Payday Loans

Can People With Bad Credit Get A Fast Cash Advance Loan?

As per latest studies and reports, in the present economic scenario, it is unfortunate to see that the majority of consumers who are looking out for fast cash advance loan programs are the ones with very poor or bad credit. Though it is very easy to obtain a payday loan even if your credit score is zero or negative, it is not advisable. There are lots of payday loan companies out there in the online as well as offline market that will encourage you to borrow small short-term cash advances from them despite your bad credit. It is true that these lenders do not look at your credit score to determine your eligibility, but it is very important for you to keep in mind that they charge a hefty amount of money in terms of interest and an array of additional fees. These loans, in short, are very costly. That is the reason why a large number of payday loan borrowers, especially the ones who are suffering from poor credit, fail to repay the loan in time and eventually get trapped into endless cycles of debt. Therefore, you will have to be very careful in your decision.

Why Is Payday Lending Different From Conventional Lending Practices?

You must be wondering why your bad credit does not prove to be a hindrance in getting a fast cash advance loan while conventional lenders reject your loan applications straightaway. There are different reasons that are usually given in this regard. For example, lenders claim that they take risks and that is why they charge unusually such a high rate of interest on these loans. On the other hand, the FTC (federal Trade Commission) and organizations that do not approve this type of lending practice and rate it as predatory loans claim that lenders do not check your credit rating just to make these loans more tempting so that they can attract more customers and make more money. In fact, the FTc has even issued statements against payday loans and has advised consumers to avoid it because it can damage their finances very badly. Though it seems a matter of debate, you cannot deny the fact that sixteen states in the United States of America have put legal ban on these types of loans. So, one thing seems to be clear – there is something very seriously wrong about payday lending, particularly the ones that are issued to people with bad credit.

What Does Bad Credit Mean?

If you are suffering from bad credit score, you must have a clear understanding that your bad credit is an indication of your poor financial health. When your FICO score is less than perfect, it means you have not been very good in handling your finances and debts. You have probably been making defaults on your existing loan accounts and are even having difficulty in arranging enough funds to meet your basic needs. At this stage, if you are considering borrowing a fast cash advance loan, you are probably doing it so that you can get some quick money that should help you keep up with your payments on other debts and bills. It is very important for you to question yourself how you will manage to arrange almost double the amount of money you are borrowing within a matter of just a couple of weeks to ensure timely repayment when you are struggling with your existing debts and other financial liabilities. You are probably

expecting a miracle, which rarely or never happens.

Always remember, a fast cash advance loan is just like any other payday loan, which charges you somewhere around $60 for every $100 of loan you borrow for a small period of fourteen days. Therefore, you are advised to review the actual reasons why you want to borrow q quick payday loan, and at the same time, you should also do a thorough analysis to find out whether you can afford timely repayment on such loans. In short, people with bad credit can definitely get a payday cash advance, but it is not at all recommended.

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