Due to the recession, millions have seen their credit scores ruined. Many beyond repair. So the lure of payday loans for people with bad credit is no surprise. That is fine if these instant online loans were exactly what they are claimed to be, but they are not. They are a sort of handcuffs that you will discover are very hard to get rid of.
Generally, when you borrow from a credit union or a bank, you are protected by the federal government against loss and fraud. When you take out an instant payday loans for bad credit, there is no safety net. The payday industry is not regulated by the government. So you are at the whim of a lender once you sign the agreement. You do not have to pledge anything in return. There is no credit check run to see if you are a responsible borrower. Despite all this convenience and ease you may have to be brutally awake to come to your sense.
So if you are not dealing with a traditional lending industry but lenders that offer payday loans for bad credit, then who are these payday loan lenders?
When you sign the contract for one of those instant payday loans, you will be shocked to discover that you must repay the money in no less than two weeks. And not only pay it back quickly, but you must also agree to an interest rate of 35-40% interest.
Not only do you have to agree to such a crippling interest rate, but that interest rate is calculated daily. What that means to you is that 40% interest charge grows every single day once you take out your instant payday loan. And the longer you take to pay it back, the larger it grows.
Answer The Door
You will need to brace yourself for the knock on your front door. Guess who that is? Yes that is correct, it will be your debt collectors and they will not go away. They want their money and they want you to pay up. If you cannot pay at the moment, you better have some extra cash available because they will not accept anything less. And even though you have given that small deposit, you will still be charged a penalty for being late with your payment.
So do you still want to try that instant personal loan? Do you want to put yourself at risk with you just because you have bad credit? If you think about it, an instant payday loan for bad credit is bad news and you need to refuse it.