subject: How to Pick the Best Payday Advance Lender [print this page] How to Pick the Best Payday Advance Lender
Obtaining a payday loan with poor credit isn't guaranteed, but is very possible. Most people think that if they have poor credit, they have no chance of borrowing any money. That just isn't true, in any economic situation. Here we'll examine the different types of loans and the likelihood of obtaining a loan, even for people with bad credit.
Home Loans
Most lenders will not give hundreds of thousands of dollars to someone with a poor credit rating. The one exception is if you have a significant down payment.
Depending on how bad your credit rating is, you potentially have to put as much as 50% down in order to pbtain a home loan.
Car Loans
Car loans are similar to home loans. Since they're generally loans of $10,000 to $30,000, your credit also plays a big factor here.
Most banks will carefully examine your credit for a car loan. Although getting a car loan with poor credit isn't impossible, with poor credit you'll be facing much poorer loan conditions. You'll be paying higher interest for a shorter term loan.
Personal Loans or Cash Advances
Payday loans are loans under $1,500 that aren't based on collateral. Instead, these loans are higher interest short term loans meant to help people get through economic hardships.
Many lenders in this category are willing to give out loans without even looking at your credit score. This means it's not hard for you to get a loan, regardless of your credit history.
The most important factor in getting a personal loan, payday loan or cash advance is your job situation and your income. The lender needs to know that you have the economic ability to repay what you borrowed when your paycheck comes in.
If you're borrowing a thousand dollars for example, the lender wants to know that you're at least getting $1,200 back when your paycheck arrives so that you can repay the loan. If you can fulfill this requirement, then you can easily get a payday loan without having good credit.
Mortgage loans and auto loans for tens or hundreds of thousands of dollars are hard to qualify for if you have poor credit. However, short term smaller loans are easy to get approval for and most don't even need a credit check!
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