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.
Can I get a $1,500 payday loan with bad credit?
Yes, it may be possible to get a $1,500 payday loan with bad credit. Some payday lenders give loans to people with bad credit histories if they believe the borrower has the capacity to repay the loan.
Under Australia’s responsible lending rules, lenders aren’t allowed to approve $1,500 payday loans if they don’t believe the borrower can make the repayments.
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.
Should I take out a $1,000 payday loan?
As a general rule, you should think very carefully before you take out a $1,000 payday loan – and proceed only if you’ve explored all other options. That’s because payday loans generally have very high fees.
How do $1,500 payday loans work?
A $1,500 payday loan is a loan that is likely to have a fast approval process and charge high fees. Depending on your circumstances, you might be able to receive the money within an hour.
However, if you want the lender to give you the money almost instantly, and without conducting an in-depth credit assessment, you’ll have to pay for the privilege. The lender can charge you a one-off establishment fee of up to 20 per cent (which would be $300 for a $1,500 payday loan) and a monthly account-keeping fee of up to 4 per cent (or $60). Payday lenders can only charge fees – not interest.
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).
How fast can I get a $1,500 payday loan?
Some lenders will assess $1,500 payday loan applications and then pay out funds within an hour.
However, each lender is different. Also, assessment times vary from borrower to borrower. Some $1,500 payday loan applications are simpler and can therefore be approved faster; others are more complicated and take longer.