How to Make Money Online: The Ultimate Resale Guide

Cut the clutter in your closets and turn it into cold, hard cash. Selling your stuff online is easier than you think if you know what you’re doing.

If you’re like most people, your house is probably full of things you could stand to get rid of. Be it old clothes from your clubbing days, vintage furniture you inherited from grandma, or a box of old electronics retired in favor of the hottest new gadgets, it’s safe to say there’s something in your life that would be better off cluttering up someone else’s space.

Luckily, this world is a vast and varied tapestry. If you’ve got junk, you can rest assured there’s someone out there who’s looking to buy it. And in the age of the internet, it’s never been easier to find that special someone who’s just dying to add your random assortment of ’90s Pokemon cards to their collection. If you’re in the market for some fast cash, don’t take out a predatory payday loan. Instead, you should try and sell some of your unused stuff!

Before you start the process of snapping pics and posting your things online, it’s important to know that not all eCommerce sites are created equal. In order to find the right buyer, you’ve gotta list your stuff on the right site. Here are five popular places to sell your stuff, and what kinds of things sell best on each.


Craigslist

The classifieds of the internet, you can find jobs, apartments, and even strangers you locked eyes with on the bus on Craigslist. And while its basic user interface is a little archaic, it’s pretty simple to use.

What should you list on Craigslist? Craigslist is best for selling gently-used household stuff like furniture, cookware, dishes, and (working) electronics.

How much does it cost? Listing items for sale on Craigslist is free.

How can you boost your sales potential? Before you list an item, do your research. If you’re selling an old dining room table, for example, do a scroll through the dining room tables currently available on Craigslist and see what a comparable table is going for. Remember, Craigslist is the online equivalent of a flea market, so any price you choose is fair game for haggling. Set it slightly above what you actually want to sell it for, but not so high that no one will bite. Make sure you pair that price with some quality photos (some pictures that are well-lit, from several different angles, not blurry, and which generally don’t have a murder house vibe will set you ahead of the crowd), and you’re good to go!

eBay

The mother of all eCommerce sites, eBay is part online auction, part retail operation, and probably the first thing you think of when you think of shopping on the web.

What should you list on eBay? eBay is best for novelty items, antiques, collectibles—basically anything that buyers won’t be able to find anywhere else. Additionally, if you have some like-new designer duds, like clothes, shoes or purses, newish electronics that are in good working condition, or popular toys that are still in the box, you can probably fetch a pretty penny

How much does it cost? It depends on what you’re selling, and how much you’re selling it for, but eBay does take a (very small) percentage of your sale. To find out how much it will be for what you’re listing, click here.

How can you boost your sales potential? Again, your first step before listing anything for sale online should be researching what similar items are going for on that site. With eBay, this is especially important, as you’ll need to select the right categories to put your item in. If you don’t, it will be a lot more difficult for casual shoppers (aka people who aren’t searching for your exact item) to stumble across your listing. Before you list anything on eBay, take a look at the site’s tips for successful selling, the rules for sellers, and the official seller’s checklist.

Etsy

Etsy is a place for artists, crafters, and vintage enthusiasts to buy and sell unique, ultra-hip wares.

What should you list on Etsy? In general, Etsy is best for selling handmade crafts, jewelry, art, accessories, fashion, and home goods. While many people do list vintage items on Etsy, they’re usually either repurposed in some way or listed in a way that plays up their trendy antique nature.

How much does it cost? Listing on Etsy costs $0.20 an item, and Etsy will pocket 3.5 percent of every sale. Plan accordingly when you set your prices.

How can you boost your sales potential? When it comes to posting something for sale on Etsy, good photography is your friend. While you can get away with mediocre pictures on Craigslist and eBay, Etsy shoppers are a whole different crowd. Take a look at how other sellers are presenting their inventory and try to emulate their style. Product photos on Etsy are typically Instagram-ready—well-shot, well-lit, perfectly posed, and generally adorable. Play around with filters and style your pictures for maximum “awww” factor.

Facebook Marketplace

The social network is good for more than just convincing your ex through constant smiling selfies that you’re better off without them. For years, Facebook has experimented with a classifieds section on its desktop and mobile app, and after retiring it for a while it’s back!

What should you list on Facebook? People use Facebook Marketplace to sell everything from apartments to bookshelves, but the majority of Facebook Marketplace posts are for furniture.

How much does it cost? Listing on Facebook Marketplace is free!

How can you boost your sales potential? Post quality photos, helpful descriptions, and whether or not you’re willing to deliver. Potential buyers can send you a message through the marketplace that will show up in your messenger app.

Clothing Resale Apps: Poshmark, Depop, ThreadUp, and Tradesy

If old or unworn clothing is the main source of your clutter, there’s an app for that. In fact, there are several apps that can help you buy and sell gently-used clothes and accessories, and if you do it right, you could really clean up. As there are literally hundreds of different clothing resale apps out there, we decided to focus on four of the most well-known:

What should you list on these apps? Well, clothes, of course! Gently-used or never worn sell best, but if you’ve got some good vintage goods that are suddenly back in style, definitely post those too. Designer duds are the most popular, especially if you list them at a reasonable price.

How much does it cost? Let’s break it down by app, shall we?

  • Poshmark: For all sales under $15, Poshmark takes a flat commission of $2.95. For sales of $15 or more, they take a 20 percent commission.
  • Depop: Depop charges a 10 percent fee on the total transaction amount—including shipping costs.
  • Tradesy: For sales under $50, Tradesy charges a flat commission rate of $7.50. For sales of $50 or more, they take a 19.8 percent commission.
  • ThredUp: ThreadUp is a little bit different than these other apps. Instead of listing your clothes yourself, you’ll request a “Clean Out Bag,” fill it with your clothes, and then send it back to them. They’ll sell what they can, give you a cut of the profits, and donate the rest. If you want to have clothes they can’t sell returned to you, you’ll have to pay a $10.99 fee per bag.

How can you boost your sales potential? These apps are ALL about style. Photo quality matters, as does photo styling. Look at what other people are doing and fit your pictures to that style. If most people are posting selfies wearing their clothes, do that. If they’re arranging their items neatly on a white background, do that.

Selling your stuff online requires some grit and determination if you’re going to make money, but it’s a much better way to get extra cash than taking out a sketchy no credit check loan or cash advance. To learn more about increasing your income, check out these related posts and articles from OppLoans:

What are your best tips for selling stuff online? We want to hear from you! Let us know on Facebook and Twitter

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If You Have Bad Credit, Can You Qualify for a Debt Consolidation Loan?

