Many people with bad credit history look for an online lender who does not perform a credit check. They can’t count on traditional banks or credit unions, because a poor credit usually prevents them from getting approved for a loan. An online lender is just a regular lender who does not want to take unnecessary risks. The Internet is not a wall that people can hide behind, hoping that nobody will verify their ability to repay money they borrow. Lenders lend money to complete strangers, so they have to make a sound decision who they lend money to. A credit check gives them some picture of the applicant’s past credit performance. This does not necessarily mean that their future performance will be the same, but there is a pretty good chance that will not change that patter this time around.
Many websites or lenders can claim that their services don’t involve a credit check, but in reality there is always some form of credit check to verify the customer. As you are a reader of this article, you should be aware of many scam claims that aim to attract people. Please, don’t fall for them! Your credit will be checked with almost 100% certainty.
There are cases when a lender may not pull your credit report, for instance, if you can offer some kind of security or collateral. If you want to borrow a $1000 and offer your house as a collateral, the lender will surely go for it, because he/she cannot lose on that deal. Every time you want to secure your loan against something really valuable, you will easily find someone to dish out some cash. Is it a good idea? Probably not!
Payday loan lenders
Payday lenders also check their customers’ credit history. Payday loans are usually applied for by people whose credit is less-than-perfect or those who need money very quickly and don’t care much about the cost of the loan. There are many reasons why a person may want a payday loan. Since payday loans are much expensive than traditional loans, people with bad credit stand a better chance of getting the money they need. Payday lenders may decline your application if you’re in bankruptcy, blacklisted or show a lot of defaults. They will most certainly check your record but may approve your application despite your score.
You have to reconcile yourself with the fact that a credit check is a part of lenders’ business. It is a necessary tool at lenders’ disposal; as a matter of fact it is the only tool that allows lenders to check their customers. Don’t be afraid to apply for a loan and don’t be afraid to be straightforward with the lender! Find out why your application is approved or declined, and what you should do in the future!