One of the most frequently asked questions about online payday loans is if you can get one without a credit check. Let’s be very clear about this: no, you cannot. It’s practically impossible to get through the short-term loan request and application process without someone checking your credit score.
Some reasons customers want to receive funding this way include:
Fortunately, many are still able to find funding even if they are in a bad credit situation. And while a soft or hard pull is never good for you, it might not be as bad as you are imaging. Let’s dig a little deeper to find out why.
A hard inquiry is when a financial company pulls your report, usually to determine your creditworthiness. It can knock your score down by a few points, with the impact lasting for two years.
A hard pull will only happen with your authorization. Unfortunately, that’s most every time you apply for credit – everything from a cash advance to a mortgage to a credit card. The good news is credit bureaus view multiple hard inquiries within a 14-day window as a single instance, so if you are shopping around for a loan during a two-week period, the damage to your score should be limited.
If you want to check your own report just to find out what your score is, you can do it through a soft inquiry, which doesn’t hurt your credit score.
Avoiding unnecessary credit pulls is a good way to protect your credit score, but there are other precautions that are far more important.
When compared to the worst credit mistakes, a hard inquiry seems like a slap on the wrist.
Chances are if you are on a payday loan website that claims not to require a credit check, what they probably mean is that they will only perform a soft pull. There simply is not a lender out there who will not perform some type of credit check before offering you a loan.
Another way a lender can get around a hard pull that would negatively affect your credit is by pulling your score from one of the alternatives to the three major bureaus. Again, this technically not a “no credit check” situation, but it can have a similar outcome if what you’re after is not having your score lowered at TransUnion, Experian, and Equifax.
One of the top reasons people apply for short-term loans is to pay off previous debt. This can be because of a due date that they are unready for, or because they think they can get lower rates with the new loan. Other reasons include emergency expenses, medical bills, major purchases, medical or dental, credit card consolidation, motorcycle purchase, car repair, household expense, RV purchase, moving fees, and home improvement.
As we said earlier, the financial market does not include lenders willing to offer money without first knowing a borrower’s credit history. Instead, there are sometimes options available for those with bad credit.
Part of the reason a lender will run a credit check is that it is a way to validate your identity. They need to know you are who you say you are before offering you a loan. Lenders will often also require:
Meeting these basic requisites will not guarantee you funding.
A small-dollar loan can be used to increase your temporary finances, but the borrower needs to remember that the due date is just around the corner. If another emergency expense comes along, you might not be able to afford it with your paycheck already partially devoted to paying back your payday loan.
If a lender says that you are not required to have credit, that is different from saying there will be no credit check. “No credit required” means that the borrower is not required to have a healthy and robust credit history. But, the lender very well might (and likely will) check each applicant’s credit history.
Some borrowers confuse these two terms and get upset when they find out there had been a hard or soft pull. It’s important to remember that there will always be a hard or soft pull when you are applying for any type of loan.
When looking for a cash advance online, it helps to know how to get to where you want to go. Here is one path you can take:
After you receive an offer, you should read through the loan agreement to make sure you understand all of the requirements on your end. Especially focus on the fees, both the ones you pay if everything goes right, and the charges you will face by way of penalty.
One of the reasons you enter your personal information when making a loan request is so that your information can be verified. It’s an important part of the process. There are ways for lending partners to make sure you are who you say you are without having to run a credit check. One way is by using your Social Security Number.
While some companies can verify your information using your SSN, it is important to remember that someone will check your credit sometime during the loan request process. It is part of the process for most of the companies near the end of the funnel.
Some worry about their credit history not because its bad but because its empty. It can be harder to take out large loans with a mixed borrowing history, but smaller amounts should be attainable if you have a good score.
Figuring out the right loan product can be difficult if you try to do it on your own. Why not speak to a professional instead? Chances are you live within a few miles of someone who can help.
A good place to start is picking up your phone and dialing 411. Ask for the numbers of people in your area who help with financial planning. Government programs are preferable because in some cases they are free.
It’s sad, but there are companies out there who will try to sell you financial products while you are searching for money. One example is when a loan shopper accidentally signs up for a credit report program while trying to fill out an application. These programs can cost upwards of $40 a month. According to a recent Forbes article, families who file for bankruptcy are on average just $26 short on what they need. That credit report program could have been the difference.
It is wise to be as thrifty as possible during the loan request process. Do not sign up for programs that will charge you money to improve your loan prospects. For one thing, they aren’t worth it – there are free resources available.
There is a small chance that if you have worked with a mom and pop storefront in the past, they might lend to you again without checking your credit. Working directly with a brick-and-mortar has other benefits as well. Unlike online lenders who need at least one business day to have the bank process the money transfer, a storefront might be able to get you a quick cash advance, sometimes before you leave the shop.
Even if you haven’t worked with a storefront in the past, you might be able to get customizable service dealing with one directly. The bigger businesses have less wiggle-room when it comes to customer requests. They have a book they have to go by. With a brick-and-mortar location that’s not part of a bigger franchise, you might be able to cut through some of the red tape and get your application through without a credit check. It never hurts to ask.
We have been around for a while. Over 500,000 customers have gone through our loan request process, and we have helped many of them find a lender. We know how important it can be to find fast money. That’s why we built our loan request process to be as quick as possible. If you are ready to request your loan right now, we can help you get started.