No Direct Deposit Payday Loans

No direct deposit payday loans from lenders are the perfect choice for those who do not currently have a bank account, or do not have direct deposit enabled. Direct deposit, despite gaining in popularity in the employment scene, has yet to catch on for many, non-employment applications.

Taking out a no direct deposit payday loan is just like any other. You apply, wait for an approval, and then go on your way. The major difference is that a no direct deposit payday loan may send you a money order, check, or may wire the cash to your bank, which can be reason for additional charges.

A fringe benefit of a no direct deposit payday loan is that it usually won’t require a fax for information, either. Instead, you can apply for the credit line over the phone, online, or face to face at a retail lender for easy approval. These loans also tend to have fewer formalities, less personal information changing hands, and can be better for the purposes of safeguarding your information against identity theft.

Income Requirements
When shopping for a payday loan, you’ll notice that many lenders have employment or income requirements. In general, you must have held a job for at least 3 months at the same employer, and must make at least an amount equal to the federal poverty line. Some simplify this further by noting an actual earnings amount, usually $500-1000 per month. Keep in mind that the amount you make will greatly affect how much of a loan will be extended to you. Those who earn, for example, $3,000 per month will be able to borrow far more than someone who earns $500 per month.

The minimum earnings are reported as either “net” or “gross” income. Net income is the amount that you earn after all taxes are taken out of your income. Gross income, on the other hand, is the amount of pre-tax income you have. An employee in a state with a 3% income tax would earn roughly $900 net from $1000 of gross pay after FICA taxes (Social Security, Medicare, etc.) are removed from the check.

State by State Lending Standards
Also consider your particular state laws while you search for a payday loan online. State governments reserve the right to regulate the payday loan industry and many have chosen to do so. California, for example, sets a maximum annual interest rate on its loans, which often leaves lenders to make smaller loans to California residents than they might make to Nevada residents, a state where lending is hardly regulated at all.

Pay the Loan Off Quickly
Payday lenders advertise as emergency sources of funding because that is exactly what they are. They are not meant to be routine lenders, and the industry operates under the premise that you will not make frequent use of a payday loan.

In considering the fees, charges, and annual interest expenses, a payday loan is the most expensive method for short-term borrowing. To borrow $100 from a payday loan lender for the course of one year might cost you as much as $560 dollar in interest, for a total repayment of $660. That interest rate, when compounded for a full year, is equal to 460%. Credit cards, by contrast, cost only 10-20% per year, or $10-20 on top of the $100 borrowed for $110-120 in total repayment costs.

If you find yourself in a bind and making frequent use of a payday loan, it might be wise to seek out help from a debt relief agency that specializes in payday lending. Unfortunately, hard times do happen to everyone, and payday lenders can be a source of trouble if a borrower cannot pay off the loan immediately.

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