Where Do You Turn To For A Loan If You Have Bad Credit?

by | Dec 21, 2015 | Loan

It is an unfortunate fact of life that there are many people that are industrious and work hard but they have bad credit. It does not take much for an individual’s credit score to decay to the point where they will not have access to conventional sources of reasonable interest rate funds such as banks and credit unions. If you are one of these people it is possible to get approved for personal loans for bad credit standing; you can use your income stream as a form of advance payment.

Personal loans for bad credit are available from a host of companies that provide payday loans; these are short term loans that are designed to be paid off when you get your next pay check.

Most consumers are well aware of the high interest rates that are charged for these types of loans. Yes, if you only look at the APR the rate is high, but if you pay the loan off within the agreed upon period it is a reasonably cheap way of getting out of a short term financial bind. Actually a payday loan needs to be looked at through different eyes. The typical fee for personal loans for bad credit runs about $15 per $100 borrowed, so within two weeks of making the loan you turn around and repay $115. Sounds high, but is it. Let’s assume that you take your family out for a meal and the bill comes to $150. The meal did not cost the restaurant that much to prepare and serve, it includes profit; perhaps their cost was little more than $100. So; it costs you $15 to have someone else’s $100 for two weeks but it costs you $50 if you have the restaurants $100 for perhaps only a day. When you look at pay day loans in a different light you quickly realize that they are quite acceptable under certain conditions.

Let’s be honest, banks do not want to deal with small loans, especially when the applicant has bad credit. Even if the bank were to grant the loan the interest rate will certainly not be the best they can offer and it might take you two weeks to see the money when the need for money is now, not later.

If you have a steady job and a checking account you don’t have to be overly concerned about not having access to money, you do, it just costs a little more and has to be repaid a little quicker.

Personal loans for bad credit are available and if used correctly is a good source of much needed money at a reasonable charge. To learn more visit the web site of Short Term Loans.