subject: Can You Get A Quick Cash Loan Even If You Have Bad Credit? [print this page] Nobody plans on having a bad credit report anytime soon, but sometimes it just happens. And the worst part is that it can come as a complete surprise when least expected. For example, sitting in a car dealership when the vehicle of your dreams is waiting outside for you to jump in and drive home, but all of a sudden the salesperson pulls up a credit report and announces that you don't qualify for the auto loan. That is not an especially good day.
Bad credit loans are not for homes or vehicles, although some options are available for those purchases. But the term is used primarily for loans that can be obtained without a qualifying credit score at all. These short term loans can really save the day between paychecks when cash is low and stress may be high. When unexpected emergencies hit and there is no cash or savings to meet expenses, that's when payday loans are very useful.
People with good credit often have a variety of options for borrowing money. But when a credit score slips it can really narrow the options available for borrowing some quick cash. Friends and relatives may be interested in helping out, but they may not, which leaves commercial lenders such as banks and credit unions. Naturally, those institutions have to rely on a credit score in order to qualify customers for most types of loans, especially small, unsecured loans, or signature loans as they are usually called.
So, bad credit loans got that name because they are available to anyone without the use of a credit report as a qualifying tool. Payday loan lenders do not rely on credit reports at all, they have another way to achieve security when they extend a loan. Here's how it works - you fill out an application form on which you provide bank routing information. Your loan money is wirelessly deposited into your account, and then, on your next payday, it is withdrawn for a complete repayment of your loan. The repayment amount will be larger than the loan amount because it will include interest and fees on the loan.
The loan paperwork for bad credit loans will specify the exact repayment amount and the date it will be withdrawn from your bank account, so be certain to pay close attention to these details before and after signing the documents. If there will be a problem repaying the entire loan amount, plus interest and fees on the date of your next paycheck, be sure to speak to your lender well in advance of your next payday to discuss the possibility of a loan extension. Bad credit loan can often be extended, but the cost is high, so it's best to pay them on your first payday following the loan.
Summary: Bad credit loans got that name because they are available to anyone without the use of a credit report as a qualifying tool. Payday loan lenders do not rely on credit reports at all, they have another way to achieve security when they extend a loan.