If you want to consolidate your debt but you have a lousy credit score, you’re going to run into the same problems as you would trying to apply for any other loan.

Bad credit is like the worst kind of slope: a slippery one. Once you miss some payments, your credit score will start dropping and the fees and interest on that debt will keep growing.

So now you have more debt and a lower credit score which will make getting a personal loan harder. One way to help manage your debt is to take out a debt consolidation loan, where you get one big loan to pay off all your smaller ones. Then you only have one payment to make every month! And hopefully at a lower interest rate than you were paying previously!

But if you already have a poor credit score, is debt consolidation really a possibility for you? Read on and find out!


Payment history and amounts owed are the two most important parts of your score.

Before we continue, let’s make sure we’re all on the same page. Your history as a borrower is collected into documents called credit reports by the three major credit bureaus: Experian, TransUnion, and Equifax. That information is then fed through an algorithm created by the FICO corporation to create your credit score, a three-digit number that expresses your perceived trustworthiness as a borrower. Potential lenders use these scores to help determine whether they’ll lend to you and at what rates.

Your credit score is composed of five categories. The most important category, worth 35 percent of your total score, is your payment history. This is a measure of whether you’ve been paying your bills and paying them on time. When it comes to whether you’re likely to pay off your debts in the future, it’s not surprising that lenders will want to know whether you’ve paid your debts in the past.

The next factor, worth only a little less at 30 percent, is your amounts owed. This is, as the name suggests, the amount you currently owe to your various lenders. If you already have a lot of debt to manage, it stands to reason that you’ll have a tougher time managing new debt. In general, you’ll want to keep any credit card balances below 30 percent of your total credit limit to help this section of your score.

If you think you have a good credit score because you’ve never been in debt, you’re wrong. 

The last three factors are each less important on their own, but together they account for a little over a third of your credit score, as the math would suggest.

The length of your credit history is worth 15 percent. This is where some people can get hung up because they think having never gotten into debt in the first place will lead to a good credit score. That’s not the case. FICO’s algorithm does not look too kindly on people who’ve never borrowed money before because, well, they’ve never borrowed money before! The algorithm isn’t sure how they would handle it!

That’s why, even if you don’t qualify for a regular credit card, you should consider getting a secured credit card. This is a card that’s easier to qualify for but which requires you to put down cash as collateral. That way, you can start building up your credit by using the credit card and paying the bill in full each month. But you don’t want to use it too much since the next 10 percent is …

Your credit mix! This takes into account how your credit obligations are divided. Lenders want to see as diverse a mix as possible. So if all your debts are on credit cards or in the form of personal loans, you’ll get dinged for that.

Finally, the last 10 percent is recent credit inquiries. Hard credit checks, performed by most standard financial companies when you’re seeking a loan, will cause a temporary negative effect on your credit score. The effect isn’t huge and will only last a maximum of two years, but when you have bad credit, every little bit counts.

What is a debt consolidation loan, exactly?

Speaking of applying for a loan, just what is a debt consolidation loan? Basically, it’s a loan you take out for the express purpose of paying off the debts you want to consolidate. You take out the new loan, and then use those funds to pay your old debts off. There are certain loans that are advertised specifically as debt consolidation loans, and you include the other balances that you want to pay off as a part of the loan process.

Ideally, this new loan will have lower rates than the original loan or lower monthly payments. Or super duper ideally, both. Oftentimes, though, you’ll be asked to choose between the lower monthly payments and paying more in interest overall—even with lower rates. A longer term on a loan means lower payments, while a shorter term means less interest will accrue. In choosing between the two, it’s really about what’s right for you.

If you’re applying for a debt consolidation loan that has a higher interest rate than your current debts or monthly payments that you can’t afford, then you shouldn’t take out that loan. While simplifying your debts is a good thing—allowing you to make one payment each month instead of many—paying more money in order to do that is not.

So can you get a debt consolidation loan with bad credit? And should you?

Folks with bad credit will run into the same issues with a debt consolidation loan that they will with regular loans.

Getting a debt consolidation loan with bad credit is like getting any other loan with bad credit: less than ideal. Traditional lenders likely won’t lend to you at all, and the ones that will are going to charge you much higher interest rates. The rates might be so high that the loan isn’t even worth it. Loans or credit cards that were taken out before you had a bad credit score might have better rates than anything you’re able to qualify for right now.

You’ll also want to be very careful with any lender that does want to lend to you when you have bad credit. While there are many bad credit lenders out there that are totally legit, there are many others whose predatory products will trap you in a cycle of debt. Trying to consolidate your debt with one of these lenders could leave you in a worse situation than you were in before the consolidation.

Then again, even the higher rates from one bad credit loan might be far better than what you’re paying on your other bad credit debt. For instance, if you have multiple payday loans outstanding that you are struggling to pay, consolidating all of those loans into a single bad credit installment loan with longer terms and lower payments might just be the ticket to stabilizing your finances.

The solution to choosing the right bad credit debt consolidation loan is simple: Do your research. Make sure you compare different loans using their APR, or annual percentage rate, to determine which one is most affordable, and make sure to read all of the fine print before signing anything. Check the monthly payment amounts against your budget and see whether or not you’ll be able to afford them. Online reviews can also help you determine which lender is the right choice for you.

In a best-case scenario, you’ll find a debt consolidation loan with better terms that will report your payments to the credit bureaus. Then, not only will you be handling your debt, you’ll be building your credit score back up as well!

Having a bad credit score is always going to be tougher than having a good one. But it might still be worth looking into a debt consolidation loan. As long as you don’t have to agree to any hard credit checks, there isn’t a downside to exploring your options.

To learn more about getting out of debt, check out these related posts and articles from OppLoans:

What do you think is the best strategy for getting out of debt? Let us know on Facebook and Twitter.

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Make Sure Your Bad Credit Loan Has Payments You Can Afford

bad-credit-payments-you-can-afford

Short-term loans that require lump-sum repayment are very difficult for most people to repay on time, trapping them in a predatory cycle of debt.

There’s no perfect solution for borrowing money. No matter what decision you make, every single loan or credit card you take out is going to have downsides—or at least some manner of risk. Even borrowing money from friends and family isn’t a perfect solution. The dangers might be more social than financial, but failing to pay that money back could still get you in big trouble.

