When you apply for a loan, an online lender will check your credit rating from three companies called Equifax, Transunion, and Experian. These are the same companies that you would use if you wanted to pull your own report. It's just that you wouldn't have to pay for the service in that case. However, bad credit loans are also available on the market. Unlike traditional bank loans, these short-term loans are designed for people with less-than-perfect credit scores. They also are considered high-interest loans because of the risk taken by payday lenders.