Online Loans No Hard Credit Check, Instant Decision on Loan Approval

If your current financial situation has you living paycheck to paycheck, month to month, a sudden expense could leave you broke and unable to cover daily living expenses. At worst, it could ruin your credit and undo years of hard work spent building a decent score. Therefore, your best bet to overcome sudden financial expenses is to apply for an instant decision on approval payday loan online.

Instant approval payday loans are designed to help borrowers in a bind by providing them with quick access to cash. The entire process is completed online, so you can apply for and receive your loan within hours, as opposed to waiting days or even weeks for a traditional bank loan to be reviewed and approved.

What Happens If You Change Your Loan Amount?

Instant approval payday loans may be called “instant loans” but there are a few things that can affect whether or not you qualify. For example, changing the loan amount can put your pre-approval at risk.

Instant approval payday loans are generally approved based on your income and ability to pay back the amount in a timely manner. If you increase the amount suddenly and substantially, it could make you less likely to qualify for the loan.

During the application process, it's best to be as transparent as possible. Although you may not pass for pre-qualification, if you meet lender's requirements, you may qualify for a larger sum of money after submitting your information.

What is Alternate Credit?

Alternate credit is a form of credit built separately from traditional institutional lenders. Whereas banks and credit unions often require their loan applicants to have long credit histories and stellar scores, alternate credit bureaus are meant to provide easy access to funding without the strict requirements.

This way, anyone who needs financing can access it. The idea is to increase financial inclusion and help people build credit without dinging their scores with hard credit checks.

What Do You Mean by “No Hard Credit Check”?

When a credit lender assesses your history, they access your official credit report through a process called a hard credit check. Unfortunately, though, this signals to institutional credit bureaus that you're accessing more credit and it temporarily causes your score to drop.

We understand that many of LendUP.com customers use our loan-matching services because they lack substantial credit and are afraid that a hard credit check will ding their scores. That's why select direct payday lenders who hardly ever do hard checks. Instead, our lenders use a soft credit pull to gauge your creditworthiness and then qualify you for a loan based on your income.

Essentially, a soft credit pull is standard practice for verifying your identity but it will not show up on your credit report. This way, you can access a loan without harming your creditworthiness any further.

What is it Called a “Hard” Credit Inquiry?

The two terms “hard” and “soft” inquiry refer to the amount of impact they have on your credit score. Basically, a hard inquiry will be harder on your score than a soft inquiry. Whereas a soft credit pull simply verifies information and identity, a hard inquiry directly impacts your score and gives lenders access to your credit history.

What Does a Credit Report Show?

A credit report is a detailed account of your credit history. It includes information on every account you've ever had, both good and bad. Lenders use this information to assess your creditworthiness and decide whether or not to extend you a loan.

Your credit report includes information such as:

  • Your name, address, and Social Security number
  • Your employment history
  • Your credit accounts (including credit cards, loans, etc.)
  • Any bankruptcies, foreclosures, or late payments
  • Your credit score
The longer your history, the more information a lender has to determine your ability to pay back debt. As long as you have been consistent with past payments, you shouldn't have anything to worry about.

Why Do Lenders Pull Credit Reports?

Before they can qualify you for a loan, traditional lenders must verify that you are who you say you are and that you're capable of repaying the amount you've borrowed. The best way to do that is to check your credit report.

This report gives lenders an idea of your financial history and helps them to decide whether or not you are a good candidate for a loan. A credit report is a good indicator of future behavior. If you have a history of late payments, for example, it's likely that you will continue to make late payments in the future.

On the other hand, if you have a history of on-time payments, it's likely that you will continue to make on-time payments in the future. Essentially, lenders use this information to determine your creditworthiness. If you have a good credit score and a history of on-time payments, you're more likely to be approved for an loan instantly with no hard credit checks.

The problem, though, is that many institutional lenders will not qualify loan applicants if they lack substantial credit history. Even if you have paid your debts on time, if you have not developed a history dating back several years, you're at risk of denial.

Do Predatory Lenders Approve Everyone?

No, predatory lenders do not approve everyone. In fact, they're very careful about who they lend to. The entire point of a predatory lender is to take advantage of people in financial distress. If they approved everyone who applied, they would quickly go out of business.

Predatory lenders are more likely to approve people who are:

  • Desperate for money
  • Unaware of their alternatives
  • Unable to get approved for a loan from a traditional lender
In other words, they're more likely to approve people who they know they can take advantage of. If you're aware of your alternatives and not desperate for money, you're less likely to be approved.

What is the Difference Between a Payday Loan and a Predatory Loan?

The difference between a payday loan and a predatory loan is the interest rate. Payday loans have high interest rates, but they're not designed to take advantage of people. The high interest rates are simply a way to recoup the costs of lending money to people with bad credit.

Predatory loans, on the other hand, have incredibly high interest rates and various hidden fees that are designed to take advantage of people in financial distress. Whereas payday loans are generally comparable to or less than an applicant's income and set with short-term repayment plans, predatory loans are designed to swamp the applicant in debt that they cannot pay back in a reasonable amount of time.

Getting an Online Loan with Instant Decision on Approval

Instant approval payday loans online with no hard credit checks are designed to provide easy financing when you're suddenly faced with an emergency expense. Our lenders rarely require a hard credit check so your score should go unaffected and you could qualify for up to $255 loan in as little as 5 minutes if this is your first-time request. Returning customers can get a loan up to $5000.