According to a report from Pew Charitable Trusts, almost 6% of Americans nationwide have taken out a payday loan in the past 5 years. Not only this, these adults use this payday loan to cover everyday expenses, like utility payments, car payments, food, rent, or mortgage payments, instead of emergencies. 69% of payday loans are used to cover these recurring expenses, compared to 16% used for emergencies.
The report also found that people of most ages and income levels have taken out payday loans but it is concentrated around younger individuals who have low to moderate income levels totalling $40,000 a year or less. The report also found that borrowers who are more likely to take out a loan are African-American, lack a 4-year college degree, renters, or are separated or divorced. Along with this, about 75% of these borrowers go to a physical lender while the remaining quarter turn to online sources. These borrowers take out typically eight loans a year.
Summertime is here and it is hot! In case you haven’t noticed, we are seeing record highs across the nation. It is a very hot summer and in fact, the first half of this summer has already been one of the hottest. This means days at the beach and relaxation by the pool. If you don’t have these luxuries, you may be wanting to stay indoors and out of the heat. This can really lead to some high costs.
Because of the heat, your utility bills are going to be high, unless you choose not to cool your home. If you have a lawn and plants, you will also need to water more frequently. While the heat is still going strong, you may be struggling to keep up with the bills that are racking up. If this happens to be the case, consider a payday loan. These can be approved in minutes and require no credit check. This can give you money into your account fast and allow you to keep the power on. Stay cool this summer, but try to stay on top of your bills.
According to a 2011 article by Martin Lewis, you can actually boost your credit rating by utilizing payday lending. With proper preparation and knowledge, you can use payday loans to their full potential and improve your credit score. This should not be your first option to improving your credit. Payday loans can be expensive and can end up being more harmful to you if you are not prepared.
Banks will probably deny your application for a loan if you have bad or no credit. This can be bad if you are looking to take out a mortgage. If you are continuously short on money, you certainly cannot easily boost your credit rating and may need to take out payday loans because of their no credit check. If you can plan accordingly with these payday loans, you can improve your credit score. Taking out a payday loan (and paying it back) goes on your credit file. If you can pay it back on time, you will be likely to receive a positive rating by the lender, thus boosting your credit score.
Payday lending has received its fair share of bad press. It is the truth though, payday lending has with it high interest rates. This disadvantage is shadowed by the benefits offered, such as instant approval and no credit check. It can be very beneficial to those who need cash fast to cover rent or feed themselves or their children. If you are considering getting a loan, consider all of your options first. A payday loan should be your final option in getting yourself out of financial trouble.
First of all, you should always have a sound financial plan. You should always be aware of what you can and cannot afford and know how much you plan on receiving each paycheck. Even though it seems like you can afford something now, plan for it in your future. Be sure to always know your financial situation. If you get yourself into hot water and need to take out a loan, use it as a learning experience for later. Know how you got into the situation, and what you can do in the future to prevent it from happening again.
America is a nation that is always changing. Throughout the past few years America has been through some rough times. A lot of people have experienced financial problems. Many people have lost their homes because they couldn’t afford to continue paying off their loans.
Not paying your bills has created a nation full of people with bad credit. Luckily, applying for a loan with bad credit these days isn’t as hard as it used to be. There are many companies that specialize in bad credit loans.