• Choice,  Credit History,  Loans

    Will One Receive a Payday Loan Without Credit History?

    It is only natural that a lender is interested in accepting reliable borrowers who are likely to repay on time. Thus, loan eligibility standards may be rigid, which is especially true for conservative banks offering long-term borrowing options. Payday loans without teletrack, however, are known to have multiple advantages over traditional banking, including softer application requirements. How lax are these, and could you still secure a payday loan with zero credit records?

    Borrowing history is the main and the most telling indicator of an applicant’s ability to fulfill their obligations. The more loans you successfully repay – the better your score and the more willing a lender will be to accept you.

    Understandably, in online lending, so drastically different from face-to-face interviews, these records are the first thing a lender will consult.

    Here, non-existent credit records may be viewed more favorably than bad credit records, as the latter clearly indicate an applicant’s financial irresponsibility. Moreover, credit history is not the only source involved.

    no teletrack payday loans

    Upon receiving your application, the lender will initiate remote identity checks. They will access your credit records to verify identity and establish your trustworthiness.

    If credit bureaus return no matches, which means that no such records exist, the lender may turn to alternative public sources of data – for example, rental payments, property deeds or utility bills – to find transactions in the applicant’s name. Such data may be accessed through third parties (for instance, RSA). Finally, if these efforts fail as well, the last resort is a manual review.

    This naturally requires time and manpower, so not all lenders will go to such lengths. However, if they do, you may be asked to do the following:

    1. provide an email, fax, or upload a copy of a photo ID;
    2. answer additional questions by phone;
    3. visit the company’s office for an in-person interview.

    With a steady source of income, absence of borrowing history does not necessarily present an obstacle to payday lending. For young people, the absence of borrowing data is an obvious problem.

    How can you open your credit history unless you are allowed to take out loans? The same applies to recent immigrants who are yet to acquire credit records. Such applicants are usually rejected by conventional lenders, which makes cash shortages especially hard to cope with. This is exactly when payday loans may be a blessing.

    A comprehensive approach of a payday lender may ensure responsible first-time borrowers still get a chance to resolve urgent financial problems.

    By using and successfully repaying payday loans, they have an opportunity to build up a favorable credit history. This, in turn, opens them access to more complex borrowing options in the future.

  • Loans

    Identity Theft In Payday Borrowing: What Should A Victim Do?

    The Internet has revolutionized the way financial services are rendered. The accessibility of online payday loans allows borrowers to secure funds in a matter of hours. However, identity theft has emerged as an unwanted byproduct of this convenience. Despite incessant enhancement of security measures, the problem still exists. What can you do to safeguard your data against sneaky fraudsters?

    Online fraud may target anyone – even Americans who have never borrowed money. With a payday loan, fraud is insidious, as it may take weeks before suspicious activity is noticed – until fees start mounting. This makes a quick solution unlikely. Naturally, lenders will want their money back, and they may not show much sympathy. In any case, it is wiser to take preventive measures than waste several years in nerve-racking legal battles. Here are three basic steps to protect your data online:

    • create better passwords and do not email them under any circumstances;
    • protect your computer with anti-virus software and encrypt sensitive information;
    • burn or shred sensitive paper documents.

    By gaining access to personal data, fraudsters may complete a loan agreement online and access the funds landing in the victim’s account, whilst remaining unnoticed. Here, expediency is a double-edged sword. Although US states limit payday loan amounts, the incurred interest and penalties for missed payments may haunt you for quite a while. Fraudsters may continue using your details to secure several loans, adding fuel to the fire.

    Once you become aware of suspicious transactions, immediately report to your local police department. As a rule, a detective will be assigned to investigate, and the local prosecutor will later be sent a report. A police report is essential to clear the victim’s name and have credit reports corrected. It is what most creditors require from a victim to remove their name from fraudulently obtained debts, and even when they find no fraud, credit bureaus may still conduct their own checks. Phone calls alone do not suffice. Send the credit bureaus a formal written dispute under the Fair Credit Reporting Act and provide a copy to the creditor. You need to include an identity theft report, which comprises a police report and an identity theft affidavit. It is always best to hire a qualified attorney to guide you through the necessary steps and structure your evidence.

    It is always wise to protect sensitive data, which reduces the chances of you falling victim to identity theft. However, when precautions fail, there are clear steps you can take to clear your name and repair your credit record. This takes time and patience, but the law is always on your side.

  • Loans

    Payday Loans: Why Borrowing Online Is Most Convenient

    The advent of the Internet has revolutionized the global economy and the way financial services are provided. While online banking enables you to manage your accounts, arrange transfers and view transaction details from the comfort of your home, the world of accessible lending has also benefited from digitization. With payday lenders offering their services online, you may now skip the hassle of conventional bank offices and secure a short-term loan in a matter of hours. All you need is a bank account and a steady source of income. Let’s zoom in on the details of the process.

    The idea is simple: if a cash shortage occurs, you may take out quick and accessible payday loans through online lenders. To avoid penalties for unpaid bills, you may cover emergency expenses with these borrowed amounts, repaid when the next paycheck arrives. Typically, the term spans 2-4 weeks, and the maximum sums are capped by local state legislation.

    In the past, borrowing required visiting a bank office and waiting in line. Today, payday loan applications are easily filled out and submitted online, and approval is received in a matter of hours. Fill in your details, specify a source of income, include a recent bank statement and your account number. Once you click “submit”, the lender will start remote identity verification procedures, assessing your borrowing history.

    This does not require your presence – the lender will reach out to credit bureaus or search in alternative sources of financial records. Normally, all communication is done by phone, chat, or email, so you can even answer lenders’ questions while on the move. If approval is received, you may expect to see borrowed funds in your account on the next business day. Repayment of a payday loan is done just as conveniently, with the lender withdrawing the sum on the due date, possibly via direct debit or a post-dated check. Early repayment is possible and usually entails no fees.

    All these details vary between lenders, but they must all be stipulated in your loan agreement. Here, agreements with online lenders are no different from conventional ones. As  binding two-party documents, these must be studied and understood, and it is best to ask the lender for clarification when necessary, which is also easily done remotely. Aside from the loaned amount and the due date, your agreement will also define all charges, including interest, penalties and fees. The agreement must list all your rights and duties, ensuring that all procedures are clear. Attention to detail will guarantee the due date brings no surprises.

    Overall, online payday borrowing offers multiple advantages over in-person bank visits. Aside from the significant time-saving and accessibility, it makes all borrowing procedures prompt and simple, providing a detailed legal agreement protecting the rights of the customer.