Is it hard to get a no credit check loan?
Not many lenders offer no credit check loans – but if you find one that does, the application process is quite easy. Here’s how it works:
- Find an online lender that offers no credit check loans
- Decide how much you want to borrow, and for how long
- Provide information about your identity, income and employment
In the best-case scenario, it might take less than an hour for the lender to assess your application, approve it and then transfer the funds.
Why do people use no credit check loans?
People use no credit check loans when they have bad credit and need money in a hurry.
Most lenders steer clear of no credit check loans, because they believe it’s too risky to lend to people with a bad credit score. However, some payday lenders are prepared to issue no credit check loans.
A word of warning – no credit check loans generally come with high fees. Payday lenders can’t charge interest, but they are allowed to charge an establishment fee of up to 20 per cent of the loan amount and a monthly fee of up to 4 per cent of the loan amount.
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Why do no credit check loans have a bad reputation?
There are two reasons why no credit check loans have a bad reputation:
- They usually have high fees
- Some people believe the loans are exploitative
Payday lenders aren’t allowed to charge interest, but they are allowed to charge an establishment fee of up to 20 per cent of the loan amount ($200 on a $1,000 loan) and a monthly fee of up to 4 per cent ($40 on a $1,000 loan).
Some people feel it’s wrong to charge such high fees, especially because some borrowers may have a low income and may be struggling with debt.
Do I need security for instant approval loans?
As a general rule, you don’t need to provide security to get an instant approval loan. However, in return for giving you a quick loan and not asking for any collateral, the lender will almost certainly charge you high fees.
With instant approval loans, the lender can charge an establishment fee of up to 20 per cent (which would be $300 on a $1,500 loan) and a monthly fee of up to 4 per cent ($60 on a $1,500 loan).
Why do people take out $500 payday loans?
People often use $500 payday loans when their savings are exhausted and they get hit with an expense that feels urgent. Examples include:
- School fees
- Medical bills
- Vet bills
- Car repairs
- Mortgage repayments
- Funeral costs
- Family holidays
How do I get a $500 payday loan?
The most common way to get a $500 payday loan is over the internet, although some lenders also take in-store applications. The application process may take as little as five minutes and, in some cases, your loan may be assessed and approved within the hour.
When you apply for a $500 payday loan, you will probably have to provide:
- Name and address
- Proof of identification
- Employment details
How long do you have to repay a $1,200 payday loan?
Depending on the lender, you’ll generally be given between 16 days and 12 months to repay a $1,200 payday loan.
As a general rule, the longer your loan term, the more the loan will ultimately cost you, because most payday lenders charge monthly account-keeping fees.
What's the interest on a $1,000 payday loan?
Payday lenders aren’t allowed to charge interest on $1,000 payday loans (or any other payday loans). However, they are allowed to charge high fees, which may include:
- An establishment fee of up to 20 per cent (or $200)
- Monthly fees of up to 4 per cent (or $40)
Depending on the length of your loan, here is the maximum amount you would have to repay with a $1,000 payday loan:
- 1 month = $1,240
- 2 months = $1,280
- 3 months = $1,320
- 4 months = $1,360
- 5 months = $1,400
- 6 months = $1,440
- 7 months = $1,480
- 8 months = $1,520
- 9 months = $1,560
- 10 months = $1,600
- 11 months = $1,640
- 12 months = $1,680