Thanks to the recent downturn in the economy, a high percentage of credit scores have taken a pounding. With the unemployment rate above double digits many have found themselves unemployed or behind on bill payments for the first time in a long time and unable to pay their bills. When bills such as medical expenses, student loans, mortgage payments, credit card payments, or car loan to name a few, become due, and a consumer has been branded with having bad credit, a bad credit payday loan might sometimes be the only option. Typically someone with a FICO credit score below 580 is deemed to have bad credit. If someone finds themselves with bad credit traditional lending sources, bank or credit union loan, will be unavailable to them. A payday loan can be used to ensure bills are paid on time. If bills such as a mortgage payment are not paid on time the consumer's credit could be adversely affected or worse in the case of the mortgage payment, could lead to bankruptcy.
In spite of bad credit, payday loans or cash advance loans are fairly easy loans to obtain online. Having poor credit can carry a negative social stigma. Thanks to the Internet online payday loan companies allow borrowers to apply online in relative anonymity. The transaction can be handled completely online with no face-to-face interaction. Payday loan amounts generally range from $100-$500 and have a brief repayment period. These loans are usually same day loans as they are deposited directly into the borrowers account. Typically applicants must meet three requirements to obtain approval: at least 18 years of age, currently employed, and a checking or savings account.
There are many things to consider when selecting a fast payday loan. The principal aspect to consider is the ability to repay the unsecured personal loan. These loans typically carry a high interest rate and on-time repayment should be deemed critical. Should you miss the on-time payment, the loan amount is typically rolled and penalties applied. The penalty or percentage rate applied depends upon the agreement you made with the lender. Financial responsibility must play a key role after the poor credit payday loan has been approved. The loan funds should only be used for things deemed vital. A mortgage payment is critical, a new 60 inch plasma TV is not. So make sure to plan your financial road map accordingly.
When applying for a payday loan the terms of the loan are clear and must be approved by the borrower. There is strong opposition to payday loans and the companies that provide them. Many consider cash advance loans, or instant loans, risky. You should be aware that the United States Federal Trade Commission has spoken out against the use of payday loans. Despite the high interest rate and brief repayment period, countless happy payday loan customers have used their loan to get them out of a financial emergency.
In the end financial accountability is the responsibility of the consumer. Always read all contracts and terms before agreeing to, or signing, anything.
