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Can Payday Lenders and the CFPB Come to an Understanding?

There are lots of subjects that divide people on a regular basis. Folks who love one form of music, may despise another musical form. Some people think spending time outdoors is amazing, while others don’t like to venture too far from their favorite living room chair. And forget about trying to get conservatives and liberals to agree on much of anything. Another decisive issue that is getting a lot of attention lately is that of short term lending. Some consumer advocates believe that these loans are the worst thing in the world, while others believe that payday lending companies provide a valuable service to their customers. There’s just no reaching a middle ground on some subjects.direct_payday_loans_pros_cons1

Many who fashion themselves as consumer protectors have a deep seated hatred of short term loans, and view the providers of these loans in a bad light. People who tend to favor consumer choice usually believe that grown people in this country are fully capable and allowed to make choices about the types of financial products and services they choose to pay for; even if a loan has expensive fees to pay, these folks believe that everyone should have the freedom of choice to decide on their own.

As far apart as these two groups seem to be, there may actually be some common ground that both sides are not even aware of: They both want consumers to get reasonable access to lines of credit, and expect that those products are priced fairly for the people that use them. Once you get past that basic fact, though, the contention between both sides begins to heat up to a point where some people get downright nasty about the topic.

For example, there are news stories now about how the Consumer Financial Protection Bureau (CFPB) – the most powerful and vociferous of all the groups against payday lending – has been violating the sovereignty of Native American tribes as a part of their efforts to introduce new regulations on the payday lending industry. This industry happens to be a major source of income and employment for some tribes. This is a precarious battle that will likely wage for some time to come.

The Public Affairs Head for Advance American Jamie Fulmer said, “What strikes us is that when the Bureau was established by Professor and now Senator Warren and Director Cordray, there was a lot of talk about the need not to dictate consumer choice but to provide a level playing field across a broad spectrum of financial services companies.” Fulmer went on to note that the financial landscape right now is not so level right now.

In a recent interview Fulmer explained, “Customers are redefining what mainstream customer services are. We think the type of loan we are type of providing falls strongly in the mainstream, because consumers find that they have an increased, yet regular, need for small dollar short-term credit. We believe that was the correct approach and it was rooted in ensuring simplicity, transparency and full and complete and understandable disclosure.”

As to whether or not the CFPB and the major players in the payday lending industry can ever come to an understanding is something that we will all have to wait and see. However, more people – both private citizens and elected officials – are now starting to come out of the woodwork in support of the freedom of financial choice that payday lenders provide to their customers. Proponents of payday lending seem willing to reach common ground; the ball is now in the court of the CFPB.

Are Critics of the Payday Lending Industry Biased?

If you were to do a Google search to look for articles about the payday lending industry, chances are you’d find hundreds of articles and op-eds that preach about how evil this industry is. One such op-ed was recently written by Gary Kalman from the Center for Responsible Lending. In this piece, titled “Stop the debt trap” Kalman uses a tone of sternness when talking about payday lenders. In fact, this op-ed pretty much condemns the industry altogether. Despite the fact that CRL has waged a war against payday lenders for decades, and has even done so via subsidies received by taxpayers and utilizing federal regulators, the fact of the matter is that all of these criticisms of payday lending continue to drive business to Self-Help, a credit union that is professionally affiliated with the Center for Responsible Lending.Banks Being Scrutinized By Regulators for Payday-Like Loans

Kalman, for his part, continues to state that his organization is simply “fighting to rein in the abuses” (alleged abuses, we might add) of payday lenders. This is both misleading and insincere. And the same thing could be said about how the Center for Responsible Lending has continued to malign the actions and character of both payday lenders and the very customers who depend upon these types of loans.

The bottom line is that Self-Help makes it a point to offer financial services/products that would definitely derive a benefit if payday loans were to be completely removed from the market. The network of businesses and groups that make up the Self-Help group – which have already received a combined $380 million-plus in loans, grants from the government and other taxpayer funds – has put millions of dollars into the pockets of lobbyists who are petitioning the federal government to take more serious measures against payday lenders, including putting new regulations on the industry.

