Here are reasonable circumstances wherein you could consider a payday loan as the best credit option:
- Bad credit history. Many have been here before and it’s common. Bad credit file could really limit your loan options especially when you have failed to pay back a previous loan or worse, defaulted it. These missed payments damages your credit score and at times, limits your application for any form of loans of course, depending on your credit provider. But since lenders has the right to review your credit file to ensure you will be able to pay off the money you will borrow, a bad credit history really has a negative impact.
- Low-cost than a bounced check. Writing a check bearing in mind that the money in your account doesn’t entirely cover the amount in the check could cost you overdraft fees. Moreover, multiple bounced checks would do nothing aside from burying you in debt. With this in mind, it’s a perfect scenario where a payday loan is a better option than having to deal with a bounced check.
- Cheaper than penalties. As if surprise utility bills and plumbing services aren’t enough, you also have fines and penalties to deal with from the bank and/or other companies. A quick and small amount loan to pay off a penalty or additional fees due to missed payments is more than preferred rather than let your fines add up and eventually drown in debt. A one-time payday loan is of good help when you experience this situation as long as you take the responsibility of paying off that small loan.
- Better choice that getting shut off. Having your electricity disconnected or your internet service cut off due to inability to pay can actually cost you a lot when it comes to re-establishing your services. Prevent this from happening by contacting your payday lender.
- Maxed out options. Finally, when you have tried everything in your power and reached out to anyone that could help you and nothing truly is left but to turn to payday loans. You may be currently paying off a credit debt, a loan and so on that applying for another loan is no longer possible. Don’t fret just yet and see the silver lining in payday loans.
Do remember, this shouldn’t be a regular option for whenever you fail to pay your bills, fines and other emergency expenses. The best way to prevent all these from happening is being prepared by saving ahead of time for emergency bills and other expenses, taking a side job or finding ways to earn extra cash in order to cover for your unexpected fees. Opting for a payday loan should never be a regular thing for you. Also, before even applying for a payday loan, you be mindful to pay back on time to avoid additional charges.
Author: Chie Suarez has spent time figuring out ways on saving money and stepping away from her go-to retail stores. She then became a writer for Speedy Money which offers hassle-free various online loan services.