One Guy’s Story
Two years ago I was in a position that no one would have envied. I had bad credit and needed an auto loan back then.
My work was in a city next to mine and I have to travel from where I live for two hours. That’s why getting my own car certainly made a lot of sense for me. It would make my travelling to and from work a lot more comfortable. There was just one major problem for me. I couldn’t afford buying my own car. My salary wasn’t big enough.
If I wanted to get my own car, I would have to get a loan for it, but my credit was such in a bad condition that it would have been a total waste of my time to even try and apply with a bank. With the kind of credit that I had, they wouldn’t have trusted me with a dollar. That was when I learned about an option that was open for someone like me. There are payday loans that can be taken out even by people like me who have bad credit and need an auto loan.
Loans for People with Bad Credit
That was the first time that I learned about that sort of loan. I really thought that my case was hopeless and that I would just have to resort to finding someone who could lend me the money on a personal level, which was something I doubt if I could have done.
What To Do if You Can’t Repay It When It’s Due
These loans can be taken out by people who are employed for a certain period. The period varies, but it usually is very short. As the name suggest, this loan is based on the payday of the borrower. You can borrow an amount that you would have to pay back on his next payday together with the fee which would be the interest. You can have that extended if you are unable to meet the obligation on the scheduled date. That is exactly what I did. I took out a loan but I had to extend it because I couldn’t pay for it right away.
I discovered the downside of this kind of loan in the hard way. I was forced to extend it for a couple of times until I found myself owing a lot more than what I actually used up. The interest rate for this loan if it was computed annually could multiply several times the total amount that you owe.
Then there is the fact that the amount that you could get from it is actually limited. I did get some money, but the money that I got was not enough for me to buy the car that I needed. I still had to find some other means to get additional money after that. It was a start though. If you need a relatively large sum of money, then you might have to look at other options because this is not the resource to answer your prayers.
As you can see, there are downsides to this form of financial loan as well.