The Center for Responsible Lending spouts off about being the “customer advocacy” branch of Self-Help. It has made use of the funding it receives – funding it has been hauling in for twenty years now – to fuel its smear campaign against the payday lending industry. It continues to disparage the industry and the loans that it offers, and to anyone willing to look into the matter, it is looking to get rid of its stiffest competition; noting more, nothing less…

Experts on the subject have been wondering if Self-Help’s financial products are more costly than the terms that most payday lenders offer. The fact of the matter is – regardless of affordability – Self-Help offers short term loans to consumers. As such, the organization has directly benefited from the restrictions they have fought so hard to saddle the payday lenders with. The elephant in the room is just how this organization is getting away with using the government to punish its competition, while they continue to carry on business as usual.

Recently, a new regulation was passed into law in Oregon. This law puts a cap on short term loan interest rates and “…reduced access to payday loans in Oregon, and … former payday borrowers responded by shifting into incomplete and plausibly inferior substitutes,” according to one published study. “Most substitution seems to occur through checking account overdrafts of various types and/or late bills.”

With all of this in mind, it is clear that many of the payday loan opponents out there – especially those who are especially vocal about the subject – are biased. In the case of the Center for Responsible Lending, it is apparent that this organization is biased for a very good reason: The elimination of payday lenders would be most profitable for this group, indeed!

Payday Lenders Changing up Business Tactics Prior to Government Crackdown

Providing loans to people who are strapped for cash has proved to be a good way to make a living for the owner of Bellicose Capital. This man’s name is Matt Matorello. Matt’s company helps to run some Michigan payday lending websites for a Native American tribe. The websites offer small loans to customers and charges fees in return for making these loans. Over the years, Bellicose has collected a lot of money; to the tune of tens of millions. The tribe that this company works for keeps roughly 2 percent of the earned revenue. It looks like Matt is going to sell the business to the tribe for about $1.3 million dollars on the front end, with as much as $300 million dollars in payments down the road, depending upon the success of the business. The company projects that it will earn nearly $58 million each year down the road.payday-online

Martorello is not the only owner of a payday lending company who is looking to get out of the industry lately. There are many payday lending companies that are overhauling the ways they do business. These lenders are changing up the products they offer or moving their headquarters to countries outside of the US. A major reason that so many lenders are either getting out or changing their ways seems to be due to the Consumer Financial Protection Bureau getting ready to put now restrictions and regulations in place in 2016. These regulations have been over four years in the making, and the CFPB has not yet finalized all of the details. They have stated, though, that their new rules will prevent borrowers from taking out short term loans that they cannot afford to pay back and from taking out multiple loans at the same time. Lenders believe that the CFPB is on a mission to destroy payday advance loans and other short term loans. These regulations leave the lenders with few options other than to change the way that they do business.

According to an analyst at Height Securities named Ed Groshans, “The CFPB made it extraordinarily clear that the path they’re going down is going to eliminate the vast majority of payday lending.” Payday loans are short term loans that require the borrower to either write a postdated check or allow lenders to make automatic withdrawals at the agreed upon repayment date. The new regulations will cover other alternative lending products and services that allow people to pay back their loans over a longer period of time. Bellicose, the company we told you about earlier, is a consulting company and not a lender, though the company does specialize in short term installment loans.

Up until now, most payday lending regulation has happened at the state level, and the rules have been well understood by lending companies. Some lending companies have struck deals with Native American tribes. Some critics call these tactics “rent-a-tribe”, suggesting that lenders and consultants are only doing business with tribes in order to skirt existing payday lending laws. With the new regulations being handled from a federal level, though, it will be increasingly more difficult for lending companies to do business. Many experts believe that the CFPB has no business getting involved from a federal level, being as so many state laws have worked well for both lenders and borrowers over the years. As is usually the case, however, the CFPB is proving it is truly a branch of the modern day American government by doing all that it can to overstep its boundaries and to make doing business even more difficult than it already is for short term lending companies. It’s no wonder so many lending companies are changing things up in order to avoid dealing with the new regulations that are about to take effect.

