Credit ratings are often recorded in a letter grade fashion such as A, B or C. Each of these ratings indicates the borrower’s status and informs others through various criteria, whether or not the borrower is bankrupt. Credit ratings keep track of the borrower’s payment history. Sometimes if an individual’s credit rating is bad, they will have problems when applying for loans and other money-related privileges. For this reason, and many others, money management is key when using credit cards, or taking out a loan.
Sometimes, even if you have a bad credit rating, you can still apply for a short-term loan, such as the loan. This is because the loan lenders will not check your credit rating. A payday loan is meant to assist those who need fast money in between their paychecks. The payday loan ranges, on average, anywhere from $100-$1500. Once your application is accepted, you will receive the payday loan in your checking account usually within 24 hours. Repayment for the payday loan is expected on your following paycheck; generally up to 30 days after the loan has been received. It is important that you pay off this loan promptly, and not let it sit there. Like any loan, the longer it takes for you to pay it off, the higher the interest will continue to grow.
If you do not have a credit rating, you may find that because you don’t need one to obtain a payday loan, that this is very convenient way for you to borrow money. However, by not having a credit rating, you are cut off from various other privileges. Without a credit rating, for example, you may have difficulty being accepted for bigger and more important loans from your bank, such as a mortgage loan. If you manage your money well, and you wish to gain good credit, apply for a credit card, instead of choosing a payday loan. You would be surprised to learn that the interest rates differ between the various credit cards that you can apply for, and that these rate are often much cheaper than a payday loan.