Having bad credit is something that a lot of people live with, but don’t feel comfortable discussing. This is because of the negative connotations that the term “bad credit score” often comes with. A lot of people associate poor credit ratings with problematic and reckless spending, being unreliable, and even gambling issues, but a lot of the time, this isn’t even the case.
The fact is, one missed payment goes straight onto your credit score and immediately negatively impacts it – so one mistake can lead to months of grief. One of the most significant issues surrounding bad credit is that it can be challenging to get a loan – but it is possible, and contrary to popular belief, payday loans can actually be incredibly helpful.
Payday Loans – What’s The Deal?
A lot of the time, payday loans get negative press, but they can be extremely helpful when used in the right way. Untrustworthy companies can be guilty of preying on the wrong sort of client – but so long as you go with a well-reputed organization, they don’t cause much harm – plus they don’t check your credit score.
Say you were looking for an organization that offers no credit check loans Canada – all you’d have to do is type these keywords into your preferred search engine, research accordingly, and you’d be likely to find a trustworthy company reasonably quickly.
The deal with these online loans is that used correctly; they can be beneficial. So long as you’re only borrowing as much as you can afford to pay back the following payday and there’s no small print in their rules and regulations (always be on the lookout for this), it shouldn’t really cause any harm.
You can apply for the exact amount you need to borrow, and it’s likely to be in your account the same day. The only advice we’d give is not to make a habit of borrowing in this manner. If you do it regularly, you’re likely to be judged by other lenders – either rightly or wrongly – so keep it for emergencies and rare occasions. After all, that’s what they were created for.
Ask A Loved One
If you require a short term loan and don’t want to go through the official rigmarole of things, providing it’s not a large amount, you could ask someone that you love and trust to lend you the cash until you can afford to pay it back. The issue with this is if you can’t afford to pay it back quickly or within a reasonable timeframe, it can cause tension within your personal relationships.
Really, we only recommend doing this if it’s a small sum of money, and you know that you can absolutely pay it back in the short term. The last thing you want is someone’s kindness to result in a dispute over money. Money can break even the strongest of relationships, so think long and hard before doing this.
Another thing we should mention is that as much as all of your loved ones would love to help you out, not everybody can. So if you feel you can ask, ask – but never be offended if someone says no. It’s not likely to be anything personal, they just probably don’t actually have the funds to do it.
It can be challenging to be approved by lenders if you have bad credit, so if you pledge collateral a lot of the time, they’ll know you’re serious. Plus, they know they’re more likely to get the money in the long term.
However, this isn’t something to be taken lightly. Say you pledge equity on your home and can’t afford to pay it. This could result in you being forced from your home. This is only an option to consider if you absolutely know it’s financially viable for you, so don’t use it as a “go-to” solution. Evaluate all of your options.
Visit A Credit Union
Last of all, visit a credit union. You never know who might be willing to help you out. A lot of the time, these organizations are smaller and are therefore more understanding than large banks, and will be more likely to work closely with you. Plus, if you’re more of a face to face sort of person when it comes to business, you’re likely to get to sit over a desk from someone and discuss your finances.
If you are interested in even more business-related articles and information from us here at Bit Rebels, then we have a lot to choose from.