Financial difficulty can leave us all feeling a little overwhelmed and helpless. Unexpected payments always seem to crop up when we can least afford it, usually giving us a sense of dread. It's especially tricky when you have poor credit history and you don't know if you will be able to get a loan to help. It's perfectly natural to panic. Perhaps you remember seeing adverts for 'No credit check payday loans', they are everywhere and can be incredibly tempting in a cash flow emergency.
Looking for the best 'no credit check loans' can become confusing, and you have to be careful not to cause further harm to your credit score in the process. Perhaps your water heater or car has packed in, or your home needs an urgent repair, some things simply can't wait. So you find yourself online searching for a 'no credit check payday loan' or 'payday loans no credit check' and the options seem endless only adding to the confusion.
At Loanza we are here to help, with our expert knowledge. We proudly work with all the best direct lending companies in the USA and we can help maximize your chances of getting the loan you need at the best interest rates available, regardless of your current credit rating.
Let's start with the definition of payday loans according to the dictionary;
'A relatively small amount of money lent at a high rate of interest on the agreement that it will be repaid when the borrower receives their next wages.'
That sums it up nicely! However, these days a payday loan can offer far more flexibility, allowing you to borrow larger sums of money for a longer period of time if needs be. These short term finance options can now be very similar to short term loans meaning that you can spread the repayments for as long as 12 months with some lenders.
Generally speaking, payday loans are suited to people with bad credit history and poor credit scores who may find it harder to obtain short term bank loans or credit cards. The application process is usually very simple, these days online payday loans are the more popular option as you can apply for a loan online in a simple application process and receive the money on the same business day. In some cases, your bank account will be in credit in as little as fifteen minutes! Payday loans, usually involve the lender performing credit checks to confirm your identity and check that you will be able to repay the loan . . .
A credit check is something that a bank, direct lender, or other financial company performs when you apply to get any form of loan or finance with them. It essentially shows them your financial history, credit score, and lending habits. They use it to assess how safe it is to lend money to you. When you apply online, payday loan applications will have a section that you can use to grant a lender permission access to check your credit score and credit history. They can then perform a credit check and pull your credit report from one of the major credit bureaus. The report lets them confirm your identity to analyze your behavior when you have borrowed money in the past. It gives access to information that demonstrates whether or not you are likely to make your payments on time and any current debt you currently have owning. The credit check is used to make decisions online in moments on whether or not to loan money, how much money they are willing to lend you, and the interest rates that will be applicable. Credit checks basically let them know whether it is a safe investment to lend money to you or not.
There are two main reasons why you wouldn't want a lender to carry out a credit check, and they both center around the fact that you already know that you have bad credit -
1) You are looking for no credit check payday loans because you think that lenders won't loan to bad credit. You are worried that the only possible way for you to get the loan you need is to apply for payday loans, no credit checks.
2) You don't want another credit check on your record because you know that repeatedly having credit checks can negatively impact your credit rating.
So that's where payday loans no credit check come in, right? You can get an online loan for bad credit without having to go through a credit check or harming your credit score.
The thing is . . .
A Payday loan, no credit checks is kind of a myth. They don't actually exist.
Let's think about it! If a reputable financial company was offering payday loans without asking to get a look at your credit score, how could they be confident that you could pay and that you would pay the money back along with the interest? They couldn't be! It would be bad for business to provide you with an online loan without knowing anything about you! The credit check involved in payday loans also helps the lender confirm your identity which they have to do or dishonest people could just disappear with their money. That doesn't make good business sense, does it?
If a company is offering you a 'no credit check payday loan', it means that they will not perform a 'hard' check. They will still need to carry out a soft check. So what's the difference?
A hard credit check is known as a hard inquiry or a hard pull. They usually take place when you apply for loans, mortgages, and credit cards. You have to give explicit permission for this to be carried out. You will form part of the standard online application process when you apply for an online payday loan. This is the type of credit check we just described! The lender will gain access to your full credit report from one of the three major credit bureaus. By allowing this you are agreeing for this application to show on your credit history and should be aware that it will cost you a few credit score points. A single application is unlikely to cause you huge problems, however, the use of payday loans may be frowned upon by banks should you apply for larger types of finances like credit cards and mortgages in the future. Regular use of short online payday loans can get you into tricky situations when you do need to loan large amounts in the future. If you apply for multiple loans that are declined you will get into real bother as it will demonstrate that you are disorganized with your finances and high risk to lend to. Generally speaking, hard inquires stay on your credit reports for about two years. It makes sense to avoid this type of credit check.
When you apply for an online payday loan they will still need to get some of your details and perform what's known as a 'soft check'.
Soft Checks are also known as 'soft inquiries' or 'soft pulls'. This type of credit check can be carried out without your permission, in fact, that is often carried out without you even realizing it. A soft check won't affect your credit score. They might show on your credit report but only on the version that you have access to! Soft pulls are safe. The reason they don't show is that they aren't attached to a specific application for credit. They allow you or a potential lender to look around your credit report without impacting your future lending opportunities
When a company promises 'no credit check' chances are they mean Soft Check.
What if I get a payday loan in person? You could locate a lender where you visit the business in person, a quick online for 'payday loans near me' will likely let you know if there are any of these businesses in your area. Usually, you would provide wage slips and a copy of your ID. However, chances are they will still carry out a soft check on you. Let's be honest, that's a hassle when you could find a suitable online payday loan to meet your needs. If they offer a loan with no credit check at all then please make sure they are an officially registered and reputable company.
Avoid companies promising of same day payday loans with no credit check. It already brings into question their credibility. These companies will still carry out a soft check online before offering you a loan, in order to confirm your identity at the bare minimum. Loans advertised this way could come with unnecessarily inflated interest rates attached. It is true that there will be higher interest rates involved with payday loans, especially if you have poor credit but you don't want to be repaying more than you have to!
Here at Loanza, we can help you get a same day payday loan, regardless of your credit history. We proudly work with all of the best direct lending companies in the USA and we can help maximize your chances of getting the loan you need. We work with loan companies who are known to have high approval acceptance rates to borrow with less favorable credit history making sure the loan you get is the best you can in your circumstances!
Many lenders don’t require great credit and some will offer loans to you even if you have poor credit or without full credit checks. They’ll still have other eligibility criteria you need to meet to be considered – primarily they’ll be interested in your ability to repay the debt.
Apply to Loanza within two minutes. We will perform a soft credit check to connect you to the best loan available to you at the best rates available. Then simply review your loan terms, sign your agreement, and the loan can be deposited the same day. Some lenders will offer 'soft search' loans and others will carry out a full credit approval which will show on your credit history. Please make sure that you read the fine print before submitting your application. Like we mentioned your loan could be accepted with a credit check but if you really want to avoid that showing on your history make sure you read everything carefully before signing.
The wonder of an online loan with Loanza is that the money can be in your bank account on the same business day, in a lot of cases you could get the money within less than an hour!
Nothing, Loanza's service is 100% free to use. We can find you the ideal same day loan completely free of charge. Be wary if you choose to use another broker as many of them do charge an extra fee on top!
Payday loans are designed for emergencies such as;
We recommend against the use of short-term or payday loans to finance luxury items.