Direct Payday Loan Lenders Say “Yes” To High-Risk Credit Scores

Did you know that more than 61 million American consumers have a “subprime” credit score? A high-risk FICO score is one that is below 640 according to the three major credit reporting agencies. Having a less than perfect (or even decent) credit score can be due to a number of reasons: job loss, health problems, divorce, or poor financial management. For many people it is the last of them and is the direct result of over-borrowing and stretching one’s budget.

Direct payday loan lenders understand that for whatever reason a person has high-risk credit, we all make mistakes. They also know that bad credit comes at a price that can mean paying higher interest rates on credit cards, mortgages, and auto loans, as well as being denied credit and even lost job opportunities. This is why they don’t look at a person’s credit score when they apply for a payday advance loan. Getting a short-term loan for a cash emergency is fine and won’t hurt your credit, but you still need to consider how you’ll rebuild your credit score and get out of subprime for more financial loan opportunities. in the future.

The first step is to find out where you stand on your FICO Score. You can do this by requesting a copy of your credit score from the three main credit bureaus: Transunion, Experian, and Equifax. Every American consumer is entitled to a free copy of their report each year. You can request your report online or by calling directly. Unfortunately, you will have to pay to get your FICO score with your report, but it is worth it because it is what defines your credit worthiness. All three reports can vary by bureau and will change over time as your credit history changes. Once you receive all three, please review them individually to verify what was reported and to make sure everything is correct. Errors on your reports can be costly and affect your future credit, so it is vital that you verify that everything is correct. If you find something that you think is inaccurate, it is important that you immediately discuss it with that particular office. A form should come with your report that allows you to do so.

Assuming your credit score needs help, it’s important that you take steps to rebuild your score and correct any errors found on your report. It’s not going to happen overnight, in fact it could take months or years, but be patient and remember that you are ready to secure your future credit worthiness. While canceling your payday loan won’t increase your score, it will prevent you from paying more in interest and fees, as well as freeing you up to start paying off any other high-interest loans or credit cards. Once you start doing this, your credit score will be boosted. Keep in mind that while payday lenders don’t manage your credit and don’t report you when you’re paying it off, if your loan goes into default, an outside debt collector can take over your account, which means there is a possibility of to report it. to the credit bureaus. Call your lender immediately if you cannot make your payment.

In the meantime, keep checking your credit report (s) to make sure your efforts are reflected in your score. If you see something that is not accurate, be sure to report it. Not only do you want to pay attention to errors related to the debts that you have incurred, but you also want to make sure that you are not a victim of identity theft or fraud.