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Do you need a credit cheque for a payday loan?
#1
How does it work?
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#2
(01-09-2018, 03:34 AM)Sara Khan Wrote: How does it work?

I suppose you mean "credit check"?

If so, no, you don't. Payday lenders don't require a good credit score in order for you to be eligible to take the loan. They will need to know you are employed and probably what your income is.
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#3
Wait... What cheque?? I think chikatilo is right, what you mean is check. Right?

No for that. Some lenders can go on without that if you are after a pay day loan, some will only need you to fill out a form and provide your proof of income and other common requirements.
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#4
Payday lenders don't use traditional credit checks with the three main credit bureaus. They also don't report bad loans to the traditional credit bureaus either. They just want proof of income and post date check (or access to your bank account).

Online payday loans work like this:
1. Apply online
2. They verify you have income and a bank account
3. You sign documents which include an ACH authorization to put money into your bank account and take money out of your bank account on your next pay date.
4. The lender puts the money in your bank account.
5. On your next pay date, the lender withdraws the money from your bank account.

Storefront payday lenders work like this:
1. You go to the store and apply for a loan
2. If approved, you provide a post-dated check that the lender will deposit on your next paycheck
3. You walk out of the store with your cash or check
4. On your next pay date, the lender deposits your check at the bank
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#5
There is no need for one to have a credit cheque to able to have a payday loan. One thing that you've got to need is, in most cases, your social security identification number that can guarantee you're ready to pay back those loans when things turn sour. This is the reason those lenders find it difficult and uncomfortable when the loans ain't paid back as soon as it should be. For me, I wouldn't consider going with a payday loan anyways.
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#6
In my country a credit cheque payday loan, because the authorities of for some reasons stated it is a must, it might sound weird but if you don't have a credit cheque payday loan you will never get their attention.
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#7
A credit check wouldn't be necessary to get a payday loan. I think that what would be checked is that you were working and were due to receive a paycheck. What they want to know is how much you earn and your address. A credit check would probably be a good idea for them to see if the borrower does pay back what they borrow.
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#8
I don't think they do credit checks for payday loans but they usually want to know how you are going to pay the money back, which is not unreasonable. Use them at your own risk though.
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#9
You don't need credit checks for you to be able to have payday loans. It's not like other loans that investigate your credit history. The lenders just want to know if you're capable enough to pay them at the given period.
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#10
Most payday loan lenders typically use your level of income to determine the amount of loan they can give you, not your credit history. Which is kind of weird because if they checked your credit history it would be... generally the same thing? Because you have to make credit payments, so. I mean, I dunno how reliable that would be to check versus general income, but, eh.
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