Why Can You Call a Payday Loan a "Bad Credit Loan?"
Payday loans are based on your next expected paycheck. If you earn, for example, $2000-$3000 per month, you might be able to borrow $500 or $1000 from that check from the payday loans company you work with. This amount varies by state, but most provide the payday loan as long as you are 18 years of age, have had your job one month or longer and have a valid bank account.
Here are three frequently asked questions about payday loans:
If your credit score is low, can you still get a payday loan?
Yes, you can get a payday loan even if you have a poor credit score. This serves an important function to the millions of people who suffer bad credit ratings through no fault of their own, but instead who have been battered by economic circumstances in the past three or four years.
Why doesnÔÇÖt the payday loans company require a good credit score?
You certainly can get a payday loan if you have a good credit score, but payday loans exist largely to help individuals who are rejected by the credit score-based system. Instead, the payday loans companies (near me) provide are based on the person having a paycheck in the relatively near (30 days or less) future. The loan is intended to be of a short-term nature and meant to cover costs that are immediate. Payback on the first loan leads many companies to expand the size of loans that are available in the future.
Can payday loans help improve a credit score?
If you have a poor credit score, you can improve it by paying bills on time. If on occasion you need a payday loan to help meet those bill payment due dates, then yes, a payday loan can improve your credit score.