There are a lot of people who have bad credit these days. They are the ones who are taking the brunt of the current financial crisis. They are having a hard time getting high paying jobs and with the bad credit that they have, getting loans to shore up their budget is harder than ever before.
What Are Your Options?
Are you one of those whose credit leaves a lot to be desired? What are your options when you need some cash real quick and payday is still a week or two off? There is one option that is open to you and that is to get a guaranteed payday loans bad credit direct lenders. So what is this kind of loan?
Repaying What You Owe
As the name would suggest it is dependent on the pay that you are getting as an employee. The lender would give you the money that you need but it should be paid back in full on your next payday, plus the fee or the interest. They only need proof that you are actually employed. They won’t be checking your credit, so even if you are up to your neck in credit card debt, you should still be able to get it.
Why the Warnings?
Guaranteed Payday Loans Bad Credit Direct Lenders sound good? It does sound okay on paper, but in reality, experts suggest that you stay away from using this financial product. They say that you should look at other options first and only when you have exhausted those should you only resort to this kind of loan.
Common Problems with Personal Loans
To help explain why it is not suggested that this financial product be used, here are some of the most common mistakes:
Borrowing more than what is needed.
The thinking that leads to this sort of mistake is that since one is borrowing already, then one might as well borrow the largest amount possible. That kind of thinking is very short-sighted. You need to look to the future and the fact that you would have to pay it back in full once your get your pay check.
Not being ready for the high fee.
This is the problem with this sort of loan. While it is so easy to get an approval for it, the fee for using the service is rather high. You can borrow $400 but then there is a fee of $60. Did you prepare for a fee that high?
Extending the loan.
When you cannot pay for the loan on the set date then you can extend it. Think that’s a smart move? Think again! That increases the fee that you would have to pay. The $460 loan plus fee that you have to pay just became $520 just because you extended. Try not to extend except in the direst emergencies.
Underestimating what you owe.
You might have several bills that you need to settle all at the same time. You need to make sure that you have enough funds in order to cover for your expenses.
These are just a few of the common pitfalls that you can get from getting guaranteed payday loans from bad credit direct lenders.