No Credit Check Loans
Because payday loans are typically sought for emergency financial needs and by individuals who may have exhausted all other loan options, some lenders advertise payday loans without a credit check. And while this may be appealing to unsuspecting consumers, such advertisements are typically misleading. In fact, websites offering a no credit check payday loan may not be safe and may be predatory in nature. Do all payday loan lenders check applicants’ credit scores, and are there ways to attain quick short-term loans with poor creditworthiness? We answer these inquiries and more below.
Understanding Credit Check Types
Lenders can conduct two types of credit checks: a soft credit check and a hard credit check.
A soft credit check is an overall look at your credit history without scrutinizing the details. This is performed as part of your identity check. Soft credit searches usually don’t affect your credit score and aren’t visible on your credit report. Other companies won’t be able to see these searches on your report.
A hard credit check is when a company does a full search. Hard credit checks are recorded on your credit report, and any company searching for your history can see them. Too many hard credit checks can negatively affect your credit score.