RadCred Enhances Online Loan Marketplace for Borrowers With Bad Credit

RadCred added an expanded soft-pull pre-qualification flow to its online loan marketplace.

The offering is meant to meet the needs of borrowers who have poor credit scores, the company said in a Friday (July 25) press release.

The solution uses a soft credit check; shows only state- or tribal-licensed direct lenders that can legally lend to the borrower; and provides information about APR, fees, total repayment, term and funding speed on every offer card, according to the release.

It also provides matches based on income and bank deposits, offers same-day funding when possible, and explains to the borrower that a hard pull may happen if they accept an offer, per the release.

The solution aims to benefit borrowers by preventing a hit to their credit score when they’re just looking at offers, providing clear costs up front, sharing honest timelines for the funding, matching them with licensed lenders, and offering “straight talk on what ‘no credit check’ and ‘guaranteed approval’ really mean,” the release said.

It’s also designed to provide a compliant alternative to advertisements that make promises they can’t keep, according to the release.

“Google Trends indicates sustained growth in intent phrases including ‘no credit check loans,’ ‘online loans no credit check,’ ‘payday loan online no credit check,’ ‘1 hour payday loans no credit check’ and ‘online payday loans for bad credit,’ all signals that borrowers with poor or sub-580 credit scores are seeking faster, softer-impact paths to funding,” the release said. “RadCred’s marketplace reframes those risky search terms into licensed, transparent, soft-pull comparisons that reduce confusion and help consumers avoid unlicensed or predatory operators.”

RadCred launched its platform in June, saying it aims to meet a rising demand for online payday loans by offering same-day funding and soft credit checks for borrowers who have been historically overlooked by traditional lenders.

The company said in a June press release that it aims to “simplify access to small-dollar financing” for consumers who need $400 or $500 for an emergency expense.

The PYMNTS Intelligence report “Managing Unplanned Expenses: How the Pay Later Economy Fits Consumer Needs” found that 35% of consumers reported making an emergency purchase of at least $250 in the last year and 36% made an impulse purchase of that size in the past three months.