A New Perspective on the Debate about the Payday Lending Industry

Other than the estimated 12 million people who take out payday loans each year, just about everyone else despises these types of loans. Those who have taken up arms against payday lenders include consumer advocate groups, clergy members, writers, professors and even the President of the United States. Is it really right for all of these people to hate the payday lending industry, though? Many of the aspects of payday loans that people seem to vilify the most – ongoing debt cycles, allegedly targeting low income people and minorities – don’t really prove to be true when one takes an honest look at the short term lending industry. This is not to say that the industry is perfect, by any stretch of the imagination. However, it is in everyone’s best interest to learn the truth and then to make a judgement call from there.

Let’s take a look at a few aspects of short term loans and see if it is really justifiable for anyone to outright hate the payday lending industry in this country.

Payday Loan Fees

payday-onlineWhen people write scathing articles about payday loans, they often focus on the fees that the lending companies charge. At many payday lending locations, the lenders charge about $15 dollars for every $100 that is borrowed. Those types of fees would be alarming if they were attached to a mortgage or a high dollar loan. But considering that the majority of borrowers understand these rates for what they are – flat rate fees, and not yearly percentage rate fees – one should come to the conclusion that these rates are not all that high or difficult to repay.

And there are plenty of payday lending companies for people to choose from. It is not like there is a monopoly on this industry, and that borrowers are forced to pay these types of fees by a single lending company that is controlling all of the short term lending going on in the United States. There are thousands of local lending locations and hundreds of online lenders that people can choose to get loans from. Of course, some people are disturbed by the fact that there are so many payday lending locations. You don’t hear those same pundits getting upset about the number of McDonald’s locations, do you? Of course not. In a free market economy, businesses are free to develop and thrive IF the market for the businesses’ services or fees actually exist.

This leads to a very interesting point that many who oppose payday lending never seem to get: There is a great demand for short term loans all across the land. People who either don’t or won’t deal with mainstream banks and lenders, still need to borrow money. If these people – hard working adults who understand exactly how much they need to pay back within a short loan term – choose to do business with payday lender, who is anyone else to try to eliminate this industry; and industry that provides vital financial services to a large section of the population?

The fact of the matter is that there is no way to make everyone see eye-to-eye about the topic of the payday lending industry in the United States. However, the time has come for people to get a better understanding of this industry, and some of the reasons that people seem to loathe payday lending companies as a whole. It is only when we can get past the rhetoric and accusations that we ever get a better handle on any topic that might be considered controversial to others.

Florida Wants Federal Government to Leave Payday Lending Businesses Alone

In a day and age when it seems like individual states are constantly caving into the demands of the federal government, it is refreshing to see that some states are standing up for themselves. Case in point: the financial regulators and lawmakers in the Sunshine State are making it very clear that they want the federal government to back off with regards to the Florida payday lending industry.

Speaking about the Consumer Financial Protection Bureau’s proposals to overhaul and regulate the payday lending industry, the commissioner of Florida’s financial regulation office, Drew Breakspear said, “If they really wanted to be helpful, they’d leave us alone.”

Going with the success that Florida has had with self-regulating the local payday lending industry, Mr. Breakspear thinks that a best case scenario would, “… take the Florida model and mandate it for the other 49 states. We have a very good model here, and it works. Because we’re on the ground, we’re in a much better position to regulate issues as they come up and take enforcement actions if people are doing something incorrectly.”

