Suppose a person has a bad bank credit history.  Will any lender – creditor come to his assistance when the person needs a Payday Advance?  The answer is yes.  There are many financial institutions that accept applications from such individuals. These institutions study the application without a credit check.  Can they afford this approach?  How do they view Bad Credit applications?

Let’s imagine two people, Abe and Alison.  Let both of them borrow $100 from a lender – creditor that charges $10 per $100.  [Usually financial institutions charge at least $10 to $20 per $100].  Abe has no Bad Credit experience, as reflected in his bank statements and other relevant documents.  Alison couldn’t repay a previous loan and has a Bad Credit history.

How much will the lender charge them, say, by the ensuing payday?  $110 from Abe and $125 from Alison.  That is, the interest accrued on the amount lent to Abe and Alison would be $10 and $25.   In other words, though both borrowed the same amount, Alison repays a higher amount.

If for any reason, the repayment is not done on the due date, steps are taken to get back the entire advance amount [principal plus interest fee] from the customer.  And next time the borrower approaches the lender, the latter will probably say, “Sorry, no credit from you, hence no credit from us.”  Hence it is always better to keep your credit history clean, as this is the best approach for most economic payday borrowing during an emergency.

Here is my opinion on loans. It is not the opinion of whom we call “expert financial advisers” or “debt consultants” but for many, it is an opinion of the simple truth. The truth about loans is that you should not need one. If you do need a loan, you are not on the right path in life. Debt is not a good feeling. People get loans in desperation or greed or lack of sensibility. If you cannot afford something that you feel you need or want, then you should not want those things, you should want more money. However, you should not want to borrow money, you should be concentrating on how you make that money for yourself.

Now, many will agree there are a very few loans that are actually worth getting. For instance, student loans are actually going towards a very productive, positive, worthwhile cause. It is true that over 50% of student loans end up being wasted by the student instead of being used to better educate themselves. But the ones that do use a student loan to ultimately get what they want in life are the ones that deserve the loan and can handle the debt. An example of a horrible loan to get is a payday loan. If you cannot support yourself between paychecks and cannot save up enough money to use for emergencies, than you should not be getting a loan. Instead of getting a loan you should be concentrating on making more money, and let your “injustices” or “sufferings” propel you towards a better income and financial stability.

If you work for, own or otherwise are affiliated with a bank or other type of financial institute that makes their money off of interest paid to them by people borrowing money, than please let me give you some praise. About 1% of the population makes roughly 96% of all the money. This is no accident either. Parts of that 1% are financial institutes that I have mentioned and slightly demeaned. Just give yourself a pat on the back, you made so much money that you are now able to make even more money by lending all the money you made to people who lack the mind set to create wealth on their own.

Money makes the world go around, the question is; who’s going to make the money?

Both of your fortunes and misfortunes in life were created, manifested and overcome by you.