Top Reasons Banks Don’t Make Bad Credit Loans

As a consumer you are aware of how important your credit score is when you are making a purchase, taking out a loan, applying for a credit card or any one of a dozen other things.  You are also aware that is very easy to go from a good credit score to a bad score in life through no fault of your own. Divorce, job loss, long term injury or illness, medical emergencies or even a natural disaster can put you in the position of trying to find bad credit loans.

When most people realize they have an emergency situation and cannot make their monthly budget their first thought is to go to their bank. However, these same people, many who have done business with the bank for years, quickly find out that their bank doesn’t make bad credit loans. The reasons why banks don’t provide bad credit loans, even for their established customers, has a lot to do with the difference between a personal loan and a payday loan.

Personal Loans

Personal loans by banks are typically for significant amounts that are paid out over several years. If you have a bad credit score then you are considered a high risk. Providing a lot of money to a customer that has a history in the credit report of late or skipped payments, defaults, bankruptcy or foreclosure is simply not in the banks best interest. Instead, you will find yourself denied for bad credit loans through your bank.

Payday Loans

Turning to bad credit loans in the form of payday loans is a lot more positive. These lenders only provide a small sum of cash, typically not more than $1000, which will automatically come out of your checking account with your next paycheck. These lenders have far less risk since they are providing smaller amounts of money over a very short period of time.

If you only need a few hundred dollars, have a steady job and make at least $1000 per month you will usually be approved for bad credit loans. These applications can be found online and, by working with top lenders, the money can be in your account in 24 hours or less, allowing you to more effectively deal with those emergency situations in life. To learn more visit us at

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