When you check out payday loans, you would come across various messages. Some lenders will tell you that they offer guaranteed payday loans. Some will harp on the hour or two they take to approve a particular loan. Some lenders will advertise that they don’t perform any credit check or that they offer payday loans to people with bad credit. In a given scenario, payday loans with not checking your credit and payday loans for bad credit must imply the same thing. It should be two ways of saying that both are available for people who have poor credit because the lender is not checking their credit. The crux of the matter is that the lenders don’t consider the credit score or credit history while approving or rejecting a loan application.
The reality is not that simple. Payday loans that don’t check your credit are different from payday loans for bad credit. Let us illustrate the subtle, at times inconsequential but at times significant difference that has an impact.
Payday loans that don’t check your credit convey a simple message. You don’t need to declare your credit history, if you are aware of it. The lender will not trace your credit history with any of the bureaus and you would be approved or turned down solely based on your loan application, proof of identification and source of income. You may be turned down because you ask for a very high loan amount. Your proof of identification or source of income may not be convincing enough. There can be some grey areas. There are the basic qualifying factors that would lead you to approval or rejection. The credit score will not be party to either of the two consequences.
When a lender says that you would get payday loans for bad credit but doesn’t explicitly say that the lender is not checking your credit, then you are going to be subjected to a credit check. That may lead the lender to your poor credit history. If it is acceptable to the lender, your application may get approved. If the credit history is too poor, then the lender always reserves the right to reject your application without even providing you with a reason. How do you know if you got turned down for your credit history even though the lender claims that you would get the loan despite bad credit?
Opt for payday loans that don’t check your credit to be sure.