Payday Loans

Pay day loan companies offer consumer loans without credit bureau checking or reporting. Confidentiality, convenience and timeliness may account for their increasing appeal to middle class. They are turning in increasing numbers to instant cash loan companies to fill short-term gaps which could harm their credit ratings if not addressed quickly and discretely.

At least one pay day loan company recently reported its clientele was made up of 30 percent middle class consumers. These consumers, with excellent credit, might choose a no credit check payday loan if necessary to protect their good credit ratings.

With one late credit card payment, credit card companies may increase the APR up to a whopping 30 percent APR or even higher! When this is reported to the credit bureaus, the credit score declines almost at once. Then, when the information is shared among all the other credit bureaus and thence to all your other credit card companies, they too raise the APR and minimum payments to rates almost as high! Avoiding that one missed payment with a payday loan begins to look cheap.

Well-informed middle class consumers with sparkling credit understand their critical need to avoid that nightmare by never making even one late credit card payment.

Consider this middle class couple that might just live on your street. They’ve always worked hard and kept up. They never even had to think about an instant cash loan for anything. Now, they just signed off on a new mortgage refinance loan with their favorite mortgage lender.

Their credit score is a platinum 727, thank heavens for that! You see, the twins both need braces, and Angie enters Purdue next fall. With interest rates still low, it’s time to cash in some hard-won home equity and pay off those credit cards. Angie’s tuition for the fall could be covered, too. Oh, and don’t forget the braces.

Their mortgage loan officer advised them not to take any credit advances or activate any new accounts. He cautioned them emphatically not do anything that could cause an additional credit check for the next 60 days.

That might lower their credit rating, and then they might not get the loan or the interest rate they need. That, in turn, might mean less cash back to the tune of tens or even hundreds of thousands dollars.

Our couple’s next Visa payment is due 4/15, but neither of them gets paid until the 18th. Their payment is less than $300, and they only need it for a week. If they miss the payment date, ALL their credit card interest rates could easily skyrocket. They pass a cash fast loan place on the way home.

If they have ten credit card accounts and make just one late payment for their very first time ever, they may suddenly see all ten accounts go to default level interest and minimum payment levels. Fear strikes as they leave the bank. For the first time, they consider a short term payday loan.

A confidential fast cash loan could make that payment tomorrow. Paying $25 to $100 dollars is better than losing $10K to $100k! Credit check pay day loans are not reported to credit bureaus. Sometimes privacy and timeliness are worth more. Although not banks, companies which make these instant cash loans are regulated.