This is done to prevent folks from getting in over their heads these kind of high interest loans. If they do, bad credit does not eliminate you as an applicant for a guaranteed payday loan.
Regardless if you have good credit or bad credit or even if you are rich or poor, there is a credit card on the marketplace for you. If you have bad credit then you will need to find a company that offers unsecured credit cards.
Some payday loans lenders only bad credit loans, which require faxes be sent to them, will require evidence of employment. Since we are talking about payday loans lenders only bad credit, let’s see how relates to it. Generally they want you to fax them copies of your recent employment pay stubs as proof of your employment.
Because there are so many payday loan sites and only ten spots on Google’s first page for “payday loans”, lenders are working harder to attract your business.
Having little recourse in making good on defaulted loans, lenders must offset the cost with high interest rates. In spite of the high interest rates, those who take out a legitimate bad credit personal loan from a reputable company do not necessarily make their situation worse. If they are careful and wise, they may even ameliorate their financial circumstances. If you are in the market for a legitimate bad credit personal from a reliable company, you need to consider a few things.
If you are unemployed or self-employed, or you need to borrow more money than you earn in a month, you may want to place a major asset as collateral. Most lenders will accept a car title. Many will also accept machinery ownership documents as collateral. If you have smaller but highly valuable assets, you should check specifically with the lender whether they will accept them. Just keep in mind that if you place an asset as collateral, it becomes property of the lender in case you cannot repay the loan. You assume a high risk and you must be aware of the consequences.
What do you need to get a same day payday loan with no credit check? Requirements differ by lender but the main ones are a job, social security number and, in most cases, an active checking account.
Payday loans are perfect whenever emergencies come up because they can help you to overcome a temporary cash shortage. However, these loans can also be problematic and risky if you are unable to pay the loan back right away and are thus faced with fees that can mount to a fortune in the long run. Of course, this does not mean that payday loans are all bad. It just means that you need to understand what you are getting into and what the consequences of non-repayment are.
Suppose that you are paying $10 for loan with repayment period set at two weeks. If $10 makes 5% of the amount borrowed, annual charge (APR) will 130% without compounding. This seems massive but you have to understand that the APR is for the same money rolled over 26 times.
Let’s take a look at a quick example. Using a conservative guess on numbers, consider that a $1,000 loan carries $170 for a processing fee and then $200 of interest. Therefore, a $1,000 loan actually costs you $1,370.
With the idiot proof way lenders have set-up the application process, and the idiot-proof tips you’ve just read above, you are more than equipped to handle no fax payday loans. If these things don’t keep you safe from pay day loan debt, well, then you’re a bigger idiot than any of us could have imagined!