Online Payday Loans with No Credit Check

How do Online Payday Loans with No Credit Check Work?

Most times, the application process of applying for an online payday loan is a straightforward one without hassles or excess documentation. You can complete the entire process online or you can visit a storefront direct lender. 

To apply for a loan, you will be asked to provide some necessary documents necessary to the process like proof of income, bank details, etc. Before you get the funding, you will agree to the repayment terms with the lender you choose. The steps of applying for an online payday loan goes thus:

Step One

Make thorough research and select the best lender that properly suits your needs.

Step Two

Visit the lender’s website and begin your application process.

Step Three

Fill in all the information clearly and provide only the data asked for by the lender.

Step Four

Wait for your application to get verified.

Step Five 

When your application is approved, you will be asked to sign a loan contract that will be forwarded to your email.

Step Six

Wait for your funding.

Features of Online Payday Loans with No Credit Check 

There are many loan lenders in Canada, and each of them has its specific features. But, every lender has some basic features:

Quick Funding

In the case of emergencies, no credit check online payday loans are perfect because they are a gateway to quick cash. The funding time of these loans is almost instant and the maximum time that can be taken to disburse funds is 24 hours.

No Credit and Bad Credit are Accepted 

You can get approval and funding for online payday loans even if you have no credit or bad credit rating. 

Rate of Interest

The interest rates of online payday loans are usually very high. They usually range from about $15 to $30 for every $100 borrowed. The effect of the high rates is felt much more because the loans have short repayment terms. The longer the term, the higher the interest rates, and if borrowers can’t pay up the loan at the speculated time, there will be consequences.

Great Time Efficiency 

Online payday loan lenders understand how important time management is hence, most processes ate fine quickly. The good thing is that time doesn’t undermine the quality.

Eligibility Requirements to Apply for Online Payday Loans with No Credit Check 

When you have no credit check and want to apply for a no check payday loan, some requirements must be met. Although all vendors have some requirements that are only particular to their company, below are the basic general requirements all vendors demand.

• You must be at least the age of the majority of your province.
• You must be a citizen of Canada or a permanent resident over there.
• You should have a steady source of income.
• You should have an active bank account.

What is an Alternative to Online Payday Loans with No Credit Check?

The beauty of online payday loans is that direct lenders don’t require hard checks before they disburse funds. You might be wondering if there are other loan options to consider if you have no credit check and the answer is yes, there is.

An alternative to getting an online payday loan is getting a personal installment loan.

Personal installment loans are similar to online payday loans in the sense that they both have very swift funding. But personal installment loans come with longer terms, and you can request more money than if you are using an online payday loan.

The entire amount of the fund you borrowed is paid back along with some interest and other fees requested by the lender over a procession of payments. You don’t have to pay back all the money at once as you have to do with online payday loans.

Is there a Disadvantage to Using Online Payday Loans with No Credit Check?

Yes, there are some shortcomings to using online payday loans with no credit. The first drawback is that there is a limit to how much funds you can borrow depending on the lender you choose to use and the Canadian state regulations.

Also, no credit check online payday loans have quite high costs attributed to them. Loans like this usually have a high interest rate which can make it pretty difficult to pay back when the time comes. This is to say that if you can’t manage your finances when you get this loan, you will find yourself having to borrow a fund to pay off the first one you borrowed which is the gateway to a cycle of debts.

Why do Traditional Banks Perform Credit Checks?

Not all lenders are particular about credit checks, but all traditional banks have to perform credit checks. Banks do this so that they can know if you will have the ability to repay the loan you want to borrow and to find out the level of your creditworthiness. This reduces the risk of lending money to people that are most likely not going to pay it back.

If you have low credit ratings, banks will give you a loan with a higher interest rate because you will be flagged as a potential risk. That is if you get the loan at all.

The terrible thing is that every time you make a loan inquiry from a bank and get denied because of a low credit score, it is recorded on your credit report which makes it worse. 

Conclusion 

Before you settle for an online payday loan, be sure that you have no other option available. If you do, you might want to consider it instead because of the high rate of interest payday loans come with.

If you decide to get an online payday loan, it is best to get it with a trustworthy vendor that has good reviews.