Archive for the ‘Payday Loans’ Category
We are living in historic times. The housing boom went bust, along with a few large financial institutions. This caused a tightening of credit lines that we have rarely seen in recent history. All forms of credit appear to be affected, except payday loans. That’s because payday loans aren’t tied to the housing market or to banks. Also, they are based on your employment history, not your credit history.
There are many people facing shortages of cash in these drastic times when gasoline and food prices are sky high. Sometimes all one needs is a little extra cash to cover you over from one paycheck to the next. If your home equity line of credit has been eliminated, your credit card limits reduced, and you have no other forms of credit, you can still turn to a payday loan to help make up the gap, as long as you have proof of employment. These short-term loans are ideal for a monthly shortage of $300 to $600.
If you’ve lost a home to foreclosure or gone through a bankruptcy, you may find that no one will lend to you. This makes it very difficult to re-establish a credit history because you need someone willing to lend to you so that you can prove you pay back your debts on time. People are turning to payday loans during this stressful period to be able to rebuild their credit history. As long as they are paid back on time, you can find that it helps you to improve your FICO score once you’ve settled your accounts and need to go forward into the future.
As some sources of credit disappear, even people without credit problems may need to find different ways to finance short-term needs. Checking into payday loans can help them avoid late fees and overdraft fees too. When times are tough, the payday loan industry will no likely find new customers and new ways to provide a service, not just for low-income people, but for anyone with a credit freeze problem.