How Does Your Credit Score Affect Your Payday Loan?

The Woes Of A Bad Credit Score

For many borrowers in need of some urgent cash in times of a tight liquidity situation, the biggest obstacle that comes in the way is a bad credit score. Most banks & financial institutions do a basic check on your score through monitoring-services like Experian, FICO, Equifax or TransUnion. And if you are one of those many potential borrowers in the United States, a blip in your scores can mean no credit at all. Forget about waiting in line for those final approval meetings; a bad credit score acts as a gate-keeper between you & your cash needs.

New Borrower? No Credit History? That, Is Not Great News.

A little known fact is that if you think that no credit history implies that your slate is clean; then you are wrong. Many Americans who are new to the job market, young and raring to go, are stopped on the tracks when a little-to-show-for credit history brings down your score and prevents you from getting that cash infusion you very much need.

how does your credit score

Payday Loans To The Rescue

The above two scenarios paint a very bleak picture. But fear not, as instant payday loans come to your rescue. Yes, you heard it right. Credit scores mostly do not affect payday loans. Instant Payday loans are short term unsecured loans which borrowers use to tide themselves over until the next payday. Hence, the name.

Not So Strict Credit Checks

So here is how payday lending is done. Most lenders will provide you a loan for a post-dated check that your write in the name of your lender and the amount is withdrawn from your bank account after your next payday. Given that this is enough assurance, most lenders don’t bother checking other sources for your credit score. And so such payday loans double up as same day loans.

Now in case a scenario arises that you are unable to set aside the money to pay back the loan, when your salary arrives, you ask for an extension. At this stage, most lenders might decide to err on the side of caution and do a casual check on your short term credit score which is different from the ones published by monitoring agencies mentioned before. One such alternative monitoring agency is Teletrack which specifically tracks defaults on short term credits. If you have been fairly meticulous with paying off previous such loans then one need not worry. However such lenders might just be few & far in between.

Here is the gist. Overall instant payday loans are a great solution to those worried about a credit score’s impact on their loan approval and are just what you might need to get you through. So, tap now, into Instant Credit Loan’s extensive network of lenders and submit your information for a payday loan now!

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