When you’re borrowing money and you have bad credit, however, those solutions get even less perfect. Personal loans and credit cards get more expensive and the risks become greater. Lots of bad credit loans out there could even trap you in a predatory cycle of debt. A poor credit score gives you fewer lending options, which means certain lenders can and will take advantage of you.

It’s a bit difficult to boil down any lending decision to a single factor, but with bad credit loans (and any loan, really) there is one element that stands head and shoulders above the rest. If you’re going to take out a bad credit loan, make sure that it has payments you can actually afford. If you take care of that, most everything else should fall into place.


What is a bad credit loan?

In basic terms, bad credit loans are the types of loans available to people with poor credit. While there is no exact definition of a “bad” credit score, it’s safe to say that any score under 630 qualifies as subprime or poor credit. People with scores in this range will not be able to take out personal loans from traditional lenders, as they are seen to be far too risky.

Bad credit loans have much higher interest rates than traditional loans. This is because borrowers with poor credit scores default at a higher rate than borrowers with high scores. (Your credit score essentially sums up your reliability as a borrower, so this isn’t surprising.) Bad credit lenders have to charge higher rates because they need to account for all the loans they issue that won’t get paid back.

Still, that reality does not excuse the absolutely astronomical rates that some of these lenders charge. And by designing their loans to be paid back all at one time, many bad credit lenders make their products even more difficult to repay.

What are the different types of bad credit loans?

There are four main types of bad credit loans: payday loans, title loans, pawn shop loans, and installment loans. The first three are all “no credit check loans,” which mean that they do not check a customer’s score before lending to them. Some installment lenders also do not perform a credit check, but many others perform a “soft” credit check. These checks do not return as much information as a “hard” check, but they also don’t affect your credit score.

Payday loans are short-term small-dollar loans with an average repayment term of only two weeks—in theory, they are designed to tide the borrower over until their next paycheck, hence the name. While the rates for payday loans seem reasonable, they add up to an average APR that’s well over 300 percent. For instance, a 15 percent interest charge for a two-week payday loan translates to an APR of 391 percent. Payday loans are designed to be paid off in a single lump sum, and are sometimes referred to as payday “cash advances.”

Title loans have a typical repayment term of one month and an average APR of 300 percent. Unlike payday loans, which don’t require any collateral, title loans are secured by the title to the borrower’s car or truck. Despite only giving borrowers a fraction of the value of their car, title loans usually have higher loan amounts than payday loans. If a customer cannot pay back their title loan, the lender can repossess the vehicle and sell it to cover their losses.

Pawn shop loans are another type of secured bad credit loan. For collateral, they use a person’s valuables, stuff like jewelry and electronics. Pawn shop laws vary widely from state-to-state, but the standard term for a pawn shop loan is one month. The APRs for these loans can vary anywhere between 15 and 240 percent. Like title loans, failing to pay back a pawnshop loan means forfeiting your collateral.

Installment loans are structured more like traditional personal loans. Instead of being paid off all at once like payday, title, and pawn shop loans, installment loans are paid off in a series of regular payments. The rates for installment loans are oftentimes lower than payday loans, though this varies from lender to lender. Many installment loans are amortizing, which ensures that every payment goes towards paying off both the interest and the principal.

Lump-sum repayment makes many bad credit loan payments unaffordable.

Here’s a thought experiment: If you took out a $400 payday loan, and two-weeks later you had to pay back $500. Would you be able to afford that? Even with an upcoming paycheck to draw from, coming up with that much money at once would be difficult. And if you could make that payment, there is a good chance that it would dramatically impact the rest of your budget. The hole it makes might be so big that you end up having to take out another payday loan to cover your bills.

Unfortunately, this isn’t a thought experiment for millions of Americans. It’s a reality. According to a study from The Pew Charitable Trusts, only 14 percent of payday loan borrowers have enough money in their monthly budgets to afford their loans. This shortfall is partly due to the loans’ lump-sum repayment terms, which force borrowers to pay their loan off all at once.

The same can be said for title loans, but with even more dire consequences for borrowers who cannot repay. In many states, payday and title lenders are allowed to roll over their customers’ loans, which means that they charge the borrower additional interest to extend the loan’s due date. Borrowers usually have to pay the interest already owed on the loan, but that payment doesn’t actually reduce the total amount that they owe. Others pay their loan off and then immediately take out a new loan to pay for necessary expenses.

An installment loan is probably your best option.

This cycle of rolling over or reborrowing a loan quickly turns into an outright cycle of debt; consumers have just enough money to pay off the interest owed on the loan, but not enough to pay down the principal. By extending the due date over and over (or taking out new loans soon after they pay their old ones off), these victims of predatory lending find themselves trapped in a system that slowly sucks their bank account dry.

These people would be better off with a bad credit installment loan. Instead of being stuck paying only the interest on their loan, every payment they make would go towards principal and the interest. The more payments they make, the less money accrues towards the interest, which means that a larger and larger portion of each payment goes towards the principal. Also, with smaller payments made at regular intervals over a longer period of time, there is much better chance that those payments will fit into the borrower’s budget.

Of course, an installment loan with unaffordable payments isn’t a great idea either, so you should make sure to do your research before taking out any kind bad credit loan. Check out the customer reviews and the BBB page for any lender you’re considering, no matter if they’re a storefront lender or a website with online loans.

While an installment loan will likely be more affordable than a payday or title loan, it all comes down to what your budget will allow. Any loan that has payments beyond what you can manage is a one-way ticket to a cycle of debt or even bankruptcy.

To learn more about living with bad credit, check out these related posts and articles from OppLoans:

Have you ever found yourself trapped in a cycle of debt? We want to hear from you! You can email us or you can find us on Facebook and Twitter.

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How Does Going to Prison Affect Your Credit?

how-does-prison-affect-creditGetting sent to prison will make it very hard to repay any money that you owe, and that’s going to hurt your credit score.

There are a lot of people in prison in America. In fact, our country has a higher prison population and higher incarceration rates than anywhere else in the world. And while there’s clearly a lot of work that needs to be done to bring down incarceration rates, a lot of that is a bit outside our wheelhouse. We’re more focused on helping your personal financial situation right now.

That’s why we’re here to answer a question you may, unfortunately, have wondered about: How will going to jail affect your credit score?


How do credit scores work, again?

First, let’s just go over what a credit score is and how it works.

Your credit score is a three-digit number produced from information on your credit report. You actually have three credit reports, each from one of the three major credit bureaus, Equifax, Experian, and TransUnion. Your score will differ depending on which credit report is used to create it.

