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absolute privacy of the personal information 2. No credit check required. Payday loans refer to short term loans that are advanced based on a post dated personal check from the borrower which is held by the lender or on access to the borrower’s bank electronically by the lending party. The borrowers write and sign a personal check for the amount borrowed, together with other related costs and receive money. In some instances, the borrower is asked to sign over the electronic access of their bank accounts so as to receive and repay the instant cash loans. There is no tax consequence for a 401(k) loan that is repaid.
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