Is it possible to get a loan from a financial institution when you have bad – even horrible – credit? It is. Though not from a traditional bank. A firm that specializes in payday advances will lend you money even if your credit rating is lower than 90% of the population. Why is this?
When consumers need or want a product or a service, the market creates said product or service. It is that simple. Firms that offer short term loans do so because there is a demand for them. It is not only those with a solid credit rating that need to borrow money occasionally. Those with a bad credit rating – and the associated financial problems that usually accompany such a rating – may need to borrow money more frequently than the general population. When there is a market demand for a service, the service is provided.
Cash advances yield profit
Firms that offer loans online do not do so because they want to help people. They do so because they want to make money. A payday loan will be offered at a higher rate of interest than a loan from a traditional financial institution. The client who has bad credit gets the funds she needs, and the financial institution is paid well for providing it to her.