Why Payday Loans No Credit Check Schemes Exist?

In a general senses, Payday loans no credit checks chemes exist because it is what most

borrowers would demand. This is because people are tired with loan applications that are too

bureaucratic, tedious and taking a long time to accomplish. In other words, people are finding

some solutions to their financial needs that will cause them less hassle and headache. It is in this

light that there are already some banks that are offering applications that no longer required

credit check.

Leopard Loan is one of the lending companies that offer this kind of scheme. However, how

does this company can offer this in the first place? What are the mechanics and processes

involved for this type of loan?

Of course, there is a risk for offering this form of loan. Credit and background checks are part of

the standard operating procedures in any bank that offers loans. This is what normally takes

place. The purpose of this is for the bank to check whether the borrower has the acceptable

propensity to pay the loan or not. However, if the banks or lenders will no longer conduct this

SOP and provide payday loans no credit check applications, then they are like removing their

safety net.

Credit checks are the safety net of the lender because the end goal of anyone who is lending any

amount of money is for the borrower to pay the amount of loan in a timely manner. For example,

if the borrower suddenly resigned at work, then where would he or she get the payment for the

loan? If this happens, it may end up to a loan default, wherein the loan no longer gets paid. This

could be avoided if only the bank was able to conduct background investigation, which will give

the bank an idea whether the applicant has the tendency to resign at work or not.