The bureaus take information about your lending and credit use and create a three digit number that summarizes your reliability as a borrower. Potential lenders then use that score to determine how likely you are to pay back your loans on time.

Lenders and other creditors determine whether they will lend to you and at what rates based off this number. If the number is at 800 or above, you’ll get the (relatively) royal treatment, but if it’s below 700, you might start running into trouble. And if it’s below 630, then watch out.

In general, the most reliable way to get your credit score up is by using a credit card responsibly. That means using it regularly, but keeping it under one-third of your total credit limit and making sure to pay your bill in full every month. If you only pay the minimum each month, the interest will keep accumulating, and that debt will weigh down your credit score.

But all of this is day-to-day information for life on the outside. How will your credit be impacted by time behind bars?

Prison means no income to pay your debts

While a conviction and jail time may not directly destroy your credit score, all of the secondary effects are going to be an enormous weight.

“Criminal convictions and sentences are not automatically reported on a credit report (only a police report will include such information),” advised attorney Paul Mitassov. “Therefore, most credit score effects are indirect.”

Prison is also unsurprisingly bad for your job prospects in all sorts of ways, as Mitassov explained: “Being in jail will usually stop a person from being able to work and earn money. This will limit their ability to pay their existing obligations, which will be reflected poorly on a credit report. A criminal record will affect a person’s ability to find a job. Jail time will usually cause them to lose their previous job. Lacking a job (and the income it brings) will hurt your credit.”

Your assets can get seized as well. 

And it gets worse.

“Some or all of a person’s resources (money, vehicles, tools, etc) may be seized on arrest,” Mitassov warned. “These may not be returned for some time (or at all). The lack of such assets can prevent one from paying. Most accused will try to hire a lawyer as soon as possible. Criminal lawyers usually request large up-front retainers. This (presumably) unexpected expenditure can prevent a person from paying their other bills.”

Even keeping up with your regular payments could become impossible, as Mitassov told us: “Not all prisons have facilities for easy bill paying (i.e. easily accessible phones or computer terminals). Even if an inmate has the funds, he may find it difficult to arrange regular payments.”

So now that you’ve been warned, you know what to prepare for should you ever find yourself incarcerated.

But what comes after?

How to build your credit post-prison.

So prison is going to be hard on your credit (let alone every other aspect of your life) but how can you bring your score back up otherwise? It’s a lot like what you’d do otherwise but with a much higher level of difficulty.

“Pay off your outstanding obligations, or get them discharged via bankruptcy (bankruptcy is terrible for your credit rating, but at least it stems the bleeding),” suggested Mitassov concerning post-prison release to get your credit score back up. “Get a job. You need an income, to pay your obligations. Make sure to assume only manageable obligations, and make sure to pay on time. (i.e. to build up a good payment history).”

If there were debts you weren’t able to pay because of your incarceration, you can try getting in touch with the creditors and finding out if you can negotiate some sort of agreement.

In general, creditors would rather get some money than no money, and if you can get some of your debts settled or partially forgiven, you’ll already be on your way to better credit. If you can’t qualify for a traditional credit card after release, you can get a secured credit card, which requires you to put down some cash as collateral but can be a good way to build up your credit. Unlike no credit check loans, like payday loans or cash advances, most secured credit cards will report your payment activity to the bureaus.

It’s hard enough to maintain your credit score without going to jail, but with some dedication and a willingness to ask for help when you need it, you can put yourself on the path to credit redemption.

To learn more about credit scores, check out these related posts and articles from OppLoans:

What other questions do you have about credit scores? We want to hear from you! You can email us or you can find us on Facebook and Twitter.

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Contributors

Paul Mitassov graduated from the University of Toronto Faculty of Law in 2013. He also holds a Bachelor’s Degree in Mechanical Engineering from the University of Toronto. After working at a downtown law firm, he started his own practice in North York. As an engineer, Paul takes an analytical approach to every case, and has obtained results in various areas of law including civil litigation (including small claims), family law, wills and estates, corporate law, and criminal matters.  Paul’s dedication to perfection and transparency with his clients are the number one reason why most of our client’s come from prior client referrals. Paul speaks fluently in both Russian and English, and is a fully-licensed lawyer with the Law Society of Ontario.

Are Payday Loans and No Credit Check Loans the Same Thing?

payday-loans-no-credit-check-loans

Payday loans don’t require any kind of credit check, but they are one of the riskiest kinds of no credit check loans out there.

When you’re dealing with an emergency, it can be hard to pay attention to details. Your adrenaline is pumping, your nerves are shot, and a lot of the information you encounter just washes over you. Before you know it, you’ve been staring at the same form for 10 minutes, reading the same paragraph over and over, not retaining any of it.

If you don’t have an emergency fund to cover unforeseen expenses, this adrenaline-fueled brain fog could get you in trouble. Even though you think you know a lot about fast cash loans, you could easily end up in the clutches of a predatory lender, all because you didn’t understand the kind of loan you were signing up for.

For instance, you might have bad credit and need a loan that doesn’t do a credit check. You see an ad for payday loans online and you wonder if this is the kind of no credit check loan you should be applying for. What’s the difference between a payday loan and a no credit check loan, anyway? Are those just two names for the same thing? Don’t’ worry, that’s exactly what we’re here to fill you in on.


What is a no credit check loan?

It’s right there in the name: no credit check loans are products that don’t require a credit check with your loan application. Specifically, they do not require a hard credit check, wherein a lender requests a full copy of your credit report. Hard credit checks also get recorded on your credit report and can ding your score for up to two years.

Some no credit check lenders might still perform what’s called a “soft” credit check when you apply for a loan. Similar to a hard check, a soft credit check returns info about your borrowing history. Unlike a hard check, however, a soft check returns much less information and does not affect your score. Some lenders might also ask for proof of employment and/or copies of your bank statements to confirm that you draw a paycheck.

No credit check loans are a type of bad credit loan. These are products designed for people whose poor credit scores lock them out from traditional personal loans. Bad credit loans come with much higher interest rates than loans from regular lenders, but they also give critical access to credit for borrowers who otherwise wouldn’t have any access at all. Still, there are many no credit check loans that can be outright predatory, designed to trap borrowers in a constant cycle of debt.

What is a payday loan?

Payday loans are a type of small-dollar no credit check loan, which means that payday lenders do not check your credit when you apply for one of their loans. They are very short loans, with an average repayment term of only two weeks—the idea being that the loan will be repaid on the day the borrower receives their next paycheck. That’s where the name “payday loan” comes from.

