Why is Less-Than-Perfect Credit OK^¶ with Payday Loans?

If you have less-than-perfect credit,^¶ much of the world of loans and credit cards is closed to you. But with payday loans and DollarsDirect, you can get payday loans even with less-than-perfect credit.^¶ Why does it work this way? In short, millions of people lack perfect credit. Payday loans may be their only option – but it’s an option that works. With a quick infusion of cash, a borrower can work out their money problems by paying bills or buying something at an “opportunity price” (i.e., when it is on sale or before the price increases).

Payday loans are perfect for the person who may have a few shortfalls in his or her credit record but who strives to do better. Here are some ways in which payday loans make sense for both borrower and lender:

• Respect for the working person – The lender believes in the person who goes to work every day. This is a person who is committed to goals, to getting the job done. The working person also has a predictable cash flow, with a paycheque due in a matter or days or weeks, which enables him or her to pay off the loan on time.
• Collateral cannot be valued fast enough – Some loans are based on collateral, such as a home or car title. But there is a delay in the time it takes to get the value on your collateral. The additional danger is that a default on this type of loan has a severe consequence, the loss of that item. How do you get to work without an automobile?
• Loan size kept manageable – A similar criticism can be made about car and home title loans in that the size of those loans can be substantial. All well and good if you truly need that much money. The benefit of a payday loan is that the loan size is kept to a manageable level, not so large that paying it off would be too difficult.

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