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Online Payday Lenders Know Bad Things Happen To Good People

What makes direct online payday lenders a good source of fast money?  It may have something to do with the simple application process and the no credit bureau check loan approval process. A short-term loan money lender has no direct contact with the credit bureaus so past mistakes with other creditors will not hurt your approval chances. What matters most, is how you are handling your income now.

Online payday lenders do not judge applications based on credit score.

When a best online payday loan lender receives an application, the approval process will take under an hour. Why can these lenders get away with such a short amount of time spent on each application? The answer is simple; they do not dig deep into the financial past of each applicant.

What matters to direct lenders is the here and now. A bank statement is an important piece of financial information to a short-term lender. It speaks loudly as to whether or not your current money management skills are effective. No-fax loans make the process simpler since there is no need to email or fax in bank statements. As technology changes, these lenders are keeping up to improve functionality and customer convenience. Once you find the best online payday lender with low fees and a great customer service reputation, you can be confident that your approval will not have a disapproval based on credit score judgment.

Many other types of lenders will look at a credit score and already have judged the applicant. It is unfortunate for many as their past is held against them. A credit score will contain seven years’ worth of money management history. There is very little room for understanding of how certain situations may have promoted the problems rather than a person’s actual money management skills. Credit bureaus don’t ask why lenders are not getting paid. They don’t look into any personal matters or consider extreme circumstances which may have led to low scores.

  • Has the person lost his/her job or had their hours cut back to affect debt to income ratio and affordability?
  • Have there been any medical mishaps which interfered with earned income?
  • Has there been a divorce or death of a wage earner?

Any one of these things happens and financial matters will explode in a negative direction. If a person then needs to borrow money or open a new line of credit, the judgment by the lender or creditor will be based on what they see on the credit history.  Their approval process won’t measure the here and now. A direct online lender will accept a bank statement to view how money has been handled in the last few weeks.

Because these short-term loan lenders only offer small loans to qualifying applicants, they are not the best resource for people needing larger amounts of cash. Obtaining multiple short-term loans will only put a bank account at further risk of money troubles. In fact, a responsible lender will not approve a new payday loan when other loans are currently unpaid.

Short-term payday loans are risky for the lender. It is money sent out basically overnight and the borrower has two weeks to pay it back. Sometimes money problems last longer than two weeks and the lender does not see full payment in return. These lenders will look at a person’s payday loan history. If the borrower has defaulted on other payday lenders in the past few years then their application will be denied. *Please note – not all direct lenders look at other payday loans history while some will search back a few years.

The responsible lenders that do look in the past are seeking out how you handle short-term loans, not credit cards or installment loans. Find the best online payday lender for your situation, past and present.



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