Payday Loans: Debunking Credit Score Myths

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Most online cash advance lenders will deposit the money by the next business day. The sooner your application can be sent in during the work day, the better chance of having the approval needed to guarantee cash in your account for the following business day.

It sounds logical but it's not. Determining credit worthiness comes from a consumer having a lot of "open to buy" (unused credit limits). In other words, the more a person can spend but chooses not to, makes them a better credit risk. There are some who say that utilizing less than 30% of your credit available is what will keep you score high, but the reality is that keeping your utilization as low is possible is always the most ideal for you score. In fact, it is always best to keep your credit card balances at $0. Installment loans are different. Payday loan lenders typically do not report to credit bureaus so a borrower doesn't need to worry about their balance affecting their score.

Student loans are one of the first types of credit available to many young adults. These loans are considered installment loans similar to auto loans and home mortgages. Installment loans show great budgeting skills when a set payment can be made over many years. Besides credit cards opportunities, student loans are one of the first steps into financial matters.

Also, larger financial institutions look at the credit history of a loan applicant and consider their ability to pay the loan back in the long term. Many people today simply cannot pass that type of scrutiny, so they would never be approved for a personal loan offered from a big bank or other large financial institution.

When a person applies for a conventional financial aid, they are much concerned about the credit history of the borrowers to give money. This condition makes it a very time consuming exercise which defeats the purpose of getting quick money. Such criteria has been removed from these financial schemes which do not take care about the problems of bad credit ratings like late payments, defaults, arrears, bankruptcies, insolvencies, CCJs, debt consolidation etc while processing these applications of cash benefits. This makes the transfer within no time. The process of placing any collateral against the cash amount is also not required by the lenders. People like tenants, students etc can enjoy risk free cash benefits under such plans.