Bad Credit Personal Loans
If you have bad credit or no credit, you are still eligible to apply for a Payday Loan, also known as a Cash Advance Loan.
What is bad credit? Bad credit arises when you fail to pay a monthly debt on time or not pay it at all. The debt can be from credit cards or loans. Once you default on a payment, it is reported to the three credit agencies. Eventually, your FICO score is begins to decline and you are considered a "poor risk." If this happens, the ability to obtain a new credit card or loan becomes more difficult.
Credit agencies look at your income versus the total amount of money you owe and calculate your credit score based your ability to pay bills on time, late payments, or any debts that are in default. Thus, if the debt you carry is higher than the income - your credit score is lowered and you may be considered at-risk.
Since the economic downturn, many credit card companies are incorporating stricter standards as it relates to one's FICO score. While a credit score below 600 was considered good enough to obtain a car loan, student loan, or credit card - the banks have upped the ante and raised the minimum FICO score to 800 and above. In addition, throughout this economic crisis, banks stopped lending. Individuals could not obtain loans or credit unless their FICO score was with the range cited.
Moreover, to offset their losses, banks began to raise the interest rates on credit cards. In some cases, they lowered the credit line - not just for those who were deemed as having "bad credit", but for those who had an excellent credit rating as well.
Personal Loans for Individuals with Bad Credit
There are occasions when you may be in need of quick cash. Payday loans may be the answer to your current situation. A payday personal loan can be used to pay the bills. The difference between paying late fees on credit cards or a bounced check and paying off the debt with a payday loan can make all the difference.
This will not only help in the short term, but will prevent credit agencies from labeling you as a "bad credit risk." The bad credit status on your credit report can be prevented and your credit score will not be affected.
Utilizing a payday personal loan, with the proviso that you pay it off within a short amount of time, can be of great value in an emergency. We recommend the services provided by an Internet Cash Advance if you are ever in a similar situation.