Have you ever been in a financial fix and prayed that only if you could borrow a few hundred dollars from someone? Sometimes it’s all about that little boost which you might need to get you on your feet again. Some people might think this situation is pretty simple, just take a loan! But they don’t understand the pain of having a bad credit score. Let’s look at one of the options which you might have.
What is Bad Credit?
Before we take a look at one of the options which you can go for, it is important to understand what bad credit actually is. This is a term that large banks love to throw at people but very people actually know what it is.
A bad credit score means one very simple thing, that banks don’t want to trust you. But don’t worry, they have a reason for feeling this way. A bad credit score means that you have missed out on your bills or payment of previous loans. This makes banks very nervous; they have less faith in you to pay your loans in the future as well. A bad credit score usually means that your score is below 580 on a scale of 300 to 850.
If you don’t know what payday loans are don’t worry, they might be the exact thing you were looking for. I don’t know if the name gives it away, but traditional payday loans meant you taking some of your future salary before you actually got it.
Let me explain, payday loans are perfect small amount, short time loans. One of the better things about payday loans is that you don’t have to worry about your credit scores. One of the reasons why lenders don’t worry about credit scores that much is because of the small amount and short time of borrowing. But they do offset this by increasing the interest rates when compared to long time bank loans.
Some places might even ask you to sign a future cheque which would directly take away some of the money from your future salary as loan repayment. What most places are looking for is proof that you are employed somewhere and have been working there for some time. You might have to deal with higher interest rates just in case your credit scores are really low.
You might not want to go looking for physical stores that offer payday loans or you might not just be able to go somewhere because of the pandemic. Don’t worry! There are a lot of options out there which will help you get a loan online.
Some websites like PLnearme.com makes the job of looking for different loan providers easy. This way you can compare different interest rates being offered and make the right decision. But usually, you will find that average annual interest rates can be anywhere between 45% to 640%.
Another advantage of looking at different lenders online is that you have access to thousands of reviews by different people. It might be possible that some place offers lower interest rate, but their customer experience is really bad. You will have to weigh the pros and cons before making a decision.
Keep one thing in mind though, make sure you are borrowing from a reputable source who has an FCA authorization. Also check the legality of payday loans in your state as its completely illegal in 13 states as of now.