Payday Loans

What Are The Eligibility Criteria For Cash Advance For Bad Credit? What Are Its Benefits And Dangers?

Qualifying for cash advance for bad credit is very easy. Since these payday loan programs are meant for people with unimpressive credit history, your credit score does not play any role in determining your eligibility. It means even if you are going through the worst credit situation, you can still go ahead and get instant cash. In fact, it is very important for you to understand that none of the payday loan companies looks into your credit

score to decide whether they should issue you a cash advance. You cannot expect a lower interest rate if you have good credit score. Whether you have good or bad credit, it does not matter at all. Your eligibility for a payday cash advance does not depend on your credit report. Your credit score is never checked by payday lenders. That is why these short-term loans are also termed as easy and fast loan programs.

You Do Not Necessarily Have To Be A Salaried Individual

Anyone with a regular source of income and with a bank account can qualify for cash advance for bad credit. Though many payday lenders prefer to issue loans to only those applicants who have maintained a decent employment history, you do not necessarily have to be a salaried individual to obtain a bad credit payday loan. It is not your employment, but a regular source of income that is a criterion to determine your eligibility for these short-term loan programs. It means even self-employed professionals can apply for these loans and get approved. Lenders are only interested in those people who get a certain minimum amount of money deposited into their bank account every month.

Many cash advance companies are also issuing loans to those people who are neither salaried individuals nor self-employed professionals but still have regular sources of income. For example, if you are receiving a certain amount of alimony payment every month, you can be an eligible applicant for cash advance for bad credit.

You Do Not Necessarily Have To Have A Checking Bank Account

It is also a misconception that only those people who have a checking bank account in their name can qualify for payday loans. In reality, the majority of payday loan companies are approving loan applications of those who have a saving bank account. The most important thing is that your regular monthly income must be deposited into a bank account and the amount of the income must be big enough to ensure timely repayment.

Benefits And Danger

That payday loans are easy to obtain is an attractive feature, not a benefit. Most payday lenders advertise about their loan programs aggressively and count those attractive features as benefits. Therefore, you are strongly recommended to get yourself informed about it. It is very important for you to keep in mind that just because something is easy to obtain, it does not necessarily mean it is beneficial also. Cigarettes are easily available everywhere, but they are injurious to health. This is just a very simple example to let you understand the difference between benefits and features. A cash advance for bad credit is the most expensive financing option available out there in the market. You are issued a $500 of loan and are asked to pay back over $800, which cannot be termed as reasonable from any point of view. Worse, the outstanding loan balance multiplies itself very fast once you miss the due date for repayment.

Therefore, if you are considering borrowing a cash advance for bad credit, you are strongly recommended to think twice. Do not make a decision on the basis of temptation. Make sure your decision to borrow a payday loan is based on facts and figures.

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