Many of you might wonder if a bad credit score may affect your eligibility to apply for a payday loan. Most of the time Payday loans are preferred by those who are in need of an urgent money but at the same time, they are dealing with a bad credit. This type of loan helps them to repay the amount on their next paycheck. You can get the leverage of an easy loan even with a bad credit history as payday lenders do not run a hard credit check to check provide you a payday loan. Thus, they simplify the process of application. However, you might be asked to provide the payday lenders an advance check to cover the advance cash amount after it gets credited to your account.
How to Clear your Payday Loan?
Always make sure that your post-dated checks must easily be cleared by a bank. If your check does not get cleared then it might have an adverse effect on your credit card. So it is very important to have a good backup of money to clear your payday loan once it is due.
It is advisable not to fail in repaying your advances if it happens then the lender might sell your debt to a collection agency along with reporting the credit bureaus
What are the Consequences of Failing to Repay your Payday Loan?
It is possible that you might take out bad credit payday loans but for some genuine reason, you are unable to pay it back in time. If this is the case then you should reset your payment plan to a new one for repaying the cash advances. However, this may cost you extra interest and fees. The positive side of this is, you save yourself from being a defaulter and from damaging your credit score. You should keep cash advance loans as a last option for your cash needs.
Remember not to delay payments on a payday loan to keep your credit score going negative. This can easily be achieved by taking the advances only as per your budget and not overloading it. Always keep a check on your expenses using a credit card during such times if you want to have a good score. You can easily monitor your credit score by viewing your credit report online.