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Maintaining Good Credit with Instant Payday Loans

When a consumer decides to purchase something on credit today, they can essentially take the item home without paying for it until a full month after the original purchase date. However, the consumer does agree to make installment payments to the lender on a certain deadline to pay for the item. When the consumer is late on their payments, or misses a few installments entirely, the lender will often declare that consumer to be in default of the loan agreement. This is a very unfortunate circumstance for the consumer, because the lender may raise their interest rates and charge additional fees to their account at this time. As an additional effect of defaulting on a loan or line of credit, the consumer’s credit score will drop dramatically to reflect their inability to pay off their debt obligations. Without a great credit score, the consumer will not be able to acquire a mortgage agreement, student loans, or an auto loan in the near future!

Instant Payday Loans

Frank, July 22, 2011 - coins
Creative Commons License photo credit: pat00139

However, if the consumer applies for instant payday loans, rather than missing their various bill payments, they will be able to retain their good credit rating until they are able to get back on their feet. This is an important step for those consumers that are thinking about filing for debt consolidation or other debt negotiation services in the future, for if the lender sees that the consumer has done all that they can to meet their payments, they will be more likely to discount the consumer’s total debt by a significant amount. Therefore, consumers that are in severe financial hardship should always closely monitor their account balances in order to plan out their future payments. This is not only a great way for the consumer to plan for their current financial payments, but will also allow them to maintain financial responsibility throughout their entire lives.

Importance Of A Strict Budget

Although having a strict budget for paying off each debt obligation on time can be extremely helpful for consumers, there will still be no way for the consumer to account for unexpected expenses. This is why it is so incredibly important for consumers to set aside a small percentage of each paycheck that they receive, as there will always be unforeseen costs that they will need to attend to in a timely manner. However, if a consumer is already over their head financially, they will likely not have any savings to speak of! Thankfully, with instant payday loans, a consumer can literally make their next payday come early.

Repay Quickly

Instant payday loans will give consumers a cash advance on their next paycheck in the regular amount that they receive from their employer. These loans are temporary and must be repaid in full within one week after the consumer receives their actual paycheck from their employer. By applying for instant payday loans, the consumer will be able to cover the unexpected costs incurred by an emergency surgery or a broken down vehicle. When the consumer uses this short term loan to pay for unexpected costs, or a few bills that they simply did not budget for, they will be able to retain their credit rating for a few more weeks.

Debt Consolidation

Then, in order to better organize their debts and discount the total amount owed, the consumer can apply for debt consolidation through a debt negotiation firm or credit counseling agency. However, in order to be approved for these consolidation services, the consumer will need to prove that they had already done all that is in their power to control their debts and make their payments on time. These discount services are only available to consumers that have already explored other avenues and are still unable to manage their debt obligations on their own.