The standard process for a payday loan looks like this:

A customer walks into a storefront and asks for a loan. The lender then either takes a postdated check from the customer for the amount borrowed plus interest or they sign the customer up for an automatic withdrawal on the loan’s due date. They then hand the customer cash and the customer walks out the door. Two weeks later, the payday lender deposits the check or withdraws the funds from the customer’s bank account.

While the cost of a payday loan varies from state to state, they have an average annual percentage rate (APR) of almost 400 percent. And while those high annual rates don’t matter so much if you pay your loan off on-time, many payday loan customers find that they have trouble doing just that.

Some payday lenders even allow borrowers to roll their loan over, extending the due date in return for paying additional interest. In other cases, payday loan customers will have to pay their loan off and then immediately take another out to cover additional expenses.

Loan rollover and reborrowing can easily turn into a predatory cycle of debt wherein the customer keeps paying more and more interest towards the loan without ever paying any of the principal amount they owe. That’s how a 15 percent interest-charge on a two-week payday loan can add up to an annual rate of 391 percent.

How are payday loans different from other no credit check loans?

There are many different types of no credit check loans, and payday loans are one of the most common types. Still, there are ways in which payday loans differ from other no credit check loans. Some of these differences make payday loans a better option, but many others make them one of the riskiest types of no credit check loans out there.

Payday loans generally have the shortest payment terms of any no credit check loan. Title loans, for instance, have an average term of one month. While the short terms for payday loans might seem convenient, that quick turnaround can make them extremely difficult to repay on-time. And while no credit check installment loans let you pay your loan off a little bit of a time, payday loans have to be paid off in one lump sum, which can add to the hardship.

You can’t borrow as much money with a payday loan as you can with other types of no credit check loans, which can be both a plus and a minus. Smaller amounts of money mean that a payday loan can’t be as helpful in an emergency, but it does mean that you’ll have to repay less money overall. Meanwhile, an installment loan with manageable payments lets you borrow more money overall while keeping your loan payments affordable.

Unlike payday loans, which have no collateral requirements, title loans are secured by the title to your car or truck—that’s how they got their name. Using your car as collateral means that you can usually borrow more with a title loan than you can with a payday loan, but it also means that your car can (and likely will) get repossessed if you can’t pay the loan back on-time. Say what you will about payday loans, you won’t lose your car if you default on one.

There are better options than a payday loan.

All in all, payday loans carry many risks, so many risks that you should avoid taking one out if at all possible. Putting money on your credit card is a better option than taking out a payday loan. even taking out a costly credit card cash advance will still leave you paying much lower interest rates.

Title loans should also be avoided, but a responsible bad credit installment loan (especially one that performs a soft credit check that won’t affect your credit) can be a great way to pay for emergency expenses. There are plenty of online loans out there that fit your needs—just make sure you do your research first! Do it now, so you’ll be prepared later on when you don’t have time think.

Not all no credit check loans are payday loans, but payday loans are certainly one of the riskiest types of no credit check loans you can find. To learn more about borrowing money with bad credit, check out these related posts and articles from OppLoans:

What has your experience been with payday loans? We want to hear from you! You can email us or you can find us on Facebook and Twitter.

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Yes, You Might Need a Credit Check to Rent a Car

credit-check-rent-a-car

Car rental companies see debit cards as a red flag and will likely check your credit before they rent to you.

If you have a bad credit score, there are tons of ways that you’ll feel its effects in your everyday life. It will mean higher interest rates on your loans and credit cards, which cuts into your monthly budget. It might also mean paying more for utilities or at least needing to put down a deposit in order to secure them. It can even mean getting turned down for an apartment or a new job.

In short, having bad credit sucks. Luckily, there are things that you can do to help your score improve, like paying down your debts and making sure you pay your bills on time. Additionally, you should avoid any unnecessary credit checks, as they can negatively affect your score for up to two years. The damage won’t be that huge—more of a dent than a smoking crater—but when your score is in the dumps, every little bit can help or hurt.

Avoiding credit inquiries means not applying for loans or credit cards unless you absolutely need them, but it can also mean avoiding other things as well—or at least approaching them more cautiously. One of those things is renting a car. Depending on your circumstances, renting a car might mean needing a credit check, which could lower your score. And the answer to avoiding that check might surprise you.


How do credit checks work?

When a business checks your credit, it’s because they want to see whether you are a trustworthy borrower. While renting a car is a little different than taking out a loan or a credit card, the same basic rules apply. If you have a history of paying your bills and your rent on time, you are very likely to also pay for your rental car without any issues.

There are two types of credit checks that can be run: hard checks and soft checks. A hard credit check pulls a full copy of your credit report from one of the three major credit bureaus (TransUnion, Experian, and Equifax). Hard checks are also recorded on your report and will usually ding your score temporarily. In order for a hard check to be run, a company must have your express permission.

Soft credit checks, on the other hand, do not need your permission in order to be run. This is because soft checks return far less information than hard checks. And while soft checks can be recorded on your credit report, they do not affect your score. If you’ve ever received a “pre-approved” offer in the mail, that lender performed a soft check on your credit history.

With car rentals, they will perform a hard check on your credit. If you want to read more about the difference between soft and hard checks, check out our blog post: How are Soft Credit Checks Different From Hard Checks?

Renting a car with a debit card could mean a credit check.

On this blog, we write a great deal of personal finance advice. And one thing we consistently tell folks who lack good money habits is to avoid using their credit cards as much as possible. Credit cards with a good points or rewards plan can be a great financial tool if used properly, but the temptation to use them improperly and rack up a bunch of debt is too strong for many people.

So it feels a bit odd to say this but here we go: If you’re renting a car, you should do it with a credit card instead of a debit card. It’s only when customers are using a debit card that companies are going to (often, but not always) insist on running a credit check.

Debit cards mean additional risk for car rental companies.

Why do these companies insist on checking credit with a debit card? Well, most rental companies see debit cards as a bit of a red flag. With debit cards, they are much more likely to run into problems with insufficient funds to cover either the rental itself or additional costs that the renter might occur by damaging the car or forgetting to fill up the tank before they return it.

Still, this debit card red flag isn’t big enough to stop car rental companies from renting to debit card-users altogether. Instead, they simply need to run a credit check on the borrower before handing over the keys—in addition to a number of other small ways they try to disincentivize borrowers from using debit cards.

Beyond a credit check, renting a car with a debit card could mean needing additional ID, providing proof of insurance, having certain car classes made unavailable to you, and even certain age restrictions. In short: renting a car with a debit card is a hassle. If you need to rent a car, use a credit card.

