If you have ever taken a loan, you are already familiar with the term ‘Credit Score.’ A good credit score helps in determining if you are eligible for availing more loans from financial institutions. But what if you have a bad credit score? Are you still eligible for a loan?
There are numerous questions, but we would like to give their answers in just one sentence: Yes, you can get a loan even with a bad credit score. To be specific, you can qualify for online payday loans for bad credit. You can follow the tips to get a payday loans for bad credit on timebusinessnews and quickly get out of any cash crunches.
To those who are still unfamiliar with the benefits of payday loans, keep reading, and you’ll learn more.
- Easy Application/ Convenient loan process
Usually, taking a loan is a very time consuming and lengthy process. However, that is not the case with online payday loans. You don’t have to make an appointment with the bank officer or pay regular visits for completing documentation and numerous other formalities. You can apply for payday loans online and save your time.
- Short Term Borrowing and Flexible Loan Amount
The best part about payday loans is that you can borrow a loan for a minimal amount, such as mobile bills, rent, credit card payments, repairs, etc., And because it usually involves a small sum of money for a short period [generally a month or maximum six months], you can quickly repay it without feeling any burden.
- Privacy Protection
You can apply for a payday loan over the internet. That means there is no involvement of a third person handling your official documents. Hence, you can protect your privacy.
But, hang on!!
Now that you have learned about how payday loans can be a lifesaver in emergencies. Here are some of the reasons that might result in a bad credit score in the first place.
- Late Payment
According to the FICO score, 35% of your credit score gets affected by late payments. These payments can be your credit card bill, EMI of loans, and interest. Besides that, irregular and inconsistent payments also lead to a bad credit score.
- The High Credit Utilisation Rate
There is a myth that your credit score doesn’t get affected by paying your credit card bill on time. Well, here’s a catch, If you use more than 45 to 50% of your credit limit, your credit score gets low.
- Bad Credit Mix
Credit mix involves a mortgage, student loan, credit card, personal loan, etc., (Mix of both installment and revolving dues). A bad credit mix of all these dues can affect your credit score up to 10%. That consequently leads to credit denials in the future.
The Bottom Line,
Having a bad credit score is a nightmare for every person, and this nightmare becomes even worse when you need money for any emergency. In such a situation, for your rescue, you can opt for online payday loans for bad credit without the fear of credit denial.
Moreover, a payday loan is not included in the credit mix. So, you can easily protect yourself from getting into a bad credit score any further.