Get Short-term Loans with Bad or No Credit

People who have a bad credit rating or who have yet to establish any credit at all know that getting short-term loans can be a tricky and sometimes painstaking ordeal. Thankfully, short-term loans are a great solution and they may actually help to build credit scores or establish credit.

Loans with Bad or No Credit

Short-term loans are provided to consumers regardless of their credit scores because there are a number of precautions that lenders take to lower their risks. For instance, most lenders require consumers to sign agreements that the funds loaned and any interest that accrues will be automatically deducted from their checking accounts on a specified date. Lenders will also look at things like the borrower’s income, how long they have been employed, and previous transactions with short-term lenders when they make their decisions.

TeleTrack and DP

The majority of lenders will not perform credit checks through the major bureaus like Experian, Equifax and TransUnion, but they may ask for a history through a bureau like TeleTrack or DP. These inquiries will not leave any marks on the borrower’s overall credit score and are merely done to ensure that the applicant is not currently in bankruptcy and does not have any current, outstanding or unpaid loans from other lenders. If the lender chooses to run a check through one of these bureaus, this information will be disclosed in the terms and conditions associated with the particular short-term loans.

Build or Establish Credit

Even though most lenders will not perform credit checks with the three main credit bureaus, there is a very good possibility that they will report a borrower’s payment history to them. This means that individuals with no credit stand a very good chance of building a positive credit record, and those individuals with bad credit will have an opportunity to improve their ratings. This is only true if all loans are repaid according to the original terms; loans that are extended or rolled over may impact the credit score negatively.

Regardless of a consumer’s credit, as long as they are not in bankruptcy or currently delinquent with another lender, they can almost certainly qualify for a short-term loans. When used wisely, these loans can make a significant positive impact on the borrower’s credit score.