Back in the first quarter of the year, the CFPB put together an outline to a proposal that would regulate the payday lending industry. The bureau argues that storefront lending locations all over the country were essentially trapping customers in cycles of debt. According to the CFPB the debt cycle is pretty much the process of lenders giving loans to their customers and then forcing borrowers to take out additional loans to pay off the original loan. Some reports from the bureau indicate that 10 percent of payday lending cases, the borrower takes out a series of payday loans in order to pay off other loans. The proposed rule from the CFPB would make lenders go through a certification process with borrowers to ensure that they would be able to pay back their original loans without having to take out additional loans and that borrowers would have to wait 60 days between payday loans.

These types of requirements would essentially put Florida’s payday lending companies out of business and would leave millions of Floridians without access to short term lines of credit that they need to pay for emergency expenses.

Mr. Breakspear elaborated on the new proposals, saying, “People who take payday loans, some of them are desperate. A couple of years before I took this job, I was talking to a skier on a ski lift and payday lending came up and he said to me, ‘I took out a payday loan once.’ I asked him how much he took out. He said ‘$300 for 30 days.’ I asked him how much he was charged. He said ‘$42 — but it was the only way I could pay the bills. I would’ve paid $100 for the $300 loan if I needed it to feed my family. There’s a large base of people who need the loans. Yes, they’re expensive. But if you take them away, what do you replace them with?”

A study that was performed by Deloitte Consulting LLP lead to the official conclusion that the proposals from the CFPB could ultimately lead to “… the closing of most, if not all [small-business payday lending] stores, resulting in the loss of jobs for most, if not all employees.”

In 2014, 7.8 million payday loans were given in Florida from regulated, state licensed lending companies. Of those nearly 8 million loans, the Florida financial regulator only got 117 customer complaints logged. This is clear evidence that the regulations in Florida provide a balance of customer needs and interests of payday lending companies.

The Consumer Financial Protection Bureau Targets Offshore Payday Lenders

It comes as no surprise to find that the Consumer Financial Protection Bureau (CFPB) is consistently on the move to put pressure on the payday lending industry. With that being said, the CFPB recently filed a complaint against several jointly owned payday lending locations. The complaint alleges that the defendants have engaged in deceptive, abusive, unfair acts and business practices that are in direct violation of the Dodd-Frank Wall Street and Consumer Protection Act. A group of commonly owned companies, based in Malta and Canada, are alleged by the CFPB to have been engaged in a lot of unlawful practices, including collecting on loans that were void, lodging false representations with regards to nonpayment of debt and using illegal wage-assignment clauses in their loan agreements. The CFPB believes that these illegal clauses allow the lenders to take loan payments from the borrowers’ employers’ payroll systems.CFPB_2tone_Horiz_RGB-e1382623205988

The CFPB complaint is looking for refunds, restitution and injunctions to prevent future illegal lending acts. It comes as a surprise to see the CFPB reaching beyond United States borders. However, according to the Director of the CFPB, Richard Cordray said, “Companies making loans within the U.S. have to comply with federal law, and the Consumer Bureau will work to ensure that American consumers receive the protections and fair treatment they deserve.”

NDG Enterprise is a company with operations based in Canada and Mexico. However, NDG does offer Internet payday loans to people in all 50 states. This company has been targeted by the CFPB, with complaints that they engaged in unlawful lending practices, including the collection of funds that customers do now owe. These allegations go back as far as the summer of 2011. Most of the loans were given for 14 day terms and ranged in amount from $100 to $1500. The finance charges for these loans ranged from $19.98 to $26.98 for every one hundred dollars that people borrowed, according to the Consumer Financial Protection Bureau. The loan fees made these loans illegal according to the varying state laws. The CFPB claims that this fact makes the collection of the loans unlawful. The CFPB also stated that the defendants lacked the proper licenses to provide these loans, and that they violated the laws of dozens of state

The New York federal court filed a complaint that charges the defendants with violations of the Credit Practices Rule and the Dodd Frank Wall Street Reform and Consumer Protection Act. These two laws prohibit the use of deceptive, unfair or deceptive lending practices.

