What should you do if you want to build your credit but you can't get a credit card or loan from a bank? If you have a job or a regular source of money coming in, like alimony or child support, and you can afford to pay back an installment loan, you can get a cash advance.
A cash advance, also known as a payday loan, is a great way to build your credit if you can pay back the amount you borrow responsibly. Here is how it works.
You can easily apply for payday loan online, filling out a secured application. When you fill out the application you put in your personal information and your banking information, and you get a response quickly if you are approved. Once you accept the terms of the loan, your loan is processed and the money goes into your account. Start by borrowing a small amount that you know you can pay back.
Pay on Time
If you choose to pay the loan back after one or two paydays, make sure you do so on time. The installment loan is going to show up on your credit report, and then your report will show that you paid the installment loan off successfully. This is going to improve your credit, because it shows you can manage debt.
Borrow Again but More
Borrow again if you need a loan again, but this time apply to take out a little more. If you paid the first one back without problems, it shouldn't be difficult to get approved for more money. Again, pay the loan back on the set dates, and establish your credit history.
Avoid High Interest & Fees
Many states now have regulations on what amount of interest a payday loan company can charge. If you pay on time, or early, you can avoid extra interest costs and late fees.
It's important to research different payday loan lenders like Payday Advance, then only choose one to apply with. If you apply for several, this is going to bring your credit score down. Instead, get the money you need, pay it off, and show lenders that you can be a responsible borrower. You don't need to have great credit or a credit history to get a payday loan, which is why they are a great way to start gaining the credit that you need to someday buy a car, get a credit card and more.