To learn more about how credit works, check out these related posts and articles from OppLoans:

What else do you want to know about credit checks? We want to hear from you! You can email us or you can find us on Facebook and Twitter.

Visit OppLoans on YouTube | Facebook | Twitter | LinkedIN

Will a Cash Advance Show up on Your Credit Report?

While a cash advance won’t necessarily show up on your credit report, there are still ways that taking one out could hurt your credit score.

When you need cash during an emergency—and you don’t have an emergency fund—it’s easy to only think about the short-term. Who cares how much this sketchy online loan from RealLoansNotaScam.com costs? Forget that this “lender” you found on Craigslist is literally a guy handing wadded-up ones out of the back of a Winnebago—you need cash and you need it now!

And yet, those long-term considerations can really come around to bite you in the behind, so they are good to keep in mind. Take cash advances for example. If you take one out, will it end up on your credit report? How will it affect your score? What even is a cash advance anyway?

That’s why we’re here. So sit back, take a deep breath, and remain calm as we answer your questions about cash advances, credit reports, and how the two relate.


How do credit reports work?

Credit reports are documents that contain a record of your borrowing history. They include stuff like outstanding balances, history of on-time payment (and any late or missed payments), the types of loans and credit cards you’ve taken out, accounts that have been sent to collections, bankruptcy filings, hard credit checks, etc. Most of the information on your credit report remains there for seven years, although some information, like bankruptcies, will stay on your report for longer.

These reports are created and maintained by the three major credit bureaus: Experian, TransUnion, and Equifax. Since some lenders, debt collectors, landlords, etc. might report consumer data to some but not all of the bureaus, information can vary across the reports. For this reason, you don’t actually have one credit report; you have three. And your credit score can change depending on which credit report was used to create it.

What is a cash advance?

There are two types of cash advances. The first type is a feature on your credit card, where you can use the card to take out cash. The amount of cash that you withdraw (plus an extra fee and any ATM fees you might also incur) is then added to your credit card balance in the same way that a regular purchase would be added.

Aside from the additional cash advance fee, credit card cash advances differ in a couple key ways from regular credit card transactions. First, they come with a higher APR than standard transactions. Second, there is no 30-day grace period for interest on these transactions; once they are added to your balance, interest starts accruing immediately. All in all, taking out a cash advance on your credit card is a good deal more expensive than simply using your card to make a purchase.

The second type of cash advance is a type of short-term no credit check loan. Similar to payday loans, these cash advance loans are advertised as being an “advance” on the borrower’s next paycheck. The typical repayment term for these loans is approximately two weeks, after which time the loan is to be repaid in a single lump sum—unlike traditional installment loans, which are paid off in a series of smaller payments over time.

The interest rates for these payday cash advances are extremely high, with an average APR over 300 percent. While their interest rates look reasonable in the short-term, the difficulty that many customers have repaying these loans can often mean rolling their loan over or paying it off and immediately borrowing a new one. The more that a person rolls over or reborrows their loan in order to make their payments, the more likely they are to become trapped in a predatory cycle of debt.

Are credit card cash advances added to your credit report?

The answer to this question is: kinda. Anytime you add (or subtract) from your credit card balance, that change is noted on your credit report. So a credit card cash advance will show up on your report as an addition to your credit card balance, but it won’t be noted any differently than a regular transaction would be.

So can a credit card cash advance negatively affect your credit? It can, but it’s not likely to. When it comes to your credit card balances, it’s a good idea to keep them pretty low relative to your total credit limit—even if you pay off your balances in full every month. Keeping your debt utilization ratio beneath 30 percent (meaning that you never spend more than 30 percent of your credit limit) will mostly keep those balances from negatively affecting your credit.

In order for a credit card cash advance to negatively affect your credit score, it would have to either push your balances above 30 percent or it would have to be such a massive increase to your balances that it would reflect a major change to your total amounts owed. Unless you are right beneath that 30 percent ratio or are taking out thousands of dollars worth of cash advances in a short period of time, your score will be unaffected.

Will a payday cash advance loan show up on your credit report?

The answer here is “no” with a small caveat. Payday cash advances are part of a subset of bad credit loans called “no credit check loans.” This subset includes cash advance loans, payday loans, and title loans. Since these no credit check lenders do not run any checks on your credit history during their application process, they also do not report your payment information to the credit bureaus.

Regular lenders like banks will always run a hard credit check when you apply for a personal loan. That hard check returns a full copy of your credit report and gets noted on the report itself. These checks will often lower your score slightly and can do so for up to two years. Many bad credit lenders run what’s called a “soft” check on your score, which returns less information and won’t affect your score at all. Many of these lenders, like OppLoans, also report your payment information, which can help your score if those payments are being made on-time.

No credit check lenders, on the other hand, do not run any kind of credit check and do not report payment information. They do, however, send unpaid accounts to collection agencies. And those agencies will report those accounts to the credit bureaus. (The exception is title lenders, who will repossess your car in order to repay the amount owed.) So while a payday cash advance loan will not end up on your credit report and won’t affect your score, an unpaid cash advance loan will indeed show up on your report and hurt your credit score.

To learn more about credit reports, check out these related posts and articles from OppLoans:

What other questions do you have about credit reports? We want to hear from you! You can email us or you can find us on Facebook and Twitter.

Visit OppLoans on YouTube | Facebook | Twitter | LinkedIN

How Bad Is It to Miss a Credit Card Payment?

How

A single missed payment can do lasting damage to your credit score.

Our latest episode of OppU Answers digs into a question that a lot of people have probably had at one point or another: How bad is it to miss a credit card or loan payment?

The short answer? Pretty bad. In fact, maybe 100-points-or-more bad.

A single late credit card or loan payment will impact people differently (largely based on their credit history), but the results will never be good. FICO, the company that provides the most widely used credit score, compared the effect of a late payment on two hypothetical consumers. In their test, Consumer A started off with a “good” score of 680, while Consumer B started off with a “very good” score of 780.

FICO found that after just one 30-day delinquency, Consumer A’s score dropped 60 to 80 points, slipping to the lower end of what’s considered a “fair” credit score. Consumer B’s score dropped even more, tumbling 90 to 110 points. This is because the higher a consumer’s credit score, the greater the effect a black mark will have on it.       

Consumer AConsumer B
Current FICO Score680780
Score After Missed Payment600-620670-690
Points Lost60-8090-110

Want to learn more and get tips on how to avoid missing a payment in the first place? Our latest episode of OppU Answers has you covered. 


