Reply
Member
paepae805
Posts: 12
Registered: ‎09-06-2013
0

Do online payday cash advances use credit

Just wondering if payday loan stores pull credit.
New Contributor
roastbeans
Posts: 56
Registered: ‎05-28-2013
0

Re: Do online payday cash advances use credit


paepae805 wrote:
Just wondering if payday loan stores pull credit.

 Nope.Thats why they advertise "no credit,bad credit OK"..However they will want to see your pay stub and/or bank statement.I don't know your situation,but I'd suggest trying other options because their interest rate is ridiculously high.

Moderator
guiness56
Posts: 22,406
Registered: ‎01-17-2008
0

Re: Do online payday cash advances use credit


roastbeans wrote:

paepae805 wrote:
Just wondering if payday loan stores pull credit.

 Nope.Thats why they advertise "no credit,bad credit OK"..However they will want to see your pay stub and/or bank statement.I don't know your situation,but I'd suggest trying other options because their interest rate is ridiculously high.


+1

 

I would try a secured loan through my bank, exhaust all other options first.

Frequent Contributor
TheConductor
Posts: 492
Registered: ‎07-24-2012
0

Re: Do online payday cash advances use credit


guiness56 wrote:

roastbeans wrote:

paepae805 wrote:
Just wondering if payday loan stores pull credit.

 Nope.Thats why they advertise "no credit,bad credit OK"..However they will want to see your pay stub and/or bank statement.I don't know your situation,but I'd suggest trying other options because their interest rate is ridiculously high.


+1

 

I would try a secured loan through my bank, exhaust all other options first.


The reason they do not pull credit is that their interest rate is so ridiculously high that those who do pay back on time are paying more than enoigh to subsidize the borrowers who do not pay.

 

In addition, they make it very difficult to be a borrower who does not pay.  You generally have to write them a post-dated check or give them an authorization to debit the funds from your bank account.  So unless you zero the balance on that account, they will get their money.

 

It is not uncommon for people who take out payday loans to get stuck in a vicious circle where the payday loan's debit causes an overdraft, which they then need another payday loan to cope with.

 

So please do, by all means, consider them a solution of absolute last resort.

 

This diagram from Pew Research is an excellent summayr of how these loans often play out, and also offers a variety of alternatives that could be explored.

http://www.pewstates.org/research/data-visualizations/how-payday-loans-work-85899452693

Starting: EQ 622 (myFICO 7/7/12), EX 696 (TU FAKO 8/14/12), TU 621 (CK TransRisk 7/24/12)
Current: EQ 670 (myFICO 9/8/14), EX 694 (Prosper 7/17/14) , TU 693 (WalMart 9/2/14) Goal: 700+ x3
My Wallet: Amex BCP $30k, Chase CSP VS $12.2k, Amex Zync NPSL (> 10k), C1 Venture VS $5k, Amex SPG $4.5k, Walmart (Store) $2.5k, Barclaycard Apple V $2k, Chase Freedom V $1100, BoA Cash Rewards V $500, Best Buy Rewards MC $500
My Loans: Prosper $25k/36mo
My Business: Chase Ink VS $5k

myFICO is the consumer division of FICO. Since its introduction 20 years ago, the FICO® Score has become a global standard for measuring credit risk in the banking, mortgage, credit card, auto and retail industries. 90 of the top 100 largest U.S. financial institutions use the FICO Score to make consumer credit decisions.

>> About myFICO
FICO Score - The Score that matters
Click to Verify - This site chose VeriSign SSL for secure e-commerce and confidential communications.
Fair Isaac Corporation is a BBB Accredited Financial Service in San Rafael, CA
FOLLOW US Social Media Facebook Twitter Pinterest Google+
}