Many people are concerned that their credit is sub-par when it comes to being good enough to obtain a loan. It seems unfair that credit and loans are unavailable to those who need it must and struggle with the bills and financial circumstances in their lives. Among the limited options available are payday loans. There are some advantages and some disadvantages to using a short-term loan service.
Payday loan services are often more expensive and rarely your best option. The advantages of a payday loan are lack of forms and the ease and quickness of obtaining money. Since they don’t require a good credit history and don’t even usually run a credit check they have to rely on other requirements to reduce their risk when they make a loan to you. Generally they will require proof of employment and bills in your name. Otherwise there are few restraints to securing money at a payday loan facility. They are generally unconcerned about what the money will be used for.
Disadvantages generally fall under the category of costs. A payday loan is typically more expensive than other types of loans. There is usually a flat fee for using the service or a percentage of the amount loaned. The time allotted for repayment is quite short compared to other more traditional loans. The main purpose, and how they got their name, is that their target client has a need for some quick cash that they will have available on their next payday, generally within 2-4 weeks.
If you are concerned about using a payday loan service and would prefer to establish a traditional loan from a bank or regular lending agency but you are afraid you will be denied due to your credit worthiness you should do yourself a favor and check the major credit bureaus to find out what your credit score really is. You may be pleasantly surprised by the results and discover that you are, indeed eligible for a standard loan. It is always best to be armed with knowledge before settling for a payday loan. If you have the time and patience you may even be able to positively impact your score, giving you more favorable options in the future. It is a good idea to keep an eye on your credit reports, even if you decide that apartment living is the life for you, to insure there are no irregularities or errors that require your attention.
The bottom line is that you do not have to have perfect credit to get a loan and you can still borrow money. Your options will be more limited than someone who has an immaculate credit rating and there may be some costs and disadvantages, but the money is there if the reason for the need is strong enough to overcome the disadvantages for you. You should consider your other options first but at the end of the day the payday loan service is there to assist you in meeting your needs if you can meet their simple requirements.