Transcript

What Happens If I Miss a Credit Card or Loan Payment?

Hey OppU Answers! I’m a little low on cash this month. Exactly how bad would it be if I skipped my loan or credit card payment—just this once?

It seems like it shouldn’t be a big deal, right? After all, how much could one missed $70 payment really affect your life?

Turns out, it can get bad.

When you miss a credit card or loan payment, you typically have 30 days to pay up before your credit card company or loan servicer reports your late payment to the credit bureaus. But once they do, you’re gonna get dinged.

I’ve never missed a payment before. What’s one short-term slip-up gonna do?

According to FICO data, even someone with a 780 credit score and a spotless payment history could see a 90- to 110-point drop in their credit from just ONE 30-day delinquency.  

How Long Does It Take to Repair Damage From a Missed Payment?

But if it drops that quickly, it shouldn’t take long for me to build it back up, right?

Wrong. Once you get a black spot on your credit, it can take up to SEVEN YEARS to get it off. Even if you never make another late payment, anyone who pulls your credit report is going to be able to see that one mistake for basically the next decade.

How Can I Avoid Missing a Credit Card or Loan Payment?

The best way to keep your credit out of the fire is to make sure you pay all your bills on time.

If you’re short on cash this month, sit down and make up a budget, and cut out anything that’s not essential. Those $45 lobster lunches might be tasty, but you know what’s not tasty? Getting rejected for credit card and loan applications for the next seven years because you missed one payment.

If you’re struggling, try to at least make the minimum payment on your credit card, or call your loan company and see if you can work out a fix. Set up automatic payments on all your recurring expenses, so you won’t accidentally dock your score when your bill slips your mind.


If you have a money question burning a hole in your pocket, drop us a line on Twitter @OppUniversity. And be sure to check out our financial literacy lessons for more money tips!

How are Soft Credit Checks Different From Hard Checks?

soft-credit-checks-different-from-hard-checksThere are several differences between soft and hard credit checks, including when they can be run, how much info they return, and whether they affect your credit score.

You’ve probably heard before that applying for too many loans or credit cards can hurt your credit score. And that’s true! When you apply for a new loan or card, the lender will pull up a copy of your credit report to check your history as a borrower.

When lenders do that, it’s referred to as a hard credit check, and it gets recorded on your credit report. Too many recent credit inquiries can indeed lower your score. However, there’s another kind of credit check—a soft credit check that doesn’t doesn’t affect your score at all.

Credit inquiries let lenders vet potential borrowers.

When a lender or a business (like a landlord or a utility company) wants to make sure a customer is trustworthy, they pull a copy of their credit report. The information on those reports is also used to create your credit score.

Credit reports are maintained by the three major credit bureaus: Experian, TransUnion, and Equifax. They contain a comprehensive history of how you’ve used credit over the past seven years, including payments you’ve made (or not made), how much you owe, how long you’ve been using credit, whether you have any liens or bankruptcies, etc. Some info, like bankruptcies, stays on your report for longer than seven years.

Pulling a person’s credit report—also known as a “credit inquiry” or a “credit check”—allows a lender to verify how a customer has used credit in the past. Have they paid their bills? Do they have too many loans or cards already? Have they been sent to collections or had a lien placed on them?

Getting the answers to all these questions is important to lenders, as those answers help them decide who to lend to and at what rates. The better a person’s history of using credit, the larger the loan or credit card they can get and the lower the interest rate they can qualify for. And if you have a poor history, the reverse is true. If your credit score is low enough, you won’t be able to qualify for loans from any traditional lenders.

Hard credit inquiries and soft credit inquiries.

There are two types of credit inquiries: hard inquiries and soft inquiries. Even though they both involve getting a copy of your credit history, they differ in some key ways.

Hard credit checks involve pulling a complete copy of your credit report. These checks are done by lenders when they are considering a potential borrower’s application for more credit. A hard check can only be done with the borrower’s express permission, and they are themselves recorded on that person’s credit report.

Soft credit checks, on the other hand, do not return a person’s full credit report. Instead, they return a summary of the borrower’s credit history. Because soft checks return much less information, they do not need the borrower’s permission to be run. Soft credit checks are included in a person’s report but are not visible to outside parties viewing the report.

A soft credit check is usually performed in one of three situations. First, a soft check occurs when a person views their own credit report. Speaking of which, you can request one free copy of your credit report per year from each of the three bureaus. To do so, just visit www.AnnualCreditReport.com.

Second, a potential employer can run a soft credit check when you are applying for a job. When it comes to jobs in the financial industry—or jobs where you are going to be handling a lot of money for the company¯businesses like to make sure that you don’t have a ton of outstanding debts. In those situations, they could also go ahead and run a hard check, but only with your permission.

Third, soft credit inquiries often they occur when a lender or credit card company wants to “pre-approve” a potential customer. If you’ve ever received an email or a letter telling you that you’re pre-approved for a personal loan or credit card, then that company has run a soft check on your credit.

If you were to apply for the loan or card, they would then do a hard check, which would give them a lot more information. Depending on what they find during that hard pull on your credit report, they might decide to turn down your application, despite your being pre-approved.

Unlike hard checks, a soft check won’t hurt your score.

This is one of the most important ways in which a soft credit inquiry differs from a hard inquiry. Simply put, hard credit inquiries will lower your credit score, while soft inquiries will not. Both hard and soft credit inquiries stay on your report for two years, but only hard inquiries are taken into account when determining a person’s score.

Of the five categories of information that are used to create your credit score, one of the less important categories is “new credit inquiries,” which makes up 10 percent your score. This category tallies up all the times that you’ve applied for a new loan or credit card in the past two years. Too many hard credit inquiries within the past year will cause your score to go down.

The reason for this is simple. A bunch of hard credit checks can mean that person is desperate for new lines of credit, which is a sign that they haven’t been managing their current loans and credit cards responsibly. That’s something no lender likes to see.

The two exceptions to this rule come with auto and home loans. Shopping for these types of loans is almost always going to mean a lot of shopping around which, in turn, means a lot of hard credit inquiries. As such, any hard inquiries for these types of loans made within the same 45-day period are bundled together into a single inquiry.

Since soft inquiries can be run without the borrower’s permission, and do not represent an application for more credit, they are not taken into consideration with credit scoring.

Soft credit check loans are safer than no credit check loans.

