Do payday loans with no credit check really exist?

Given that nowadays online money lending and payday loan companies
promise their customers quick disbursement of loans irrespective of their
credit score, it seems like “Any credit accepted” has become a new gimmick.
So it is absolutely normal to ponder upon what truly the lenders mean when
they say no credit check or any credit accepted. In general, it implies that
the loan specialists do not care about your credit score at all or it will have
practically zero impact on whether you are allowed a loan or not. Usually the
lending agencies that promote no credit check are different from banks and
need to follow various regulatory guidelines. They have varied criteria for
choosing who they can and can't approve a loan for.

Now some might think that getting approval for a payday loan without credit
check is impossible in Canada. In fact, no credit check payday loans are
quite common in the country nowadays and can be a splendid alternative to
traditional loans from financial institutions and banks. “No credit check”
moneylenders do not depend on your credit score to verify your
creditworthiness. However, they need an alternate way to assess their
prospective borrower’s financial situation to determine if they can repay the
loan.

Before we dive deeper into the no credit check loans facts, lets first
understand why credit scores matter and what factors impact it.

Significance of Credit Score

We all know that poor credit score creates problems, but do you know how it
is calculated? Equifax and TransUnion are credit reporting agencies in
Canada who would always have information when you open a credit account,
the way you use credit card and pay it back, your loans, repayment history,
mortgages etc. On the basis of this information, you are assigned a score
ranging from 300-900. Those who never opted for any kind of loan or
mortgage or line of credits are likely to have no credit history. In other
cases, if the credit score is towards the lower side it would indicate
bankruptcy. This keeps the lenders wondering whether you are financially
responsible enough before they sanction a loan for you. They might view
consumers with no credit history and lower credit score as a potential risk.
On the contrary, higher the credit score higher are the odds of loan approval
with a higher limit and relatively low interest rates. Following factors
positively affect the credit score:

 Payment history for consistent bill payment, loan repayment and/or

mortgages.
 Outstanding debts owed on all loan and credit account, indicating
available credit already used and remaining debt.
 Length of credit history showing on-time payments made and
responsible handling of credit in the past.
 New or recent credits taken.
 Credit mix showing different kinds of credit usage in moderation.

Remember it is not just the credit score that matters when it comes to any
loan approval. So what are other aspects or credit score alternatives that
moneylenders utilize to gauge the creditworthiness of a borrower? But
before we do that, let's answer the question, do payday loans with no credit
check really exists?

Yes, Payday Loans With No Credit Checks Really Exist

Certified payday loan lenders, like Friendly Lender, provide hassle-free

online payday loans with no credit checks. They rely on employment and
banking information to assess your capacity to repay the loan and do not
make any formal inquiries to major credit bureaus. Should you work with a
loan specialist that does not consider credit check in their approval systems;
you'll typically be required to furnish one of the following documentation:

Bank Statements

By looking at your bank statements moneylenders can get a fair idea about
money that comes in and leaves your account on a monthly basis. This
actually enables them to understand if you already have too many financial
obligations or if you can afford to pay back the loan with stipulated schedule
based on your statement. You can handover the bank statements using:

 E-statements from banks using the online banking portal.

 Immediate banking verification by logging into your online bank
website and providing the lender's software permission to
 automatically take snapshots of account to build a report. Note the
lender can only see your ports and not the actual account details
 Fax the bank statements to the lender, however, modern online
payday loan lenders do not ask to fax documents but rely on the
internet to do it as mentioned in the above options.

Paystubs/Proof of Income

All responsible moneylenders ensure that their clients do not face additional
financial burden through loans. Also as per the regulation in Canada, they
can lend you a loan only up to 50% of your total income. Your timely
paystubs provide adequate assurance that you are paid enough and will be
able to fulfill the debt in time. So your paystubs serve as proof of your
creditworthiness and fact that you can afford a loan.

Apart from the above two documentations, the lenders would also ask for
your age, address, identification and contact details. They would require
your bank details in order to process the loan and remit the amount directly
into the bank account.

When it comes to tacklinga financial crisis, credit cards may not be easy to
get on such a short notice or you might be too proud to ask for financial
assistance from friend or family. Payday loans can come handy in such
situations as they are legal across provinces of Canada. Hope we were able
to throw some light on “no credit check” payday loans and that the payday
loans with no credit check are no longer an illusion to you!