What Are No Credit Check Payday Loans?

No credit check payday loans are somewhat notorious. Consumer groups say that lenders who offer these loans are preying on consumers who need cash but don't have credit history to get normal, regulated loans. The truth is that these types of loans should be used for emergencies only, and with a good deal of foresight.

Payday loans are exactly what they sound like--loans based on a consumer's paycheck. Think of a loan of this type as a cash advance based on your work history and bank account. If your employer won't give you an advance on your check, you can use a payday loan to secure that advance.

Why would people take out payday loans, considering the high interest rates and fees?

Emergencies happen all the time. If you have a medical emergency, you usually can't get help from a doctor or dentist until you pay the bill upfront. If you have a repair emergency, such as a car repair or damage to your house, you probably have to pay this upfront as well.

No credit check payday loans are often your last shot at getting the money you need in a timely fashion.

These loans are secured using just a few pieces of information:

--a paystub from your current job
--employment history information
--a bank account with a routing number
--one or two personal references
--one or two pieces of identification

The biggest danger of a payday loan is that you may be forced into paying a high interest rate. Since these loans are short-term (often just a week or two) the lender can only make money by charging an annual interest rate that looks downright perverse--as high as 911% in some states. This is why you should always check the interest rate before you apply for such a product.

Loans based on your next payday often put the money in your hand or in your bank account in just 24 hours, or even less if you use an online payday loan provider. That's why they're great for emergency expenses . . . who has time to wait to deal with a bank loan officer when a medical expense is necessary? Just be sure that you're able to repay the loan, and that you're at least comfortable with the interest rate you're being offered. There are plenty of payday loans offers out there. If you don't like the offer you're getting, simply move on to the next lender.