Payday loan lenders online will be quick to help fast cash needs even with the worst credit backing you. Since there is no credit check done in the approval process, your credit will not prevent you from receiving money from a payday loan lender.
If you are tired of paying the fees for using the payday loan lender, then you have two choices: build a savings account or work at fixing your credit score.
A savings account takes dedication. It is a constant focus to cut back spending and work at increasing the amount saved. Some people do not want to change their lifestyle and a savings account has no meaning. It will never happen on its own. With so many people living paycheck to paycheck, it is no wonder that there are not more active savings accounts. This does not mean those accounts where money gets put in in order to use it the following week, but one that builds as a protection for future financial difficulties. Many people who have a savings find that payday loan online have no relevance in their life. It is a much cheaper way to help with emergency costs. Don't forget to pay it back. Just because it is your money, you still want to pay it back to keep your savings account a growing account.
The other option is to build your credit score in order to keep payday loan lenders at the bottom of the list of available money options. People with poor or little credit tend to have these lenders at the top of their list since most others will decline an application due to their poor credit score.
Some of the best things you can do to help your credit score are quite simple.
*Don't max out your credit cards. The credit bureaus like to see less than 30% of your available balance used up at one time. If you have more than 30% debt on your cards, work at paying them down to improve your credit score.
*If you don't make your payments on time, you are asking for creditors to deny you. Late payments are reported on your credit history. New creditors will think twice before offering you new or extending credit. Payday loan lenders become a person's go to for cash since they do not use credit scores to approve applications.
*Each time you apply for new credit, your score gets knocked down a a point or two. This remains on your credit for up to two years. Creditors will be leery of giving you credit when they see how often you have applied in the recent past.
*Letting old credit sit unused goes against you. Think about rotating your credit cards each month in order to spend something, even if it is only a few dollars and you pay it off at the end of the month, it is better than letting it sit and get lost.
*Refrain from closing old accounts. Closing accounts will raise your credit utilization ratio which will lower your credit score. Pay the accounts down or totally off and then put them in the rotation for occasional usage.
In the meantime, know that a direct payday loan lender will still be there for back up with no reflection on your credit. Don't let your loan go into to default. Once the debt is sold to collections. your credit will then be negatively affected.