Nobody wants to have bad credit, but with the economy being the way it is, with all the layoffs, the value of your house dropping into the cellar so that you are underwater and owe way more than it’s worth when you try to sell it, having to take a pay cut in order to keep your job, and many other reasons more and more people are finding themselves getting in trouble and their credit score takes a hit. It’s happened to me it can happen to anyone including you.
Due to the fact that you have bad credit, you may think that you can’t get a loan so you don’t even try to get one. The fact is there are options available to you for a bad credit payday loan and you should apply if you need money.
Just because you have bad credit that doesn’t stop you from coming under financial stress and needing cash fast. Life still goes on. You might need a loan for a host of reasons. Your car might break down, maybe you forgot about a bill you have to pay, school expenses, or a family emergency. These are just a few of the reasons you might take out a bad credit payday loan.
The question you might ask is: Why would any lender give me a loan with my credit history? The reason a lender can give you a loan is that the amount of the loan is usually small and they get authorization to deduct the repayment amount directly from your account on payday. This takes away a lot of the lenders risk insuring them that they will receive their payment.
The other reason that a lender is willing to loan you money even though you have bad credit is because it is a high risk unsecured loan they can charge you a high interest rate. This is actually one of the bad things about a bad credit payday loan because this interest rate is usually extremely high, 400 to 1000 percent or more, and can get you in trouble.