Pay day loans are the most usual type of no credit check loans
. This type of cash advance is usually made in the short term until the next pay day, and the lender will not do the usual credit history checks on the prospective borrower. The companies providing this sort of lending know that their borrowers typically have bad credit, so they design their terms and policies with that in mind.
This kind of cash advance is best suited to someone who is experiencing an emergency where they need fast cash to solve a problem. They will usually have a poor credit rating and as a result find it difficult if not impossible to raise emergency borrowing in more traditional ways, such as credit cards.
To get one of these cash advances an applicant will need to provide some information and meet certain criteria. Typically a borrower will need to be at least 18 years old, to be in employment (or to have an income that can be verified) and to have an active bank account.
An application for one of these cash advances can usually be made online. The lender will then quickly verify that the information provided is accurate. As soon as the checks are completed then the cash required can be transferred to the borrowers' bank account. These payments can be very quick, the cash needed can often be in the borrowers bank account on the same day that it is requested.
The costs that someone will incur by not getting a quick cash advance can be high. For example bank fees when you have more checks coming out than money in the account. For that sort of reason these types of borrowing can actually be cheaper than the alternatives.
When properly used no credit check loans can be of benefit to people who could not otherwise get emergency cash. Problems will only arise if this type of borrowing is abused.