Payday loan lenders provide a small money window of opportunity to those who have a buildup of bills than cannot wait until the next paycheck. It is available to those with bad credit or no credit giving them a fast out of what could be a sticky financial situation. The last thing a credit score needs is a bunch of bad reports which came out of a slew of unexpected payments in a short period of time.
One of the top characteristics of an online lender is the speed of delivery. Most often, within 24 hours of applying for a loan a payday loan lender will get money relief to your bank account. The demand for money when there is little to go around can become an even pricier obstacle than the cost of the payday loan. When this scenario presents itself to your finances, low cost payday loans are a definite positive option.
Applying for a loan with a direct lender will:
*Allow you to pay bills on time to keep late fees away.
*Protect your account from over draft fees.
*Relieve financial stress immediately.
*Make loan application simple.
*Protect your credit score from keeping the loan unreported.
*They will not use your credit history to deny your application.
When all is good and everything falls into its place, these direct payday loan lenders will rescue your finances from tumbling further down. But when things are bad, and a the loan is not paid back, the defaulted loan will wreak more havoc into your budget.
For starters, once the initial payoff date goes by and the loan remains unpaid, there is a pretty hefty interest rate which gets attached to the loan amount. It will keep increasing your balance each pay period. Some people struggle just to make the fee payments never mind the whole loan amount as well. Paying down as much as possible each paycheck is the only way you can get some relief. This means you must pay the fees plus extra to go on your principle balance. When you do not pay anything, you will see your balance grow quickly.
Those who default against lenders will have their account sent to collections. Many lenders will have their own collections department, but when this department fails to collect on your loan, it will be sold to a third party. Then here you have it, a payday loan lender helped you protect your finances and now the same company will be hurting your credit by protecting its business. Collections department is a bad place to be for any debt and it certainly is not a positive for your credit score.
As much help as a payday loan lender can provide when you are in a financial crunch, it can be just as bad as any other creditor if you do not repay the loan. Use a trustworthy direct payday loan lender which offers an easy application for a small short-term loan when your paycheck is still a few days away.
