Payday loans in Chicago are a great alternative to a bank loan. Over the last decade, payday loans have increased in popularity because they are readily available at any time of day, the decision is instant and there is no credit check. Although the interest rates for payday loans in Chicago can be quite high, it is important to remember that these short term loans normally only last for 30 days, therefore the final cost would be much less than what a bank may charge. Aside from these loans offering convenience for both the lender and the borrower, there are ways in which it will affect credit history.
Start a Fresh Credit Score
Anyone who pays back their payday loans in Chicago on time will be able to benefit from a better credit score and the people who will benefit most from this is the people who are starting fresh. A poor credit score will not look good when you are applying for a mortgage or vehicle finance but payday loans act as a platform for rebuilding credit. The only way in which a short term loan would negatively affect credit score is if the borrower fails to stick to the payment schedule but because the loan can be extended; there is no reason why this should happen.
Low Interest Rates
The better your credit score the lower your interest rates will be when applying for other forms of credit. If you regularly pay back the company offering payday loans in Chicago, they will begin to trust you and you will then be able to loan money for longer. In addition to this, you will qualify for better interest rates when you take out new credit cards and finance. This will enable you to steer clear of debt and build up a steady financial future for you and your family.
More Opportunity for Rental Houses and Apartments
If your credit score is below average, it is highly unlikely that you will be approved for rental houses and apartments because the landlord needs to rely on a tenant to pay them on time each month. Despite this, when you get payday loans in Chicago you can increase your credit score day by day. This will not only open up a world of opportunities when trying to find a new place to live but also, you will have more choice when it comes to applying for car insurance and cell phone contracts. Your negotiating power will also improve, so lenders will take you more seriously when you try to get a good deal in the future.
