Bad credit can be of great concern both to the lender due to the risk of not being repaid that's involved, as well as the borrower since it gets difficult to then receive a loan. In general, if you have bad credit, it makes it either very difficult or close to impossible to be granted with a loan if you approach a conventional lender. Also, since they conduct hard credit checks, it is likely that your credit rating may worsen. Direct lenders offering same day payday loans with no credit check give people with a poor credit rating a chance to receive finances, and avoids the credit score from declining.