When you need a quick infusion of cash, you may be considering a payday loan. But what is the difference between hard and soft credit checks?
Hard Credit Checks
A hard credit check is when a lender does a thorough inquiry into your credit history. This can include pulling your credit report and score, as well as asking about your income, employment history, and debts. Hard inquiries can stay on your credit report for up to two years and can negatively impact your credit score.
Soft Credit Checks
A soft credit check is much less extensive. Lenders may do a basic inquiry into your credit history, or they may not check your credit at all. Soft inquiries generally have no impact on your credit score.
So, which type of inquiry should you be worried about?
If you’re considering a payday loan, you should be aware that most lenders will do a hard credit check. This is because they’re looking to see if you have the ability to repay the loan. If you have bad credit or no credit, you may be turned down for the loan or offered less favorable terms.
However, some lenders offer payday loans without doing a hard credit check. These loans are typically called no-credit-check payday loans. While you may be able to get approved for one of these loans, it’s important to remember that they often come with very high-interest rates and fees. In addition, these loans typically have shorter repayment terms, which means you could end up owing even more money when the loan is due.
Before you apply for a payday loan, be sure to understand the type of credit check that will be done. That way, you can be prepared for what to expect and can make an informed decision about whether a particular loan is right for you.
Can You Get a “No Credit Check” Payday Loan?
When it comes to payday loans, one of the most common questions is whether you can get a “no credit check” loan. The answer is yes and no. Here’s a closer look at why:
Payday loans are typically short-term loans that are designed to be repaid when your next paycheck arrives. Because they’re short-term, they usually don’t require a credit check. However, some lenders may still run a soft credit check to verify your identity and make sure you can repay the loan.
If you need a payday loan but are worried about your credit, there are still options available to you. Many lenders offer “no credit check” loans, which means they won’t run a traditional credit check that affects your credit score when you apply. However, these loans often come with higher interest rates and fees, so be sure to compare offers from multiple lenders before choosing one.
If you have bad credit, you may still be able to qualify for a payday loan if you have a steady income and can demonstrate your ability to repay the loan. Some lenders may require additional documentation, such as bank statements or pay stubs, to verify your income and employment status.
No matter what type of payday loan you’re considering, it’s important to read the terms and conditions carefully before signing any agreement. Pay close attention to the interest rate, repayment schedule, and any fees or charges that may apply. And if you have any questions, be sure to ask the lender before you agree to anything.
With so many options available, there’s no reason to worry about getting a payday loan with bad credit. Just be sure to do your research and compare offers from multiple lenders before choosing one.