No Credit? Don’t Worry With No Credit Check Payday Loans

Published on March 28th, 2014

There are two ways that people can have a bad credit report and a low credit score. One is that they have too much debt compared to their income or that they have defaulted or missed multiple payments on debts, credit cards and other bills. This may also include foreclosures or repossessions on their record. The other concern is when a person has limited credit history because they don’t have credit cards, loans or a significant credit history. If you fall into either of these categories you can still get a loan using no credit check payday loans.

Bad Credit Score

A bad credit score is not always a reflection on the individual. People can get behind on payments and have their debt skyrocket because of loss of a job, divorce, medical emergencies or any other number of factors. The problem is that the credit report and score doesn’t indicate why you fell behind or had to use credit cards to get by, it just reflects a number.

Traditional lenders, including credit card companies, look at your credit score to determine if you are a good risk to lend money to. Lenders offering no credit check payday loans don’t use the credit report and score; instead your job is your proof that you can repay the small loan amount.

Thin Credit File

For many young adults or people that have not used credit cards or made a major purchase like a vehicle or a home, it is not that they have a bad credit score; it’s that they don’t have any credit score. This is called a “thin file” which will show a low score simply because they have no record of handling debt and making repayments on a schedule.

Individuals with a thin credit file also benefit from no credit check payday loans. While these loans will not necessarily boost your credit score they can be used to avoid missing a payment or having to use a high interest credit card that could possibly reflect negatively on your overall credit score.

Using no credit check payday loans for bad credit or for a thin credit file will take all the pressure of when you just need a bit of help to get through between checks. It is also a good way to learn about handling debt and making repayments on a very short schedule.

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