Have you experienced buying an item on installment sales or negotiated a bank loan on installment basis? Normally, these kinds of transactions require the issuance of a series of postdated checks from the borrower as payment for the scheduled amortizations. In addition, a bank statement covering the checking account is also submitted to the lender. While this set up is convenient for both parties, this is viewed as more advantageous to the lender. In case of default, the lender has the documentary evidences to go to court to enforce collection. In other countries, a returned check will subject the borrower to criminal prosecution aside from the civil action he is exposed to. Some payday loan lenders do not require bank statement to approve a payday loan though the issuance of postdated checks remains part of the conditions.
Uses of a bank statement
When the loan agreement contains this provision, it is normal that a bank statement is required by the lender. The bank statement reflects the finances of the borrower. The amount of his deposits and withdrawals by checks are indicated in a bank statement. The bank statement will also disclose how many checks have bounced during the period covered by the bank statement. On the bank statement, the lender can likewise verify if the checking account of the borrower is still active.
However, despite the above uses of the bank statement, there are many lenders who are offering payday loans with no bank statement to entice customers to borrow from them. They rely on other modes of verification which are available to them online. They can secure a credit analysis report from Teletrack and checking account information from Telecheck as they have links with these credit bureaus. By waiving the bank statement, borrowers are made to believe that they are given the leeway to borrow payday loans. But actually, the information that a bank statement can supply was already obtained from other sources.
If you are a borrowing applicant of no bank statement payday loans, do not be relaxed with this offer. Do your homework to find out the best payday loan in town before filing the online application form.
Why search for the best
As you search the internet for payday loan lenders, you will note that your attention will be drawn to their banner ads declaring same day processing or similar to that effect. Others even advertise shorter than that. If you will compare the rates against the costs of conventional loans, you might get sick of figuring out the wide difference. These two features (faster processing and extremely high rates) must be your center of concentration on why you should identify the best lender. Your objective should be the fastest lender that approves payday loan at the lowest rate. This is your shield to cushion the disadvantages of borrowing money by means of payday loans.
In your search for the best lender that would suite your needs; prefer the one who will not require you to issue a postdated check. This will help you avoid getting entangled in a messy collection case that could possibly arise if you issued postdated check that later on bounced. Try negotiating a payday loan that has no guarantee attached aside from your paycheck. But above all, it is best to practice your bargaining skills with low interest loan financiers before attempting to borrow from sky-high interest charging lenders of payday loans.