no credit check pay day loans

IMPACT: Credit union swaps payday loans for friendlier offering

Mountain America Credit Union had offered its 320,000 member-owners a “MyInstaCash” loan that topped out at an 876 percent annual interest rate for a $100, five-day loan.

These short-term, unsecured loans are usually due when the borrower receives his or her next paycheck. Consumer groups say lenders charge exorbitant interest and often trap borrowers in a cycle of debt that they can’t escape.

The new "Helping Hands” loan complies with rules set by the National Credit Union Administration that permit federal credit unions to lend at a maximum 28 percent annual rate provided they follow certain guidelines, such as giving customers more time.

"Our intent is to offer a payday lending alternative that will help these members get out of the payday lending cycle," said Sharon Cook of Mountain America, in an emailed response to questions.

Mountain America, a large credit union with $2.8 billion in assets, is one of several that skirted the interest-rate-cap rule by partnering with third-party lenders that financed the loans. Customers were directed to these lenders through a link on the credit unions’ websites.

Those lenders would then turn over a finder’s fee, or a cut of the profits, to a separate business, set up by the credit union.

The third-party lender that backed Mountain America’s payday loans was Capital Finance, LLC, located just a few miles from Mountain America’s headquarters in a Salt Lake City suburb.

But Mountain America wasn’t just a client of Capital Finance. It was also — at least as of this past spring — a business partner.

In a telephone interview in April, Capital Finance executive David Taylor said that Mountain America and another large Utah credit union, America First Federal Credit Union, are part owners along with Capital Finance of “CU Access” — another payday product for credit unions (CU Access appears to make loans that comply with federal guidelines).

No Credit Check Payday Loans Online

There is no consensus about current world economy state, some think there is no end in sight and that the actual recession process will last more than people think. However, bills and other expenses are still right there and growing, sooner or later many of us will face the necessity of quick cash and then a no credit check payday loan will be an alternative that need to be analyzed.

While it is easy for media to give a negative impression about payday loan companies, when consumer needs money urgently they need it now, and then no credit check direct lenders appear as a good alternative, does it matter any higher cost involved when you do not have another option? Of course borrowers should go for the cheaper option but these kind of short term loans are not cheaper by definition.

People searching for a no credit check pay loan are those having bad credit records and then, a high risk customer profile for cash advance payday loan lenders, and as a consequence of this situation plus, that these are a very short term investment, interest rates are higher than other loan options.

However, consumers should consider that usually credit history is not checked when you apply for a payday loan and because of that there is no reason to apply with the first option available you find, by applying online you save not only time, you can compare simultaneously different lenders trying to get the best deal.

No credit check condition is as important as the interest rate you get, cash advance payday loan lenders face a fierce competition nowadays and, you have the option to apply online for up to 1500 without credit checking with nothing but a healthy checking account during the last 30 days.

Once again, bad credit records do not matter when applying for a payday loan, your employment status is far more important than that. It is advisable to focus on getting a payday loan with a direct cash advance lender in order to save on commissions instead of focusing on getting a loan with no credit checking because of the reasons mentioned above.

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