Payday loans are usually granted to people with no regards to credit score. That is why a lot of people with bad credit chose this option. It is not easy to get a loan from a bank without having a good credit score, as they perform credit checks and it is impossible to avoid it.
Thus, payday lenders with their lenient terms look very appealing to all the customers and especially to the ones with bad credit. However, this is not the loans for bad credit customers only for that matter.
Who uses payday loans?
It is a common misunderstanding; however, that only low-income families resort to this option. In fact, payday loans are employed by various groups of people when they need cash fast and there is no time to wait. Surely, lenders do not offer loans to customers who are younger than 18, do not have the U.S. citizenship or are unemployed. There are some limits to payday loan usage.
In fact, as the name and nature suggests, payday loans are really meant for unplanned situations when cash is required without delays, or when you have no other option than to go to a payday lender due to your bad credit.
What about if I have good credit?
There is no difference to a payday lender whether your credit is good or bad; actually, they do not pay any attention to this issue. Payday lenders do not perform credit checks; they simply ask several questions and require very simple things from a potential borrower, if compared with banks and even credit unions and etc.
As a matter of fact, good credit makes as little difference as bad one. If you are in trouble, for example, your car has broken down or you need to have some bills covered or rent paid in the next few days and your paycheck is weeks away, there is nothing easier than to apply for a payday loan. There is hardly a more convenient option.
Basically the misconceptions of payday loans are huge, and these loans are taken out by people from all walks of life. If you are in dire need of emergency money, a payday loan is the quickest, easiest and most efficient way to obtain emergency cash.
There are a lot of things that are not really true about payday loans. These unsecured cash credits are more expensive than traditional loans, this one is true. However, they are also much easier to get and repay than any bank loan. They are also small in amount – and you don’t always need large sums for long periods; they are also short term. It is like borrowing from a friend or a family member but without any personal obligations and awkwardness that may arise in case you are unable to repay in time. With payday loans it is solely your responsibility and it is quite cool to understand that as well as employ such a possibility at full swing.