Most people think that it’s nearly impossible to take out a loan when you have bad credit. Maybe you’re worried that borrowing money through this route will only worsen your credit score. However, bad credit loans have multiple advantages that can help you in times where your borrowing history has otherwise been a hindrance to getting a loan.
Firstly, bad credit loans allow you to work on rebuilding your credit score. If you qualify for these short term loans and make all the payments on time, you will gradually build up your credit score. After you’ve improved your credit score from taking out several of these short term loans, you’ll be able to get access to better forms of credit from banks and other lenders.
If you have bad credit, you will pay a higher interest rate than if you have good credit. Unfortunately, that’s just one of the facts of life. However, using bad credit loans over non-credit requiring loans can get you a better rate. For example, using your credit score can get you a rage of 50% while getting a payday loan that doesn’t require a credit score could give you a 200% interest rate.
Finally, getting a bad credit loan can help you get more than other types of loans. This can be good if you need to cover a higher cost emergency like a medical bill or car issue. However, keep in mind, the more you pull out, the more you will have to pay.
Do you need good credit for a payday loan?
No. You don’t strictly need to have good credit to be approved for a payday loan. Even though having a good score improves your odds of approval, obtaining a payday loan with bad credit is much easier than with other types of credit.
While emergency loans usually have less strict credit score requirements than most other kinds of loans or credit products. Many private online lenders who offer instant loans online have very low or no requirements in order to qualify.
At the end of the day, good credit is not needed for a same day loan.