You may have already decided to apply for this type of loan. You may also have heard that when applying for a guaranteed bad credit loan most lenders don't carry out a credit check on you. Many, mistakenly, believe that their credit score is therefore not affected. Don't make this mistake; your credit rating will be affected: whether for good or worse depends on you.

If you have very bad credit and need money urgently you do not have the usual option of applying for a regular personal loan from your bank: you will almost certainly be refused. However, many in need of cash are getting to hear about guaranteed personal loans for people with bad credit. These loans are also known as payday loans.

These loans involve smallish amounts (up to $1,500), are paid straight into your checking account, and are usually paid back in full when you next get your monthly salary. Lenders can virtually guarantee anyone a loan of this type - indeed over 98% of applicants are accepted.

Another factor that helps make acceptance a sure thing is that the lender makes no credit check on the applicant - the lender doesn't care about past delinquent payments etc. However, if you think that a lack of a credit check will mean your credit score is not affected you are plain wrong.

Obviously, because no credit check is carried out against you, getting a payday loan will not improve your credit score. In addition, reputable loan companies will submit their lending information to the three major credit agencies: Experian, Equifax and TransUnion. Therefore a record is noted against your loan.

If you pay back your loan line on time this will reflect favorably on your report. But bear in mind that a small amount paid back over a very short period of time isn't going to raise your score all that much. But, if you get more of these loans and pay them all back in a timely manner, your rating will increase.

Not only that, but if you re-apply for the loans from the same lender, you may eventually be able to borrow more and extend the length of the repayment plan: a larger loan repaid back over an extended time period weighs more in your favor than small loans with very short repayment schedules.

You need to be careful. You should not only use payday loans to increase your credit rating. You should predominantly use other methods to do this, i.e. pay your bills on time, pay off your credit card in full at the end of each month etc.

Also, don't fall into the debt trap. Don't borrow one payday loan to pay off another. Rolling payday loans will have dire consequences on your already bad credit score.

When used judiciously, a guaranteed bad debt personal loan will not only provide with an urgent cash amount to help pay off other debts, they can also help improve your overall credit score.

If this type of loan is for you then follow the links to get the best guaranteed bad debt personal loans available. You can apply for guaranteed online personal loans from some of the most reputable and secure lenders in the country: choose one that best suits your requirements and not the lender's.

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