Payday Loans Without Credit Check

Many South Africans trust Payday Loans because of their attractive offers, minimal paperwork, fast approval, and the option without needing a good credit score. Payday Loans without credit check is considered to be a very pleasing, easy and quick financing option when you are in dire need of money on immediate basis.

What Are Payday Loans Without Credit Check?

They are short term based loans that let you borrow small amount of funds lent at a higher rate of interest. They are given on the agreement that you will pay them back when you receive your next paycheck.

How Does Payday Loans Without Credit Check Work?

No matter what your needs are, arranging quick cash relief is possible to cover any sort of unexpected needs and expenses until you get your next paycheck. These short term loans usually charge triple digit annual percentage rates (APRs), typically repaid over a period of two to four weeks, close to your next payday.

With such high interest rate attached with Payday Loans, they can be difficult to repay and could end up costing you much more than you may have ever expected. Before you apply for the one, just make sure you have carefully read about the terms and conditions of these loans.

Payday Loans works differently for different individual and also for different locations. Different states have different laws surrounding Payday Loans, limiting how much you can borrow, how much the lender will charge and how much you are expected to repay. Some states prohibit Payday Loans altogether.

Who All Can Qualify For A Payday Loans Without Credit Check?

The criteria for applying for a payday loan vary from lender to lender. Generally there are few basic needs that you need to have while applying for a loan. This may include-

• Attaining a minimum age of eighteen years
• Doing a regular job and earning fixed monthly income
• Be a permanent resident of South Africa
• Having valid checking account that accepts direct deposit

How Much One Can Get And At What Cost?

Payday Loans offer funds in between R100-R10,000, depending on your needs and repayment capability. You need to return back the loan amount and the interest charged within 14-30 days or by your next paycheck. These small loans come with a finance charge, which is based on the loan amount.

As Payday Loans have short repayment term, these costs translate to a steep APR. Payday loan APR are usually 400% or more, but despite such high costs, roughly 2.5 million South Africans households take out Payday Loans each year. Wondering why people rely so much on Payday Loans? Well people who resort to such short term loans generally do not have any other financing option.

They may have either poor credit score which prevent them from getting a better loan deal or they may have lack of knowledge about alternatives to Payday Loans. Also, there are some people who literally feel embarrassed about asking for financial help from friends and relatives.

Many South Africans resort to Payday Loans as they are quite easy to get. According to a survey the number of payday lenders is increasing in the market. Payday loan application is easy to complete, most don’t run hard credit checks and no collateral is required to pledge against the loan. All you typically need is identification, a bank account, a steady paycheck and a legal age of eighteen years or more.

The Payday Loans cost are usually set by state laws with fees ranging from R100 to R130 for every R100 borrowed. A two-week loan usually costs R130 per R100. For example, if you have borrowed R100 for a two-week payday loan and your lender is charging you a R15 fee for every R100 borrowed at an interest rate of 15%. But since you have to repay the loan in two weeks, that 15% finance charge equates to an APR of almost 400% because the loan length is only 14 days. On a two-week loan, that daily interest cost is R1.07.

How Can I Repay My Payday Loan?

Depending On The Lender, You May Have Few Options To Pay Off The Debt:

• You can pay off by submitting a past dated paycheck when you apply
• A check on your next payday
• Paying online through lender’s website
• A direct automatic debit from your bank account

What If I Can’t Repay A Payday Loans without credit check?

If you can’t manage to repay your loan on time or if in case of payment default, a penalty or late fee charge will be imposed by lenders that can make your loan even more expensive.

What Is A Payday Loan without Credit Check Rollover?

Some payday lenders will offer a loan rollover when permitted by the law. If your loan repayment date is approaching soon, the lender will allow the old loan balance due to roll over into a new loan or will renew the existing loan again. By doing this, the borrower can get a chance to pay only the fees while the due date for the larger loan balance is extended to a future date. This gives the borrower more time to repay the loan and fulfill their agreement.

Who Can I Apply For A Payday Loans without Credit Check?

You can apply for payday loans without credit check through banks, online lenders and other financial institutions. Online payday lending is hugely popular among South Africans and helps them to receive the approved amount directly into their bank accounts. To apply for a loan online, you just need to submit a simple loan application form with required details. Lenders will conduct a credit check to know your credit worthiness. Lenders in no time will take the decision of approving you a loan. Once approved, the amount will be transferred into your checking account, generally on the next or within few working days.

What Are The Pros And Cons Payday Loans without Credit Check?

Pros

• They are easy to access
• Fewer requirements
• An unsecured type of a loan, no collateral required
• No restriction on the usage of borrowed funds
• Direct deposit of funds into your bank account
• Fast approval

Cons

• They are expensive
• Higher rate of interest attached with the loan
• They are considered predatory
• It’s easy to get trapped in a debt cycle
• Payday Loans target those people living life paycheck-to-paycheck
• Consequences of non-repayment is quite strict
• They don’t help you build credit

What To Keep In Mind While Applying For A Payday Loan Online?

• Consider it as a temporary arrangement and don’t take up Payday Loans back to back
• Know your eligibility before you apply
• Check your financial position before you apply
• Take up an amount that you can easily afford to pay off
• Compare payday loan rate and fees from multiple lenders
• Go through the loan terms and conditions
• Do business with the legitimate lender only to avoid frauds
• Calculate your requirement carefully

What Proactive Strategies One Can Apply To Avoid Payday Loans In Future?

Emergencies can pop up at any time, without any prior notification. The best approach to handle emergency is to prepare as much as in advance as you can. That way, if you do experience financial hardships such as unexpected bills, medical emergency, etc, you still be able to get out of it by using money from your emergency savings fund or your credit card instead of applying for a payday loan.

Here Are Some Strategies That You Must Plan Today To Avoid Payday Loans In Future:

1. Plan ahead for emergencies by opening an emergency fund account where you must vow to save a portion of your income every month.
2. Build your credit, so that you can qualify for high-quality financial programs.
3. Create a budget and stick to it.
4. Improve your financial condition by cutting down on expenses, increasing your income, or both.

What Are Alternative Options To A Payday Loans?

Do Not Hesitate To Borrow From Friends Or Relative

Ask your loved one to help you with finance in bad times. Just be sure to keep your promise of returning the amount soon if you really don’t want to spoil your relationship for money. Taking help from your loved ones would save you from paying interest charges.

Take Up A Personal Loan

Whatever you need to cover from basic to emergency expenses, you can usually get the cash you need with personal loans. While interest rates on personal loans can be higher, but still lower than that of payday loan.

Use Your Credit Cards

Most credit cards are designed to reach out at any time in difficult times. One can use credit limit available for your allotted credit card. You will be charged certain interest rate for using that amount, which may vary from bank to bank and card to card.

Payday Loans are expensive and no one can deny it. Payday Loans are a short term lending process which is always very expensive especially when the amount is relatively small. These loans are secured against borrower’s forthcoming paycheck, as opposed to traditional loans that are paid pack over an extended period of time. People may get into trouble once they begin to borrow money that way. However, many hardworking people who need money quickly and cannot wait longer, a payday loan may be the perfect solution.