Editor's choice: OppLoans Installment Loans
- Easy online application
- Quick approval
- Long repayment terms
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It’s tough to get a loan when you’re just starting to build your credit history. The system of having to have credit to get credit — unless you take out something like a secured credit card or have a cosigner — can seem impossible.
But now you’re stuck in a spot where you need to borrow cash — and fast. Personal loans generally require good to excellent credit, and maybe you don’t want to open yourself up to the temptation of a credit card. If you’re considering a payday loan, here’s what you need to know about qualifying and credit scores.
The short answer is no, you don’t need a credit score. Payday lenders often do not check your traditional credit score. If you’ve stumbled along the way financially or you haven’t yet built a credit history, you could still qualify for a payday loan.
Just because a lender doesn’t check your credit score, it doesn’t mean you’re guaranteed a loan. You still have to meet the other eligibility requirements. If you come across a provider promising guaranteed approval, be wary — a legitimate lender will not make promises it may not be able to keep.
If you’ve had bills in your name, you could have established credit history and a score that you don’t even know about. Learn how to check your credit score.
You’ll generally see different qualifications based on the lender you’re considering. But there are a few universal standards that you can expect. In general, you must:
Many payday loan providers don’t require a hard credit pull on your credit report. What that means for you is that there’s likely not going to be any information requested from the three main credit bureaus: Equifax, Experian and TransUnion.
Though those three credit bureaus are likely to go unchecked, some lenders will pull from an alternative source — Teletrack.
Some lenders will advertise “No Teletrack,” meaning they won’t even check that report. If you’re looking for one that doesn’t check with Teletrack, you may want to ask yourself why they’d be willing to overlook getting this information — and evaluate whether a payday loan is right for you.
To make sure you’re applying with a legit lender, check that the lender has some sort of criteria for you to meet. If a lender advertises “guaranteed” loans, it’s likely a scam. You’ll still need to meet other requirements, such as minimum age and state of residency, to get any loan even if the lender doesn’t check your credit. You can read our article on no credit check payday loans to learn more about the potential dangers.
If you have bad credit because of missed payment or defaulting on previous loans, you may want to reconsider taking out another loan. Some payday loan alternatives include making extra cash through side gigs and getting help from social services.
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