In many instances, a person may find himself in a position where he needs to take a personal loan. The reasons are numerous. Sometimes, an unexpected finance may come on board, like an emergency repair to a vehicle, or debt related reasons.
When unexpected finances arise, a need for a personal loan may come into the picture. However, not everyone has the credit to receive a traditional loan from a lender, such as a bank or third party lending service.
In the situation where a person has less than perfect, or downright bad credit, the need for an emergency loan does not change. Thankfully, there are options for a person with bad credit to still receive a loan.
What are personal loans without a credit check?
Personal loans without a credit check are typically given in the form of payday loans. Payday loans are made from lenders who give out money to employed individuals. The amount of money that a payday lender can provide varies state to state, dependent on state statutory laws in regard to payday loans.
For instance, in California, a payday lender is prohibited from making a payday loan over $255.00, and the APR is also capped.
APR, or (annual percentage rate) is also a number that you should be aware of when you are applying for a payday loan. The APR could be as high as 800%. So if you decide that a payday loan is right for you, because you do not want a credit check, then you should pay it back as soon as possible, as to avoid paying astronomical interest on your payday loan.
Are payday loans easy to get?
Yes. If you have a job and a stable income, payday loans are typically easy to get. However, as stated above, make sure you are paying attention to the APR and the repayment schedule. Also, it is easier to qualify for a payday loan if you have direct deposit. In many instances, the lender will want to check your bank statement to make sure that you are receiving the wages that you reported.
Is a payday loan for me?
There are many factors you should consider when applying for a personal loan with bad credit, mostly, the APR and the fact that the repayment schedule should be in accord with what you can actually afford. Do not accidentally lock yourself into a loan that you cannot afford, because it can impact your credits score, even though you did not use your credit score to obtain the loan.
Furthermore, if you live in a state where the amount a payday lender can loan is not capped, you have personal responsibility to make sure that you are taking no more than you actually need.
Overall, a payday loan can be a good nontraditional source of a loan, just make sure that you are being responsible in the process!