Nowadays, many people suffer from bad credit rating that prevents them from enjoying some financial privileges, such as getting a payday loan. If you are one of the millions of people who need to pay for something urgent and important, I’ve got good news for you. Here are 5 ways on how you can get a payday loan even when you currently have a bad credit rating:
- Check if You’re Eligible
Gone are the days when almost all lenders shy away from payday loan applicants with poor credit rating. In our modern financial world, there are a lot of lenders that can approve your payday loan application as long as you meet their eligibility requirements. One of the most common criteria is having been in your current job for the last six months. This shows how stable your income via salary is, which is very crucial for payday loans. Your re-payments would be deducted straight from your salary on the same day your employer gives it, hence the name of this type of loan. The reason behind this is that payday loan lenders look at your capacity to repay, rather than rely on your credit history only. To check for the eligibility criteria of the lender, you can either visit their office or go to the lender’s website.
- Compare Potential Lenders
Never settle for the first payday lender that you see online. Always find about three or four alternative lenders and compare their offers. Basically, you need to see how much money you can borrow, rates, repayment scheme, and other terms and conditions. Since payday loan is a short-term type of loan, you would expect to see higher rates for repayments in comparison to traditional types of loan. However, you still need to see which payday loan lender will give you the best rate so you can save money. In addition to this, make sure that the lender is not a loan shark. You must verify that they operate legally. Also, they should have a reliable customer support service to meet your needs.
- Only Borrow What You Can Re-Pay
A certified payday loan lender will not allow you to borrow an amount that you cannot actually afford to repay, based on your salary and other eligibility criteria. This is a safety net for you; however, you still need to think about how much money you can borrow AND afford to re-pay in a given short period of time. Make a plan on how you can work out your budget, and calculate your ideal re-payments to ensure that your salary can still pay for your food and bills, and eventually, prevent you from incurring more debts.
- Find a Co-Signer
Do you personally know someone who has a good credit rating? A family member or a friend with a nice credit score can co-sign your payday loan. With a co-signer, you will be more encouraged to strictly budget your needs against your salary, and effectively re-pay your payday loan on time.
Getting a payday loan while having a bad credit rating can be tricky, but these four easy ways are your gateway towards a successful application to a reliable lender.
Visit Payday Piggy Lenders and find out more about how you can borrow money fast and get the money transferred into your account.