To make restitutions the CFPB has requested that the defendants pay monetary fines and that they provide financial refunds to consumers who received loans from these lending companies. Additionally, the complaint requests that future violations be prohibited and that the lending companies adhere to prohibitions against abusive, unfair, deceptive financial practices. The Consumer Financial Protection Bureau is the newest federal agency to be created, but it operates in such a way as to push its weight around when deemed necessary. Regardless of how someone feels about the short term lending industry, and the government groups that police such industries, it is troubling to see the CFPB taking action against companies that operate outside of the United States. The bureau has already earned a reputation for having a personal vendetta against companies in the US. It now looks like the CFPB is going to stick its nose into the business practices of companies that operated outside of our country. One has to wonder when the government is going to step in and hold the CFPB accountable for its gung-ho approach to business regulation.

The Harsh Realities of a World without Payday Loans

A lot of Internet journalists and bloggers like to give Florida a hard time. The Sunshine State certainly has its share of eccentric characters and unique settings. However, when it comes to payday loans, Florida may be one of the most progressive and on-the-spot states in the entire United States. As you probably know, the Consumer Financial Protection Bureau has been on a mission as of late to severely over-regulate the payday lending industry. Congress has finally wizened up to the new proposals from the CFPB, and one Florida Congressman has some harsh words for the proposed federal regulations that the CFPB is trying to push through.Instant-Cash-Advance-Online

Representative Alcee Hastings has been on a mission to raise concerns about the strict, new regulations that the CFPB has officially proposed over the past few months. Hastings believes that the federal laws would supersede the lending rules that are, by all accounts, working very well in Florida. Hastings says that the new laws could cut of short term credit for the working poor of his state; those folks who cannot get help from traditional banks when they need immediate financial assistance to get by from one paycheck to the next. The CFPB, for its part, states that it has a goal to stop customers from being forced to pay “exorbitant” loan fees, which the bureau says puts poor Americans into a cycle of never-ending debt. The payday lending companies warn that nearly 70 percent of their locations could wind up out of business if the new CFPB proposals are put into action.

Mr. Hastings passionately outlined his concerns during a speech he gave in front of the National Urban League Conference earlier this summer. He suggests that the federal government is introducing a dangerous double standard with regards to the problems that payday lenders faced compared to the bailouts that big banks got during the last great financial recession. He warned that this double standard would leave working class poor Americans in harm’s way if the local lending companies were to be forced out of business.

Payday lenders have been described by many of us, and many of you, and some in the administration, as predators,” Hastings told the crowd. “I want to remind you of something. When Ms. Lillie’s or Ms. Lizzie’s or Mr. Johnson’s lights are about to be turned off, regrettably they can’t go to Wells Fargo or to Bank of America for a loan. So they go to the local loan company and then we criticize those local loan companies. And I will remind you, and I was there, when the then Treasurer of the United States walked in and said that we were about to go under. And we talked about banks too big to fail. Well, it was not the little loan companies that damn near brought this country down. It was the big banks that did that, and don’t you forget it.”

Mr. Hastings is no stranger to this struggle, as he led the Florida congressional delegation in their fight against the CFPB’s regulations, which would essentially pre-empt the successful system that they have already created in the Sunshine State. It is encouraging to see elected officials realizing what a huge stake that they have when it comes to the new proposals from the CFPB. And by exposing the double standards that exist, maybe Hastings will get some much needed support from other concerned government representatives in the near future.

What you Really Need to Know about Payday Loans with No Credit Check

Unexpected expenses often happen at the worst time. With millions of people in this country essentially getting by from one paycheck to the next, it is tough to deal with those types of expenses. Cars break down, appliances go on the fritz and pretty much anything can happen that necessitates a little bit of extra cash. If someone needs say $100 or even $500 to cover an expense or pay a bill, it’s not like they can simply run to the neighborhood bank and get a quick loan. That’s pretty much why payday loans with no credit check offers from payday lenders are such a popular choice these days.

