Banks refuse to lend you money? Apply for a payday loan
People with a bad credit history will find it almost impossible to be able to take out a loan at a bank or any other financial institution. Of course, this might not be bad altogether, because one’s credit score can be seen as a protection against ending in a financial problem which cannot easily be fixed. Taking out another loan in spite of a bad credit history is usually not a wise thing to do. However, there can be situations when cash is needed quickly and for a short time. This might be for example, the repair of a tool without which one cannot carry out one’s work, maybe a medical treatment that has to be paid for, or for any other financial emergency which unexpectedly has occurred. This is when a payday loan can be the ideal solution.
A payday loan is a loan secured against your next salary. The amount one is able to borrow with a payday loan can therefore not exceed the sum one receives next payday. Also, a payday loan is a short term loan, and usually has to be paid back within one month, in other words, on one’s next payday, hence the name. Although a payday loan is secured against next month’s income, it is still an unsecured loan, as there are no assets one has to provide in the event of not being able to pay back the money. This is why payday loans tend to be not the cheapest option.