subject: Bad Credit Loans Can Help Out [print this page] So many employees are having a hard time in this difficult economy, even people with good jobs, and some of them are even suffering from the effects of bad credit. As it sometimes happens, bad credit can be caused by situations beyond our control, and although it may be the result of poor choices, many times it is not. No matter what causes our credit problem, bad credit loans are now available to employees with bad credit.
A particularly irritating thing about having bad credit when emergencies pop up is that it makes getting a loan pretty difficult. And, to make matters worse, you may not even know your credit rating has deteriorated before you need a loan. Just one late or missed payment can cause a domino effect on all your accounts that report to the major credit reporting agencies. Next thing you know, your rating can drop without notice. And that can be an unwelcome surprise when you need get turned down for a loan.
Although bad credit loans can be used for any purpose, they should only be considered for real emergencies. Borrowers who decide to take advantage of single payday loans will have use of the loan money until the next payday rolls around, but when the next paycheck is deposited the whole loan and interest and fees will all be due. Obviously, this is important to remember because it may seem like a really long time between paydays until a loan repayment is due. That's when time can simply fly by.
Short-term loans that are due on your next payday are available to borrowers who are at least 18 years old, and have a regular paycheck and bank account. Those are the basic qualification guidelines. Fortunately, having good credit is not one of those requirements; no credit report will be needed at application or approval. Many people consider this the best feature of single pay loans, and serves as the primary reason you often hear them called bad credit loans.
On the other hand, banks, credit unions and credit card companies make consistent use of credit reports before extending credit to their customers. Assessing a borrower's credit is the chief way those institutions determine whether to make a loan to a particular borrower. But payday lenders secure their risk by scheduling an automatic withdrawal on your bank account, and it will correspond to the date your next paycheck is deposited, making it possible for short-term loans without the use of a credit score to be offered.