Another situation in which a soft credit check might be run is during an application for a bad credit loan. This is done so that, like with hard credit checks, the lender can get an idea of whether or not the borrower can afford the loan they’re applying for.

This is a good thing because there are many bad credit lenders that don’t run any credit checks at all. The loans they offer are referred to as “no credit check loans” and they include most types of payday loans, title loans, and cash advance loans. Not running a credit check is a sign that the lender doesn’t actually care if the borrower can repay their loan on time.

In fact, not checking a customer’s ability to repay can be a sign of something more sinister; the lender might be hoping that the customer can’t afford their loan. These lenders stand to make much more money from the borrower rolling their loan over and paying additional interest to extend the due date.

There’s a term for when a person is constantly rolling over or reborrowing a loan, only ever paying the interest owed, never the principal. It’s called a “cycle of debt.” And it can ruin lives. Whether it’s a loan from a storefront or an online loan you find on a website, you’d do best to steer clear of no credit check loans.

If you have an emergency and need a bad credit installment loan for some quick cash, find a lender like OppLoans that runs soft credit checks on all their applicants. And if you get turned down, don’t worry. It’s only a soft check, so your credit score won’t be affected.

To learn more about credit scores, check out these related posts and articles from OppLoans:

What other questions do you have about credit scores? We want to hear from you! You can email us or you can find us on Facebook and Twitter.

Visit OppLoans on YouTube | Facebook | Twitter | LinkedIN

Can a Payday Loan Be Good For Your Credit Rating?

While a payday loan isn’t going to help your credit score, failing to pay one back can still hurt it.

Your credit score is probably the most important three-digit number in your life. Not only does it determine the rates you’ll pay on your loans and credit cards, it can even determine whether you get approved for said loans or cards in the first place.

Now, if you have a bad credit score, you’ll probably be stuck relying on bad credit loans and payday loans whenever you need to borrow money. Some of these loans can be a good option for emergency cash, but most of them are not.

Aside from their high interest rates and lump-sum repayment terms—which can make them very difficult to repay—payday loans have a third mark against them. Unlike a regular loan or credit card, paying one back one time will not help your credit score. In fact, taking out a payday loan can only ever hurt your score. Here’s why…


Credit scores sum up your history as a borrower. 

Your credit score is a number used by potential lenders and business partners (like landlords) to determine your trustworthiness as a borrower. The score is based on information from your credit reports, which are documents that track your history as a borrower over the past seven to 10 years. Credit reports are compiled by the three major credit bureaus: Experian, TransUnion, and Equifax.

While there are several different types of credit scores, the most important version is your FICO score, which is created by the FICO corporation. FICO scores are ranked on a scale from 300 to 850, with 300 being the worst score and 850 being the best. Generally, a score of 720 or above is considered great credit, while a score of 630 or below is considered bad credit.

While the specific algorithm used to create FICO scores is kept secret, FICO has announced that your score is made up of five different categories of information: payment history, amounts owed, length of credit history, credit mix, and new credit inquiries. To learn more about each category, check out our Know Your Credit Score blog series.

The most important category is your payment history; it makes up 35 percent of your total score. This category tracks your history of paying your bills on time. And when it comes to payday loans, payment history is the category where they do—or rather don’t—come into play.

Payday loans come with high rates and no credit check.

Payday loans are a type of small-dollar loan aimed at people with very poor credit scores. They are designed to be repaid on the borrower’s next payday (hence the name), which means they have very short repayment terms, usually two weeks or less.

Payday loans have interest rates that can seem reasonable compared to other personal loans but are actually much higher than they appear. For instance, a two-week loan with a 15 percent interest charge doesn’t seem to bad, but it actually carries an APR over 390 percent!

If payday loans were easy to pay off on time, then their cost wouldn’t be all that bad. However, studies have found that most payday loan customers have a great deal of trouble paying their loans off by the original due date. Part of this is due to lump-sum repayment, which means that the borrower has to pay the loan back all at once instead of in small, manageable increments.

Payday lenders do not perform a credit check on their customers before lending to them. This can make their loans—also sometimes referred to as “cash advance” loans—very appealing to people with bad credit scores. But no credit check comes with a hidden downside.

Payday loans don’t check your credit—or report your payments.

With no credit check loans like payday and title loans, it helps to think of credit reporting as a two-way street. These lenders do not run credit checks, but they do not report any information to the credit bureaus either.

Your credit score depends on the information that’s in your credit reports, and the credit bureaus depend on lenders, landlords, utility providers, etc. reporting your payment information to them. So when it comes to your credit report, a loan from a payday lender might as well not exist.

Earlier in this post, we mentioned that your credit score is the most important factor in your credit score. If you have a bad credit score, it’s probably because you have multiple late or missed payments on your credit report.

This is why one of the best ways to repair your credit history and raise your FICO score is to start making all your payments on time. But if you take out a payday loan, it won’t matter at all. Since that payment information won’t get reported to the credit bureaus, there is no way that a payday loan will be able to help your credit score.

A payday loan can’t help your score, but it can still hurt it.

That doesn’t sound fair, right? And you’re correct! It isn’t fair. But it’s still true. Payday lenders do not report payments to the credit bureaus, which means that their loans cannot help your credit. However, failing to pay back your payday loan is a different story altogether.

When you don’t pay back a lender, most of them will get rid of the debt by selling it to a collections agency and then writing it off. The same is true for payday lenders. The debt collectors that purchase your loan then try to contact you and get you to pay them back.

And while payday lenders don’t report to the credit bureaus, debt collectors sure do. So that unpaid payday loan will get added to your credit report as a collection notice, which can dramatically hurt your score.

Find a bad credit lender that reports to the credit bureaus.

If you have bad credit and need a loan, you’re better off sticking with an installment loan that, at the very least, gives you a chance to build your credit score. Some bad credit lenders, including OppLoans, perform a soft credit check when you apply. Soft credit checks don’t affect your credit score, so there’s no harm if your online loan application is rejected.

Another good option is a secured credit card. Unlike regular cards, these are available to people with poor credit scores and are secured by a cash deposit that also serves to set your credit limit. These companies also report to the credit bureaus, so using your card responsibly— keeping your balances under 30 percent and paying them off every month—will help your score.

To learn more about ways you can improve your credit score, check out these related posts and articles from OppLoans:

Has an unpaid payday loan ever hurt your credit rating? We want to hear from you! You can email us or you can find us on Facebook and Twitter.

Visit OppLoans on YouTube | Facebook | Twitter | LinkedIN