Does Credit Matter with a Payday Loan?

Occasionally, you might end up running out of money before payday. This could happen when a financial emergency happens, such as your car breaking down, or it could happen at a time of year when your financial obligations are higher than normal, like Christmas. When you run out of cash, you probably want to stop spending, but sometimes that is not possible. Bills are still going to be due, you need gas for the car, and you still have to eat. When this happens, you may need to borrow some quick cash. If your credit is bad, you may wonder whether you have any options. Fortunately, payday loans are there to help, even if you have less-than-perfect credit.

Credit Checks and Payday Loans

In most cases, your credit is not checked when you apply for a payday loan. If you have made several late payments in the past, you should still be able to get a payday loan. You can probably still get a loan even if you have missed payments or have filed for bankruptcy in the past. The main requirements for getting a cash advance is that you have a job, preferably one that makes at least $1000 to $1500 a month, and that you have a bank account. You will also need to be 18 years old.

Payday Loans do not Help Your Credit

If you have had credit trouble in the past, especially if you have had a car repossessed, your home foreclosed, or declared for bankruptcy, you may want to rebuild your credit. Payday loans will not help you rebuild your credit. If you need help with your credit score, you are better off taking out a secured credit card and being diligent about paying all of your bills on time.

How Teletrack can Affect Your Payday Loan

Although payday lenders usually do not report to any of the major credit reporting bureaus, some do use the service of a company called Teletrack. This company typically will make sure that the social security number really belongs to you, but it can also check to make sure that you do not have any other paycheck advances out, and that you haven't taken out other loans fraudulently and purposely did not pay them back. A payday loan company that uses Teletrack will probably not make it more difficult for you to get a loan, unless you have used a rent-to-own place in the past and never paid, or failed to pay when you rented an apartment and were subsequently evicted.