Payday loans have been in the news a lot lately; for better or for worse. Like anything else, there are people out there who are dead set against the payday advance lending industry. However, there are millions of people who don’t have money saved up for a rainy day. And lots of those same folks have had credit problems in the past. Being as banks and the big credit card companies run credit checks on people, a bad credit score can keep people from getting a small dollar loan or line of credit to cover life’s unexpected expenses.payday-loan-helps-build-credit

Let’s continue on and discuss how credit scores work with regards to taking out a small dollar, short term loan from a payday lending company. Since credit scores are used by so many institutions, including employers and insurance companies, it is a good idea for everyone to have a basic grasp on how their credit scores can affect their chances of getting a loan when money is tight.

Understanding Your Credit Score

We are going to discuss payday loans with no credit check a bit more. First, let’s take a look at how credit scores work. Having a financial problem or two can quickly lead to a lower credit score. People who file for bankruptcy or who make late payments to their creditors often find that their credit scores are negatively impacted. When people talk about their credit score, they could be talking about the score that is given by any of the three major credit reporting bureaus. However, the FICO credit score is the one that is generally seen as the most important.

Your FICO credit score can range from the lowest score of 300 up to a perfect credit score of 850. Unless you have had some major financial problems in the past, your score is probably not anywhere near 300. And unless you have managed to do everything perfect with regards to your financial past, your score is probably not perfect either. Most Americans have a credit rating that falls somewhere between the two extremes. But what makes a credit score “bad”? A FICO score of less than 601 is generally considered to be subprime (bad) by most creditors and banks.

Payday Loans with No Credit Check for Subprime Borrowers

When someone has a bad credit score, they can pretty much count on the big banks turning them down if they should need a loan. This is where payday lending companies come into the big picture. Payday advance lenders offer their clients payday loans with no credit checks required. To make a long story short, it does not matter how many financial mistakes someone has made in the past or how low their credit score is. If someone needs fast money, they can turn to payday lenders to get access to funds without worrying about their credit score holding them back. Being as millions of people have wound up with low credit scores because of all the worldwide financial problems of recent years, it is nice to know that people with less-than-perfect credit ratings can still get access to money when they need it most.

Important Information about Payday Loans with No Credit Check

Before taking out a payday advance loan, it is important to understand these types of loans inside and out. Here are some important pieces of information that you should keep in mind if you believe a payday loan is in your future:

• Payday loans are not designed to hang over your head for years. The whole point of these loans is to give someone cash until they get to their next payday. The average payday loan is paid off in full in just two weeks.
• A payday loan is an unsecured loan. There is no need to offer any property as collateral on the loan.
• To qualify for payday loans with no credit check, potential borrowers must be able to prove that they are employed. Borrowers should also have a checking account to provide automatic payment when the loan term is up.
Not paying a lender back on time will result in additional fees. These fees are laid out for you when you apply for a payday loan. It is best practice to avoid missing the originally agreed upon payment date.

Payday Loan Fees

We just mentioned late fees, but there are other loan fees that borrowers should be aware of. Payday loans, since they are short term loans, do not required borrowers to pay annual percentage rate fees, instead borrowers pay a flat rate fee to the lender when they take out their loans. Every lender charges different amounts for the loans that they provide. If you are going to take out a payday loan, either online or at a local cash advance location, make sure that you know exactly how much the loan fees are going to cost. As long as you pay back your payday loan on time, you should not have to worry about any additional fees.

This blog is filled with other helpful articles and posts about short term loans. We hope that you have learned a bit about the basics of payday lending from this introductory post. Thanks for stopping by and feel free to check out some of the other resources on this site to find even more helpful information.

All About Cash Loans No Credit Check Required

Despite resistance from some folks in the media and certain governmental bureaus, online cash loans no credit check required offers continue to grow in popularity. Everyone has been there before; it’s still a long way until payday arrives, but there are pressing expenses and bills that have to be paid quickly. For some folks, it might be a car repair that needs to be taken care of. For other people, it might be a need to pay the electric bill, without overdrafting their bank accounts. Regardless of the reason, the fact of the matter is that tens of thousands of people depend on the services that payday advance cash lenders offer.

