What exactly is a Bad Credit loan?
If you have done any amount of web surfing in the last few months – and we know you have, because you’re doing it right now – you have no doubt heard the expression “bad credit loan.”
It’s no secret: although the term Bad Credit loan is fairly new, it is actually just a new name for an existing product. Payday loans, also known as cash advances or paycheck loans, have been around for decades.
So why the new name?
Because although everyone has heard about payday loans, not everyone knows what they are or what they can do. Payday loans are based on employment. They aren’t approved because you make over a certain amount of income, they are approved because you have ANY amount of steady income.
This is why they have always been called “payday loans” because if you have a regular payday, you can get a small loan. And that loan is due to be paid back on your next payday. Pretty easy stuff, right?
Bad Credit Loans and No Credit Loans Are the Same
In 2016, your credit score is more important than ever before. Not only do banks and credit card companies judge you based on this number, but more and more employers and landlords are using credit score to determine if you can get a job or a place to live!
Without a good credit score, it is impossible to find a bank or a credit union to loan you money – or even extend you a line of credit.
You might think there was nothing worse than having a bad credit score, but there is! It’s called “no credit.” And it makes you virtually invisible to banks. No credit means you’ve never borrowed money or had a credit card before. You are a blank slate… and lenders apparently hate this about people! They would rather you have bad credit than no credit at all.
And THAT is exactly why payday lenders have started changing what they call their product. It lets people know right away that this kind of loan is not dependent at all on your score.
Do you have a job? Terrific, let’s do business.
Lawyer? Airline pilot? Bank teller? Fry cook? It doesn’t matter! If you have a job, if you have a payday, then we absolutely do not care about your credit rating.
Not All Loans are Created Equal
Now, don’t go thinking that all bad credit loans are the same. They aren’t. There are hundreds of different lenders, each of whom may have different terms and conditions. And honestly they can call their loans whatever they like – one business may call it a Bad Credit loan, another may call it a Super Magical loan, and its basically the same product.
Here at National Payday, we have always dealt in payday loans, and we’ve never changed our words to fit the times. We have never ran credit checks, and never will. We are the original Bad Credit loan people, here for over a decade, so if you have credit problems you’ve come to the right place.