ABC's on No Credit Check Loans
No credit check loans are the most
prevalent loan in the marketplace today. The team at Bridge Payday Loan
strives to bring you the highest quality no credit check loans in the
industry. Industry specific terminology will be leveraged throughout this
document. The three major US credit bureaus, Trans-Union, Experian, and
Equifax, provide consumer credit bureau information in data segments. A
‘segment’ is simply a packet of data, typically delimited by certain qualifiers
and returned after a request is made to a credit bureau. Credit bureaus
return many types of data segments. Several common segments that are
typically scrutinized in the normal loan originations environment are discussed
below. The glory of no credit check loans is that no credit bureau data
is exchanged during the evaluation of your payday loan request.
A trade line (or
trade) includes both Trade Line and Out-of-Town Trade segments that are
returned on a consumer credit bureau report. Each credit account with a
particular lending institution, for example a Sears credit card, will be
returned as a unique trade. Trades contain payment information as well as
certain codes and narrative descriptions that describe the payment history for
each account. Trades will not typically be examined as part of the no
credit check loans that we provide.
Public records serve
as another typically leveraged credit bureau data element. Public records, sent
as another type of data segment, refer to elements of public information that
are maintained on each credit file. The term ‘Public record’ in this document
refers to segments that include Legal Items, Collection actions, Bankruptcy,
Foreclosure, Tax Lien, and Garnishment transactions. Again, due to the unique
nature of no credit check loans, public records are rarely, if ever,
scrutinized.
An item is evaluated in
the summarization and underwriting policies when it is considered to be within
the ‘debt burden’. The debt burden for an applicant or pair of applicants
refers to the amount of monthly debt they are required to fulfill. Only
items that have been recently reported to a credit bureau and carry a balance
are typically considered to fall within the ‘debt burden.’ When applying
for no credit check loans lenders typically examine your debt burden, or your
outstanding obligations to other lenders.
A ‘hit’ refers to a
successful response to a consumer credit bureau request. A multiple
hit, or ‘fragmented file’ results when the credit bureau returns multiple
reports for the same applicant or request. No credit check loans will ever
result in a ‘hit’ to your credit bureau report.
In a typical lender
environment, scorecard vendors such as Fair Issac will prepare a scorecard for
a client that leverages predefined summarized characteristics. Many
lenders sample the most commonly leveraged scorecard variables and attempt to
provide these characteristics in their lending software. Irrespective of
what these lenders may perform behind the scenes, no credit check loans are
frequently approved with little to no regard for credit data or scorecard
approval or declination readings.
No credit check loans also
don’t need to worry about providing a facility to de-duplicate information
reported by the credit bureau. Individual credit bureau hits or combined
credit bureau hits (composed of information resulting from one inquiry to a
single credit bureau) can be de-duplicated. The combining and
de-duplicating of hits, to be fair to all customers, should be parameter
driven. The criteria selected for de-duplication applies to any combined hits
received, or to the individual hits on a report, if selected. No credit
check loans bypass this unnecessary step.
Information which is
de-duplicated is not included in the summarization process. When a
duplicate condition exists, the item with the most recent date should be used
for summarization. De-duplication criteria must be specified for trade
lines, public records, and inquiries at the control table level. If an item is a duplicate item, it should be
marked with the associated notation on the combined credit bureau. All
this sounds complicated, and it is. Thank goodness there are no credit
check loans which don’t rely on the antiquated processing requirements of the
legacy credit bureaus.