Securing Payday Loans With No Credit Checks Makes A Real Difference

Bad credit is never a good thing, but it not the death-knell to funding so many of us believe it is either. There are loan options available to people with even the worst credit scores. The fact that it is possible to get approval on some loans, like payday loans, with no credit checks ensures this is the case.

Bad credit scores are not debilitating, and actually enjoy only a fraction of the significance traditional lenders would have us believe. Income and a suitably low debt-to-income ratio are far more influential factors, and while guaranteed loan approval never really exists, these loans are the closest to it.

Still, there is no such thing as free money, and there are clear compromises to accept before a payday loan can be secured. They may be the fastest and most accessible route to cash on the market, but they are also the most expensive.

What is a Payday Loan?

Getting a payday loan with no credit check is not the ground-breaking development it might seem. These loans have been available in one form or another for decades, and bad credit scores have never had any significance to them. This is because the loan is granted on the back of an upcoming paycheck.

The biggest advantage is that approval is very easy to attain. It is not exactly guaranteed loan approval, but all that is required is that the monthly income be sufficient to make the repayment in one lump sum. And the fact that credit histories are not checked out means that cash can be secured quickly in times of financial emergency.

However, the loan limit is set at ,500 while the interest rate is very high (sometimes 35%). And since the term can be as short as just 2 weeks, the pressure to repay a payday loan can be extreme.

Why No Credit Check Works

Lenders never turn to bad credit ratings to decide the fate of a loan application. There are more pressing factors, and given that the recent economic developments have left many honest borrowers with poor ratings, they no longer give an accurate indication of the kind of risk involved in any loan deal. So, the approval of payday loans with no credit checks does make sense.

What is more, because these loans are so much more accessible, with practically guaranteed loan approval, a greater volume of loans are granted. So, ignoring credit histories makes good business sense.

With no credit checks, the focus of the approval process is correctly centered on the fairest criteria - income. So, despite the pressures involved in making repayments in such a short period of time, a payday loan is sometimes too good to be ignored by borrowers.

Other Points to Consider

Approval on payday loans with no credit checks rests on the income, not on their credit scores. Normally, debt-to-income ratios, which stipulate that no more than 40% of income be dedicated to repaying debts, would also play a significant part. But since these loans are typically repaid in one lump sum, they have little bearing here.

A practically guaranteed loan approval can be enjoyed if the income is large enough to cover the repayment in one go. For example, a ,500 loan at 35% will require ,025 to clear the debt. This is a large sum to take out of a paycheck, so it is essential that the paycheck is big enough to accommodate it.

However, a payday loan is still the fastest way to emergency funds, making them highly attractive despite the extremely high interest rates charged and the extremely short term of the loan. With that in mind, be sure to check out several options online before agreeing to take out a loan.

Stephen Fry and Two New Teenage Credit Card Fraudsters: Spot the Difference

Two British schoolboys, Nick Webber and Ryan Thomas, were arrested earlier this year on charges of a multi-million pound internet credit card fraud. It is alleged that they managed to hack into over 65,000 bank accounts and sell the details on a dodgy internet site. Apparently over £8 million was subsequently stolen from the accounts. Other alleged illegal activities by the young gentlemen included running a website called 'Ghostmarket', which offered advice to crooked customers on how to use stolen card details to buy goods, wire cash and call sex phone lines. Sentencing is due on February 28 2011.

Stumbling upon this article on the Sun's website brought back memories of an earlier story about that other infamous teenage card fraudster Stephen Fry. In the latest volume of his autobiography, 'The Fry Chronicles', he relates how, as a teenager, he once pilfered a credit card from a friend of his parents and used it to fund a Bertie Wooster-style spree at the London Ritz. Playing truant from school, and dressed up in his grandfather's clothes, he managed to spend two days propping up the bar, sipping cocktails and smoking Balkan Sobranies. He was eventually discovered, expelled from his public school, and detained for three months at Her Majesty's pleasure in Pucklechurch Prison, a Young Offenders' Institution near Bristol. Thankfully he survived this experience without sinking into a life of crime and depravity, achieving a First at Queens's College and going on to become one of the best and brightest British stars of both television and the cinema.

Like Stephen Fry, Nick Webber is also a Public Schoolboy; like him, he was first arrested back in October 2009 after running up a bill of more than £1000 in a ritzy London hotel using a 'compromised credit card'. Why then do these young men strike me as so much less delightful than Stephen Fry? Maybe it's because their ill-gotten gains were used to finance a life-style including exotic foreign holidays, designer clothes and a Hummer 4x4 (despite the fact they have not yet passed their driving tests).

Let us give them the benefit of the doubt, however, and hope that they too will go on to become polymaths and national treasures…Somehow I seriously doubt it, but we can always hope. They are clearly intelligent, ambitious and resourceful youths, to say the least. Perhaps, like the young Stephen Fry, they will be sent to a Young Offenders Institution, similar to the now-defunct Pucklechurch Prison, learn useful life-skills and go on to become pillars of society. If the state of our prisons is a fair measure of the state of our society, Stephen Fry's 3 months at Her Majesty's Pleasure was a good advertisement for Britain and its criminal justice system.To be strictly fair, I don't think Stephen Fry would be too happy if I ascribed his success solely to this early incarceration in a young offenders unit…there may be an element of natural ability involved too.

Post Script. Is this story actually for real? I mean to say, 'Nick Webber' accused of online fraud?