love. In fact, more and more people each month are being turned down for loans by their beloved banks. All is not lost, though, as the pay day loan companies are much more obliging. All you need to apply, in most cases, is proof of age, a full time job and a suitable direct deposit bank account. If accepted, you can have your pay day loan money in your account within a matter of hours.
It is worth mentioning that most pay day loan companies put a limit on the size of cash advance you can have, generally $1000-$1500. Even so, this is normally quite adequate for any emergency financial situations you haven’t planned for, and more than enough to get you out of a sticky situation. You don’t even need to worry about passing credit checks as your credit history is not a factor during the assessment procedure.
So, now, to the downside if you can call it that. The fees charged on a no credit check pay day loan are quite high compared to those of your bank. On average you’ll pay $10 for every $100 you borrow, so for argument’s sake, let’s say you borrow $500. At the end of the pay day loan term – which is generally 2-4 weeks depending on when your next pay day falls – you’ll be expected to pay back $550 and this is the amount that the loan company will debit from your account. For an instant cash advance in an emergency, though, $50 is neither here nor there and at the end of the day it could save you much larger fees in the form of late payment penalties on your bills and credit agreements.
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