Payday loans are short-term loans intended for people who need money immediately and have no time to deal with all kinds of bureaucracies involved in borrowing money. Conventional lenders carry out different security checks and verifications, which are not done by payday lenders. The reason for why payday lenders don’t conduct credit checks, employing paperless procedure is the assumption that all borrowers have poor credit rating. About 20% of all the borrowers default on their payments, but lenders still make money. Payday loans are more expensive than any other type of loan. The price covers the losses incurred from the defaulters.
How to apply for direct payday loans online?
In order to apply, you need to find a site that offers an online application, which you already have. The application process involves a short form (fully electronic). There is no faxing involved in the process. Direct lenders will never ask borrowers to submit any papers.
No credit check
Direct payday lenders don’t conduct the classic credit check with credit reporting agencies. Of course, they may resort to other types of verification involving agencies such as Teletrack or Telecheck. Those are completely different checks that don’t harm your credit record. (Bear in mind that credit check can adversely impact your credit. Borrowers should avoid credit check as much as possible).
Direct payday loans are available 24/7, including Saturdays and Sundays. All applications are processed instantly online. The approval process takes only a few minutes. Once you are approved, you can expect money on the same or the next business day.