Payday loans are intended for individuals who have poor
credit record. Why? Because bad credit loan direct lenders charge high interest
rates and fees on these loans, taking advantage of the fact that bad credit
holders are unlikely to receive short-term loans from anywhere else. If you happen
to have bad credit and are willing to pay $35 on every $100 you borrow, these
loans are just for you. It’s too bad that despite of usury laws the United
States allows predatory lending that can get borrowers into a debt circle that
they can never get out of. Bad credit loans online are probably the worst,
because they are easily obtained nights and days from the comfort of the
borrower’s home. This site is a good example. It is open 24/7 including
weekends, allowing borrowers to apply for a loan with three clicks of the
mouse. Physical presence at the lender’s office can actually give the borrowers
some idea what to do to improve the credit rating or the lender may suggests
other options available (remortgage the house, debt consolidation, collateral or
something else). Online loans or cash advances provide only a form and no
physical contact or talk with the potential borrower.
Is bad credit OK?
You bet! As a matter of fact bad credit direct lenders would
be shocked to find out that your credit is good. They count on your bad credit
history (except Teletrack), because your window of opportunity to borrow money
is very narrow. They don’t have to check credit, because it doesn’t matter as
long as you have sufficient income that can generate their profits. With bad
credit loans, online approval is a quick process.
BadCreditLoansOnline24 offers a form that is an invitation
to apply for a loan, but in fact we strongly suggest and advise you to revise
it and seek other options. In order to qualify for a loan you must have a
regular income (employment, disability, pension, etc.). There are certain rule
for military personnel.
The Interest Rates
If you are not aware of it, then now is the best time for
you to learn that the interest that you will be charged for a quick payday loan
is much higher when compared to other types of financial products that are
currently available. It could run from 300% to 600% when calculated on an
annual basis. The vast range is dependent on freedom online lenders have to
charge any amount that they want in most parts of the country. There is very
little regulation when it comes to a payday loan online.
The Kind of Lenders
When your mind is really set on borrowing in this way, then
you should seek a direct lender. There are brokers out there and if you happen
to deal with them then you will increase the amount that you would have to pay
unnecessarily. That is because they would be charging for the services and you
would shoulder their fees for sure.
Easy Application and Processing
The biggest reason why so many people are attracted to
payday loans is because how easy it is to apply. Here are some of the reasons
why it is so easy to apply for an online payday loan.
Your credit history may not be checked.
You do not have to fax anything.
You will not have to write checks as security for the loan
or authorize a lender to withdraw the amount owed from your bank account.
You do not have to go to the lender’s office because the
application is handled online.
These are the things that you have to consider when you want
to apply for a quick personal loan. Just remember that the process can be easy
but the consequences might cause some serious problems in the long run. Those
consequences should be considered first. Payday loans and especially payday
loans online are a bad idea that can get you in trouble. You have to get busy
and find a reputable lender such as a bank or credit union that can lend you
the money you need in exchange for collateral. This would give you a lower
interest rate and longer term of the loan. In addition, this can actually
improve your credit rating in the future, unlike payday loans.
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