We strongly suggest that you consider every possible option before considering a bad credit loan. The lenders that offer these loans can help you get through a difficult financial period that you may be experiencing. However, the vast majority of such loans come at a considerable expense. The money that you pay to get these types of loans is quite expensive. You can expect to pay between $10 and $25 per $100 that you borrow. This is among the most expensive loans available anywhere. If you have any other alternative, you should consider it before accepting a bad credit loan.
What’s more, typically these loans have a very short repayment period. Usually, the repayment period for loans like these is less than one month. Sometimes, the lenders will require that the loans be repaid by your next payday. For most people that’s often within a two week period. Having to pay $25 in order to borrow $100 might sound like a 25% rate of interest, but that’s not the cash. Since the loans are due to be repaid in a short time-frame, the loans are actually a much higher annualized interest fee. In some extreme cases, the annualized interest can be several thousand percent! Again, if you have any other alternative you should consider it.
Traditional banks, like Wells Fargo for instance, are now offering payday loan alternatives. So you may want to look into one of those loans before considering one of these. They loans that are being offered by these traditional banks are essentially payday loans too, but the interest and fees that they are charging are lower than those at traditional
online payday loan lenders.
The money that you obtain from a payday loan (also known as signature loan) can be used for any reason whatsoever. We strongly suggest that you only take on such a loan to pay off debts that you have no other way of paying off. But again, this money is expensive, so more than likely, any other loan that you have outstanding is going to be less expensive than a payday loan is going to be.
So our recommendation would be that if you have no other choice and have to get a payday loan, you use it only for unexpected expenses that you have no other way of repaying. This could be (for example) unexpected medical bills, unexpected car repair expenses, etc. Other examples might include you having to pay your rent, mortgage, or utilities. If you have no other option, then you can (and maybe should) consider these bad credit loans.
Again, if you are unable to secure a traditional loan and you have exhaustive all other avenues to try to obtain financing, then you should consider one of these direct lender loans for people with bad credit. The money that you obtain from these types of loans is very expensive, but if you need cash now, these types of loans can help you get through a tough financial period. If you do get a payday loan, borrow as little as you can. This will allow you to pay as little in interest and fees as possible. Also, of course, make certain that you will have the wherewithal to repay the loan when it is due.
Category: Payday loans