No Credit Check Payday Loan Lenders

Payday loan lenders need a lot of information to make a loan. As a general rule, borrowers have to provide their name, address, and Social Security Number from which their credit history will be pulled. If you don’t want to have another pull on your credit report, you can opt to do business only with no credit check payday loan lenders, which may be able to provide the money you need without getting into your personal data.

Privacy at a Cost
In general, any time you withhold information from a lender it will cost you. It’s understood among payday loan lenders that any time a customer requests a loan without a credit check that their credit is likely less than par. As such, payday loan lenders may build in extra costs to supplement your additional risks.

However, for others, a credit check may be entirely unnecessary. Of the most importance to any payday loan lender isn’t that your history supports your ability to repay. No, a lender wants to know if your future earnings power will be enough to cover your payments on a short-term payday loan. As such, some borrowers will find that with a high income to expense ratio they’ll be able to borrow inexpensively from a payday lender. A lender may request a copy of a recent check, and will place more emphasis on your paystub than on your credit report, or lack thereof.

No Credit Check
There is a very obvious reason not to consent to a credit check: you want to hide it. But there may be many other reasons why people make a decision not to allow a business to check their credit before extending a loan. For one, you won’t have to give up your SSN, which should provide you with better security around your personal information.

Also, you’ll avoid another “hard pull” on your credit report. A hard pull is one in which a lender pulls your credit score to see what it is. When they do, a “mark” is left on your credit report showing the name of the lender and the pull. This pull will cost you points on your credit score, as looking for credit is one of the signs of being unable to make payments on current debts. This is just the way the credit scoring system works, and the only way around it is to look for loans that won’t pull your credit report.

Pulling a credit score doesn’t leave a permanent mark, but it still might be a mark you want to see for any period of time. In fact, with so many employers now pulling your credit score, it may just be the payday loan lender’s credit pull from a few weeks ago that ends your chances at a better job. It may also come up at insurance companies, mortgage lenders, or other businesses in the future where having a clean report is just as good as making payments on time.

Making Sense of Payday Loans
Like any product, you should be sure to shop around before picking a payday loan service. Finance costs vary from lender to lender, and some lenders have products that are better suited for your budget than others.

No matter where you choose to go for a payday loan, always consider the costs. In the long haul, payday loans are the most expensive vehicles for financing, and it would be recommended that the loan be paid in full as soon as possible. Payday loans are for emergencies, and should not become a pre-paycheck ritual. Budget only after you have paid back your loan in full, and never borrow more than you can afford to pay back immediately. While payday loans do provide people with much needed capital, they can quickly become a source of unnecessary financial burden.

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