Understanding a Payday Advance Loan

There is quite a bit of misinformation and misunderstanding swirling around about payday loans. Media pundits and watchdog groups seem to love to demonize this industry. However, recent actions by government representatives have clearly shown that these groups have been doing nothing more than picking on a quickly rising industry that does a lot of good for a lot of people.

Short term loans have been available for hundreds of years. In fact, not too long ago, employers used to offer short term loans to their employees. Those loans would be paid back from the employee’s next paycheck. That same model is still followed by lending companies that offer online cash loans no credit check required. These lenders verify that a potential borrower is employed and has a valid checking account. The borrower requests a certain amount of money (usually between $100 and $1000.) When the borrower gets paid from their employer on the next scheduled payday (usually two weeks after the loan is given) the principal amount plus any fees are automatically deducted from the borrower’s checking account to pay the lender back.

Payday Loan Fees

Every payday lender is different, so borrowers can expect some variance when it comes to loan fees. Payday loans include a flat rate fee. This helps borrowers to understand exactly how much they have to pay back, so they can budget accordingly for the fees. There are some payday lenders that charge roughly $15 for every $100 borrowed. Again, though, it is important to clarify the fee structure with a lender before taking out a short term cash advance loan.

Why Do People Need to Know about Cash Loans No Credit Check Offers?

There are millions of people with low credit scores. Traditional banks and credit unions will not lend money to people with subprime (low) credit scores. Because people with subprime credit scores still need to borrow money from time to time, it is easy to understand why payday lenders offer cash loans no credit check required to their customers. Payday lenders do not take credit scores into account, so they are able to provide loans to virtually anyone who is employed and has a bank account.

The Basics of Credit Scores and Reportscredit-score

Speaking of credit scores and credit reports, there are a lot of people out there who really don’t have a grasp on how credit scores actually work. There are three major credit reporting bureaus. For the sake of this post, though, we’ll talk about the FICO credit score, as it is the gold standard of credit reports. FICO credit scores start off at a very low 300 and max out at a perfect credit score of $850. You don’t have to be rich to have a great credit score, and you don’t have to be poor to have a low credit score. Your individual credit rating has more to do with how you have handled lines of credit in the past than it does with how much money you make.

So, with all of this information in mind, you may be wondering what constitutes a low credit score. Generally speaking, any FICO score that comes in lower than 601 is considered to be a bad credit score. People who have credit scores that are lower than 601 will find that it is difficult to get bank loans or credit cards with reasonable interest rates. People who have low credit scores can turn to online payday lenders to get cash loans no credit check required. Simply put, there are millions of people who would have to go without money for emergency expenses if it were not for online payday loans.

Do You Know if Your Credit Score is Bad?

People often assume that if they have low paying jobs or a few financial problems that their credit score is low. This is not true. The only way to find out if you have poor credit is to pull your credit report. The credit bureaus are legally bound to offer at least one copy of your credit report every calendar year. Pull your credit report and take a look at the details. Then look at the FICO score to see how you are doing. If you have a lower credit score and need to get fast cash, an online payday loan may be the best way to get access to fast cash for unexpected expenses.

Benefits of Online Cash Loans No Credit Check Required

When a borrower goes online to get a payday loan from a reputable lending site, they get the benefit of being able to apply for a loan without leaving their home. Online lenders allow people to apply for their loans in just a few minutes. This helps to eliminate the hassle of leaving home, driving across town and waiting in line to apply for a cash advance loan at a local lending location. Online payday lending companies usually approve loan applications quickly, and make sure that the funds are directly deposited into borrower’s checking or savings accounts on the next business day.

We hope that you have learned a bit about online cash loans no credit check offers from this post. Don’t forget that this website is filled with helpful information, posts and the latest news about the payday lending industry. Feel free to look around to find more informative posts while you are here…