When you apply for a traditional loan, you of course have to get your credit checked. This will be one of the main deciding factors to whether you are approved or denied for the loan. Unlike traditional loans, you can indeed get approved for a payday loan even if you have bad credit or no credit. This reason for this is simple. Most payday loan companies do not actually check your credit report as part of the decision making process.

If you decide to fill out the application form for a payday loan, it will request basic information such as your name, address, social security number etc, but that doesn't mean they are using that information to pull your credit report. They are simply requesting that information to verify that you are a real and breathing person. Most payday loan companies are interested in one thing, and that's that you have a source of income. If you can show that you do have a source of income, along with a checking account, then your chance of being approved is pretty good.

Of course there are the exceptions to the rule, so it's going to be important that you review the terms and conditions of the company to be sure that they are not going to pull your credit report. When you notice a company advertising no credit, bad credit is approved for the loan, it usually means they are not going to check your credit. Those that do check your credit, have to also ask your permission, so you should see a notice stating this before you submit the form.

As noted, the goal with payday loans is to issue them based on your income and your job. Therefore by showing that you do have income and a job, it eliminates the need for the company to pull your credit report.