Online payday loans come with multiple prejudices and concerns. On the one hand, they are almost perfect for quick financial assistance due to their fast approval and funding times. But the flip side of the coin is that they are extremely expensive and potentially risky. However, there are some situations when payday loans have no equal. Let’s take a look at 6 reasons why getting small payday loans online may be lifesaving.
Editor’s note: payday loans are not the best option if you already experience financial difficulties. As they are still expensive and risky, you need to consider them cautiously. We recommend you use payday loans only as a last resort, provided that you have a stable source of income and can guarantee on-time repayment.
What Is a Small Payday Loan with No Credit Check?
No credit check payday loans are a type of borrowing that you can get without undergoing a hard credit check through major credit bureaus. This means that applicants with bad and poor credit scores can easily access them too. These loans are typically limited to $1,000, depending on a borrower’s state of residence. The repayment is made in full within two to four weeks, with the due date usually tied to your next paycheck.
Additionally, a small payday loan with no credit check is one of the most expensive options on the lending market. Some payday lenders set an annual percentage rate up to 400%, which is almost 11 times higher than one on a regular personal loan.
Is a Payday Loan Right for Me?
Getting a payday loan may work for you if the following three conditions are met:
- You don’t have personal savings and can’t access cheaper financing options.
- You face a financial emergency and need money urgently.
- You have a clear repayment plan and can afford this expensive debt.
If you have more favorable alternatives or are not sure that you can pay off the debt without taking out a new loan, you’d better refrain from getting a payday loan.
Pros and Cons of Online Payday Loans
Online payday loans are not as simple as they seem to be. They have their pros and cons and can be a good solution for one but a disaster for another. Let’s take a closer look at their positive and negative sides.
- Fast and easy application process. You can complete it from your couch in just 5 minutes;
- Guaranteed loan decisions in minutes. You don’t need to guess for days whether you get approved for a loan;
- Bad credit is not an obstacle. As direct lenders don’t perform hard credit checks, you can qualify for an online payday loan even with bad credit;
- Money is deposited quickly. Approved borrowers typically get payday loan amounts within 24 business hours.
- Unreasonable costs. Like with most bad credit loans, payday loans are generally high-interest loan options. An APR may be over 400%;
- Limited loan amounts and terms. In most states, borrowers can get up to $1,000, which cannot be enough for some major life projects. Additionally, the amount must be repaid in full in just a few weeks, making payday loans difficult to handle;
- The potential risk of getting into a debt hole. Four out of five borrowers end up renewing their payday loans or getting another one to cover the existing one.
6 Reasons You May Need to Get Small Payday Loans Online
While there are frankly inappropriate situations to resort to payday loans, there are also reasons why they may be your best choice. Below are six examples.
1. You Need to Cover Unexpected Expenses or Financial Emergencies
Suppose that you have unexpected medical bills to deal with or your car breaks down on your way to work. There’s no spare money you can put toward these expenses, but they require you to act quickly. This way, online payday loans can come to the rescue. All you need is to fill out a simple form on a lender’s website via your smartphone.
2. Bad Credit Holds You Back from Getting a Traditional Loan
If you have less-than-perfect credit, traditional lenders, such as banks and credit unions, may not be willing to work with you until you provide collateral. Payday loans are available without any repayment guarantee, even if you have a limited credit history.
3. You’re Looking for Check-No-Credit Payday Loans
As payday lenders run soft credit checks only, applying for small payday loans online leaves no traces in your credit history. This comes with several benefits over traditional loans. First, your credit score is excluded from the list of factors that can affect your loan approval. Second, the process of obtaining the loan becomes extremely fast. Finally, payday loans don’t impact your credit score as long as you pay without delays. Thus, if you’re looking for an easy-to-get loan without hard pulls, small payday loans can meet your demand.
4. You Have No Time to Visit a Storefront Lender
We’re all forced to live at a frenetic pace and are deeply immersed in work and everyday routine. Therefore, it can be difficult to find a few spare hours to visit a lender’s branch and apply in person. If you’re looking for more flexibility, small payday loans can be a modern solution to meet your crazy rhythm of life. Once you’ve applied online and get approved, the funds will be deposited directly into your bank account.
5. A Hassle-Free Loan Process Is Your Top Priority
When you apply for small payday loans online, there’s no physical documents or faxing required. All the documents can be attached electronically, and the money is transferred via direct deposit. Commonly, your part of the work is just filling out an online form correctly. Then, the lender will review your application details and send you an offer if you meet its eligibility requirements. To accept it, you need to e-sign a loan without visiting a physical location. It’s just that simple!
6. You Need Money Instantly
Online loans are known for being lightning-fast. Instead of waiting for days or weeks, as often happens with traditional loans, you can get $100 instantly online or even request $1,000 if your income is high enough. After you submit an online form, you will get an almost instant approval decision, typically in 5-15 minutes. If approved, the money will be transferred to your bank account within one business day. Therefore, payday loans are quite popular with people who need cash quickly to cover emergency expenses.
Is It Possible to Get Short-Term Loans Online with No Credit Check?
Lenders that advertise short-term loans online with no credit check typically mean that they perform soft checks only. Such inquiries don’t involve requesting your credit report details from major credit bureaus. However, loan providers still need to evaluate your creditworthiness to ensure they will get their money back. Thus, you can get a payday loan without an impact on your credit score, but there’s still a soft pull that will be performed.
How to Get Quick Payday Loans Online?
Typically, borrowers can access payday loans online in a few simple steps:
- Fill out a loan request form on the lender’s website.
- Get a response from the lender.
- If approved, read the loan agreement carefully and sign it if you find loan terms suitable.
- Access the funds in your checking account. Quick payday loans online are usually transferred within one business day.
How to Choose Best Online Payday Loans
To make the right choice, you need to compare loan terms offered by different loan providers and pay attention to several factors. To do this, you need to pre-qualify for payday loans from multiple reputable lenders and get offers from them. Then, take a look at interest rates, additional fees, repayment terms, and other loan details that can affect its cost or convenience. You can also use trusted connecting services that bring multiple credible lenders under one roof to make things easier for you.
Things to Consider Before Requesting Easy No Credit Check Payday Loans
Payday loans should be treated with caution, and we want to help you make an informed and responsible borrowing decision. Here are some things to pay attention to before going into debt.
Consider Payday Loan Alternatives
Before getting a payday loan, make sure it’s the one and only option available to you at the moment. First, consider flexible repayment options that are more budget-friendly. For example, installment loans and bad credit personal loans offer flexible repayment terms, allowing you to make affordable monthly installments instead of repaying the funds in one lump sum. You can also get a better deal if you borrow money from your friends or apply for a secured loan.
Be Realistic About Your Ability to Repay The Loan Amount
Late payments come with additional fees and credit score damage. Additionally, they are often a starting point for getting into a debt trap. Be careful and avoid going into debt if you experience permanent financial difficulties.
A short-term loan is not a negative financial solution in itself. Only the way you use the funds determines whether it will help you deal with difficulties or make your financial situation worse. In some cases, payday loans can help you improve your current financial health. However, they still have several potential dangers and should be approached responsibly.