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.