What does it mean when you see an advertisement for “payday loans online no credit check instant approval”? That’s a lot of buzzwords all wrapped up in one! Well, I’m here to help you break it down in to smaller pieces so you can really understand what this is all about. Especially if you are struggling financially, and you have a low credit score (sounds better than bad credit, right?), but you need help paying bills ASAP or just need some quick cash for anything really.

Payday Loans Online

So first of all, what is a payday loan? Simply put, a payday loan is a short term loan that allows you to get some quick cash today, that you pay back with your next paycheck. Or sometimes spread out over several pay periods. The amount of the loan is usually smaller in nature, anywhere from $100 up to $5,000. Due to the quick turnaround, and the fact they are typically geared for people with less than perfect credit, the interest rate tends to be a little bit higher than a traditional loan at a bank. So, everyone is a winner – the bank gets compensated for their increased risk, and the borrower (with bad credit and no savings) gets the cash they need in their bank account within 24 hours! After you apply for a payday loan, a lender will offer you a loan with specific terms, such as amount being borrowed, interest rate, length of the loan, number and frequency of payments, etc. You can review these terms and either accept or reject them.

What could be better than a payday loan? How about the ability to apply, receive a loan offer, and accept the terms all within about 2 minutes – ONLINE! You can do all of this on your phone, tablet, laptop, home PC, or whatever internet device you choose. You don’t have to go to a bank or a brick and mortar payday loan branch. How cool is that?!

No Credit Check

Another huge advantage of payday loans is that the lenders are usually not basing their decision on whether you have a good or bad credit history. When you apply, most payday loan lenders will only conduct a soft credit pull which does not ding your credit score. They also aren’t really concerned with what your credit score is. If you accept their loan offer, then they will do a hard credit check, more as a formality. However, the credit check itself is not used in the lender’s decision-making process. If you are employed and can provide proof of income, this is usually all they need to know in order to approve your application and offer you a loan.

Instant Approval

One of the biggest advantages of getting a payday loan is that you can get an instant approval after submitting your loan application. There isn’t the traditional underwriting process that you see with regular installment loans, personal loans, or even some physical payday loan branches. From the time you submit your application until you have an approval and loan offer is less than 2 minutes! You can literally submit your application online, go to the kitchen to get a drink, come back to your device, and see the results of your loan application. That’s awesome!

Hopefully now the buzzwords – payday loans online no credit check instant approval – make a little more sense and have cleared up any questions you may have about what all of that means.

Some Important Considerations

Payday Loans Online – No Credit Check – Instant Approval

Payday loans are beneficial for a lot of people for many reasons. However, you should only consider getting a payday loan if you plan ahead and know for sure you can pay back the loan on time. If something happens unexpectedly, and you are unable to pay the loan back by the due date, do your best to pay it back as soon as possible. A lot of lenders will work with you and most will grant you an extension if you just ask for one. It will be well worth it to do everything you can to pay back the loan on time, even if you have to get an extension. Some people who don’t pay back their payday loan on time end up getting caught in a vicious circle of recurring debt. It ends up costing more and more in interest and fees, and quickly becomes a significantly higher financial obligation than what it was initially. While this type of loan offers a lot of advantages, keep in mind that if you really want to enjoy the benefits, then you must do everything you possibly can to pay the loan back on time.

The reasons to take out a payday loan are virtually unlimited. You may need help paying bills ASAP, immediate cash for an expense you hadn’t planned on, a medical emergency, or maybe there’s someone special you just want to splurge on with a nice gift. Whatever your reason for getting one of these payday loans, they are the ideal answer to most of your immediate cash needs.

There are also some unique situations where taking out a short term payday loan is the perfect answer. One situation is if you are in danger of not being able to make a credit card or installment loan payment, and the late fee would be more than the fee and interest for a payday loan, it would make sense to go ahead and get the payday loan to avoid having to pay the late fee.

Similarly, a payday loan could help you keep a clean credit history, or at least prevent a negative mark against your credit. Missing a loan or credit card payment can negatively impact your credit score for several years. Therefore, in some cases, it would make a lot more sense to take out a payday loan to avoid missing a loan or credit card payment. Paying the expense of the payday loan could be worthwhile if you need to take out a loan within the next few years and need your credit score to be as high as possible.

If you’re considering maybe getting a payday loan online, go ahead and apply online. Remember, it’s only a soft credit pull, so it won’t affect your credit score just for applying. Then if you like the terms you are offered, you can accept, or you can reject the offer if you don’t like it.

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Mike Lombardi, MBA

Mike Lombardi, MBA

Personal Finance Expert

Mike Lombardi earned his bachelor’s degree in Finance, as well as his MBA in Economics. He has been in the personal finance industry for 24 years. He spent 12 years working for a large bank as the loan operations manager before switching gears and managing client portfolios at a small wealth management firm. He enjoys helping people develop and implement a personal budget, formulate a strategy to improve their credit scores, and show them how to work towards becoming debt free by designing a debt reduction plan unique to each person’s situation.