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Payday Loan Lenders Do Not Have Varying Interest Rates Based On Credit

Written By emilie dane on Thursday, March 7, 2013 | 5:28 PM


Will having good credit get you a better deal with payday loan lenders? The direct lender will not use your credit score in order to approve your loan or charge a certain interest rate. Payday loan lenders online will have set prices for residents of each state they do business with. The rates may change from state to state depending on state regulations. Having good credit will not get you a special interest rate for a direct payday loan.

Can you get better deals anywhere for having good credit? Sure you can. Banks and credit unions, mortgage lenders and even credit card companies will approve you based on your credit score. Your number will fit into a range which will decide what interest will be applied to your loan or credit.

People who have good credit do use payday loan lenders when trying to keep any new credit from interfering with an upcoming home mortgage or car loan. This good credit will have no significance to these short-term lenders. A short-term loan lender will not negatively affect your credit with hard inquiries nor will the company report your loan to the credit bureaus. It is simple fast money without long-term effects.

Most people have been made fully aware as to how their credit history can have an adverse effect on their finances. The fastest way to begin correcting a poor credit history is to make every present and future payment on time. Refrain from adding new debt while restructuring the budget to pay off all old debt. The credit bureaus have their own algorithms for figuring credit scores, but there are a few aspects which an individual does have control. Making on-time payments is a big factor and anther is keeping your debt below 30% of your available balance. Simple, right? If it was, there wouldn't be so many struggling with poor credit.

Like a course at school, you can do well for most of the year, have a failing grade and watch your grade fall fast. Your credit score is like your grade for managing your money. The credit bureaus want to see you using credit and paying it back. This is the only way they can grade you. Fail to pay back one of your creditors and your score will go down. When these financial failures are made, they will stay a part of your credit history for seven years. This is seven years of negative wearing down on all the good. You pay for your financial errors a long time.

When you have a good credit score you can reap additional rewards other than great interest rates. Some lenders may not make you pay a loan processing fee. Others may offer better terms and conditions to the loan. A payday loan lender will offer the same loan terms with the same rates to residents of the same state. Your income will help determine the amount loaned, but the terms and conditions will remain the same. Those with good credit may expect better treatment but short-term loans are different from beginning to end. Those with poor or no credit continue to appreciate the option being available.

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