How a payday loan can help when you have a poor credit score
What is a poor credit score?
A poor credit score means that someone’s credit history makes them a possible risk. This means that banks think there is a higher chance that person won’t pay back a loan on time and in full.
Credit scores are calculated based on previous lending and sometimes a poor credit score can because of a lack of history – if someone has never borrowed money before, there is no evidence to say they will be a good borrower.
What is a bad credit loan?
If you have a poor credit score and still need to borrow money, it can feel like an impossible task. However, bad credit loans can offer a great solution to this problem.
Offering those with a poor credit score the chance to borrow and pay back in full and therefore build their credit score, they are a great opportunity for the financially savvy.
Although they will come with a higher interest rate (meaning you’ll pay back more overall), if you have a bad credit score they could be your only option to borrow any funds required from BingoLoans ,for that emergency you are facing and a useful tool to rebuild your poor credit history.
What is a Payday Loan and how can it help?
A payday loan can be seen as a type of bad credit loan as it is often available to those who have a poor credit history. This is because the APR on the loan is usually higher than average – the reason the APR higher is because of the costs incurred when lending to someone with a poor credit score. Lenders have to take into account the high default rate, the time it takes to repay the loan, as well as fraud and irresponsible borrowers.
BingoLoans Payday loans are in fact a really useful tool for getting your finances in order. Use them as a bridge between paydays to stop getting in trouble with the bank and pay for those everyday necessities.
So long as you don’t come to rely on them, they can be a vital helping hand! If you make sure you pay back in full and on time, your credit score will improve and you will be able to access more credit, with lower interest rates.