DO PAYDAY LOANS SHOW ON YOUR CREDIT REPORT?
Typically payday loans do not reflect on your traditional credit report with companies like Equifax, Experian, or Transunion. However, most direct lenders use industry-specific third-party verification companies like CL Verify, Clarity, DataX, or FactorTurst to review your previous lending history and your probability to qualify for a payday loan.
DO PAYDAY LOANS BUILD YOUR CREDIT?
Payday loan payments do not enhance your credit score. However, if you were to miss payments, late pay or default, a debt collection entity may report this information to the major credit reporting agencies which in turn may leave a negative mark on your creditworthiness.
DO I NEED A CREDIT SCORE TO GET A PAYDAY LOAN?
No, you don’t need a credit score in order to secure a payday loan. Payday lenders prefer not to check your traditional credit score. Irrespectively of whether you have a bad score or you haven’t yet built a credit history, you could still qualify for a payday loan because in case of short-termed loans like payday loans our lenders will only focus on your current financial ability to return the loan amount in the specified interval.
Remember that if a lender says that no credit score check is required, it doesn’t mean you’re guaranteed a loan. Borrowers still need to meet some eligibility requirements. Unfortunately, there are few gray areas around credit checks. Be wary of provider promising guaranteed approval, because a legitimate lender will not make promises that cannot be kept.