Turning to payday loan lenders online when you are short on cash, as well as credit challenged, can afford you the opportunity to get fast cash without worrying about your credit score or history. Your FICO score determines if you will be approved for a mortgage, car loan, credit card, or personal loan. It also determines how much your credit limit will be and what kind of interest rate you will receive.
If you have a problematic credit history or no credit at all, the best payday loan lenders make it easy to get extra cash because they won’t run your credit when you apply. These short-term loans are based on the premise that consumers can get some quick cash without the hassle of going to a bank or credit union to apply, waiting for a the bank to run your credit and approve your application, and then waiting again to get funded.
When your need for cash is time sensitive and you know your FICO score will be an issue, you may be looking for payday loan lenders for bad credit. If so, you can usually count on the fact that those lenders will approve you without considering your credit history. Keep in mind that if you are looking to a payday loan to boost your credit score by paying off your loan on time and in full, it’s not going to happen. Just like they don’t run your credit during the application process, they don’t report to credit bureaus while you’re in the process of paying your loan off.
Do payday loan lenders report to the major credit bureaus?
If you default on your loan and the lender chooses to send your account to a third-party collection agency, then your credit score may be effected. Collection agencies are separate from the creditors. They buy accounts from debtors so it’s their choice to report to the three major credit bureaus: Experian, Equifax, and Tran Union. If your account hasn’t yet gone to an outside collection agency but you are in default with your direct payday loan lender, call them right away to make payment arrangements. Ignoring your account obligations will only do you more harm. Most payday loan lenders will work with you on getting your loan paid off. Lenders usually withdraw your loan payment straight out of your checking account. If the money won’t be there then make sure they know that.
Most lenders will offer you the opportunity to get an extension or “rollover” on your loan. This means having more time to pay. You will incur more fees and interest this way, though. If you take this option versus letting your loan default, you will keep your account from being sent to an outside collector.
If you are experiencing a financial emergency, payday loan lenders are there to help. Simply apply online and get approved and funded in hours. Most lenders will deposit your cash into your bank account overnight. If you work with an in-store lender they will give you a check on the spot.