Checking the credit history of any borrower is the most important step in any lending process. Lenders do this for obvious reasons but most of the borrowers hate undergoing credit checks, which disclose their credit history to strangers. This is especially true for those having a poor credit history or frequent defaults.

There are many reasons for which people like no credit check Payday loan. It could be that they do not have any credit history or they do not want to undergo the humiliation of a credit check. Whatever the reason might be.

But the fact remains that the lender does not have a clear picture of how a particular borrower has fared in the credit market and how good is he at the repayments. Indeed, the risk is greater for the lenders in giving a Payday loan without any credit check.

Quite difficult if you do not have any collateral to offer. A positive credit report is something, which gives comfort to the lenders. In the absence of a collateral and credit check they impose strict conditions for lending. A proof of continuous employment and a minimum salary limit is required to get a Payday Loans no Credit Check | Slick Cash Loan.

The amount lent in this case is also small, usually proportional to the salary of the borrower. Therefore, if a borrower is unemployed and is not able to convince the lenders by his monthly income, the only way that he can get a no credit check Payday loan is by offering a sufficient collateral.

Though the lenders have a collateral, but the last thing they want is to get into the costly and time-consuming process of repossession of the collateral. They give the money presuming that it will be returned with due interest, within the stipulated time frame. Since, they are lending purely on the basis of the collateral and do not have a clear picture of the borrower’s credit history, they charge higher interest rates.

So, the borrowers must be ready to repay in higher monthly installments if he wants such a Payday loan. The amount lent, in case of no credit check secured Payday loan is also significantly less than what otherwise would have been, had the borrower undergone a credit check. The lenders may give any amount up to 70% of the collateral’s value; anything above this value will not find favor with them.

The lenders closely watch the repayment schedule of a no credit check secured Payday loan. Any default is penalized heavily and since the tolerance limit is low because of the higher risks involved; the lenders are prompt in repossessing the collateral. Looking on the positive side, prompt repayment of no credit check secured Payday loan can work wonders for the credit history of the borrower.