Scroll Top

Do Installment Loans Require a Credit Check?

Credit score concept on the screen of smartphone stock photo

When you have poor or no credit, finding a source for the extra money you need can feel like a real challenge. Thankfully, there are still options for getting a loan.

Personal installment loans are often one of the easiest ways to get a little extra money—even without a credit check.

Does an Installment Loan Involve a Hard Credit Inquiry?

A loan company might choose to perform one of two different levels of credit checks when deciding whether to lend you money:

A soft inquiry means they are just checking your overall credit number. They aren’t looking at detailed information about how your credit number was calculated, and these inquiries do not show up on your credit report.

A hard inquiry means the company has requested to see your full credit history before deciding whether to give you a loan, and these inquiries do show up on your credit report. Having many of these in-depth requests come through in a short time will likely lower your credit score slightly.

Getting a small personal loan is often possible without the company checking your credit history. Loan companies will tell you if they intend to use a credit check or are more concerned with your income levels and other factors to help them determine whether or not you will have the money to make loan payments. These types of questions don’t require a hard credit check.

Can You Be Denied an Installment Loan?

There are instances where installment loans are denied. It helps to understand what loan companies are looking for and what will be expected of you when you request a loan. Each lender has its own rules about determining if the loan applied for is likely to be repaid on time and in full. This is why they check your credit score.

Some of the factors that might make it hard to find a loan might include:

  • Little or no credit history
  • Low credit score or bad credit
  • Loans that haven’t been paid back
  • Late or missing payments in your credit history
  • Filing for bankruptcy
  • Having a large number of loans
  • Loans for larger amounts of money
  • No proof of steady income

Do Installment Loans Hurt Your Credit?

Applying for or using an installment loan doesn’t necessarily hurt your credit. Some companies even specialize in helping you repair your credit when you borrow money from them. They may offer Buy Now, Pay Later (BNPL) loans or flex loans that work with you on the payment schedule you need.

These loans can only hurt your credit if you miss payments or apply to several different companies at once. It will hurt your credit score if you don’t repay the money you borrow or borrow more than you can reasonably afford to pay back.

Borrowing money is a part of life; just remember to borrow what you can repay later.

No Credit Check Installment Loans from Power Finance Texas

Power Finance Texas is the answer to no credit check installment loans in Texas. Our online application is quick and easy.