Does CashUSA Run Your Credit? The Ins and Outs of CashUSA’s Credit Check Process

Applying for a loan can be stressful, especially if you have less-than-perfect credit. A big concern for many borrowers is how the loan application will impact their credit score. Will it cause their score to plummet even further?

One popular online lender, CashUSA, markets itself as a source of quick cash, even for borrowers with bad credit But how closely does CashUSA really look at your credit when you apply? Does CashUSA run a hard credit check that dings your score? Or do they take a softer approach?

In this article, we’ll explain how the CashUSA credit check works, including key details on what kind of credit check they run and when. Read on to learn whether applying for a CashUSA loan is likely to hurt or help your credit.

An Overview of CashUSA

Before we dive into the credit check specifics, let’s look at what CashUSA offers. CashUSA is an online lending marketplace that connects borrowers to lenders offering personal loans and lines of credit.

CashUSA itself does not issue loans. Instead, they work with a network of third-party lenders to match applicants with loan offers. Lenders in the CashUSA network provide loans ranging from $500 to $10,000. According to CashUSA’s website, loan funds may be deposited as soon as the next business day after approval.

In addition to the loans arranged through CashUSA, the website also directs applicants to loan offers from partner lender NetCredit if the applicant does not qualify for a CashUSA loan.

CashUSA’s Stance on Credit Checks

CashUSA markets itself as a source of funds even for those with bad credit or past issues like defaults and bankruptcies. “We look beyond your traditional credit score,” CashUSA declares on their website.

This seems to imply that CashUSA does not let your credit score get in the way of an approval. But the reality is a bit more nuanced.

Here are some key facts on how CashUSA handles credit checks:

• CashUSA does run a credit check, but not your typical FICO score check. CashUSA does request your credit data to evaluate your application, but they claim to use “alternative credit reports and other sources of data” rather than relying solely on your FICO score.

• The initial prequalification check is a “soft” credit inquiry. When you fill out the online prequalification form, CashUSA runs a soft credit check that does not affect your credit score.

• If you proceed with a full application, CashUSA runs a “hard” credit check. At this point in the process, the CashUSA lender runs a hard credit inquiry to finalize the loan decision. Hard inquiries can lower your credit score by a few points.

So while CashUSA does look at your credit, their process aims to minimize the impact on your score compared to lenders who only evaluate traditional credit reports and FICO scores.

Step-By-Step: How CashUSA Checks Your Credit

Now let’s walk through CashUSA’s application process step-by-step to understand exactly when and how they verify your credit.

1. Prequalification

Your first step is to complete CashUSA’s quick prequalification form. This asks for basic personal information like your name, birthdate, zip code, income source, and desired loan amount.

At this stage, CashUSA runs a soft credit check to give you an initial decision on whether you may qualify. Soft credit checks do not affect your credit score.

If prequalified, you can continue to the full application. If not, CashUSA may present offers from lending partners.

2. Full Application

Next comes the full online application form. This asks for additional details like your income, housing cost, and bank account information.

Once submitted, CashUSA presents your application to their network of lenders. The lenders thoroughly evaluate your application and run a hard credit inquiry to make a final loan decision.

Hard credit checks can lower your credit score slightly, typically by only a few points. The impact on your score depends on your overall credit profile. For instance, those with short credit histories see a greater negative impact from hard inquiries than those with a long and flawless credit history.

3. Matching and Approval

Based on the full application and hard credit check, CashUSA matches you with a lender offer if one is available. If approved, you’ll receive loan terms including the interest rate and payment amount.

If CashUSA cannot match you with a loan offer, they may present alternative offers from lending partners. This allows you to still potentially access funds even if none of the main CashUSA lenders approve your application.

4. Funding

The final step is funding. If approved, CashUSA will deposit your loan funds directly into your bank account as soon as the next business day. Then you can immediately access the cash and put it to use.

When Does CashUSA Check Your Credit? A Recap

To recap the timeline:

• When you enter your info for prequalification, CashUSA does a soft credit check that does not impact your credit score.

• If you submit the full application, the lenders CashUSA matches you with will run a hard credit check to finalize the decision. This may cause a small, temporary drop in your credit score.

• CashUSA only checks your credit after you agree to allow it by starting an application. They will not run either soft or hard credit checks without your consent.

Could Applying for a CashUSA Loan Help Your Credit?

While hard credit inquiries have potential to lower your score in the short term, over the long run, responsibly using a loan from CashUSA may actually build your credit.

As you make on-time payments each month, this positive payment history gets reported to the credit bureaus. On-time payments are the most influential factor in calculating FICO credit scores.

Just one late payment can begin to severely damage your score. But consistent on-time payments demonstrate to lenders that you are a reliable borrower.

So in a sense, making on-time payments on a loan from CashUSA or any lender has the power to counteract negative items in your credit history, if you stick to your payment schedule.

CashUSA Credit Check: The Bottom Line

At the end of the day, CashUSA does take your credit into account, but not in the traditional way most lenders do. Here are the key takeaways on how CashUSA checks your credit:

• CashUSA uses “alternative” credit data, not just your FICO score. This gives borrowers with poor credit an extra chance at approval.

• Applying causes a hard credit inquiry that can mildly impact your score in the short term. The long-term impact of making on-time payments may be positive, however.

• CashUSA only checks your credit once you complete an application. Simply prequalifying or browsing rates is a soft check.

While CashUSA does look at your credit, their process is designed to create more potential for loan approvals, even if your credit is less than stellar. If you need funds but are worried about credit checks, CashUSA could be an option worth exploring.