First of all, figure out the costs of this bad credit loans. Second, whether or not you able to afford the proposed payments.
There is always a time comes in our lives when you find yourself in a financial emergency and don’t have any savings to cover it, at that point bad credit loans can help you stabilize and keep your financial boat afloat.
But we are not saying that you should be taking the first bad credit loan you see in the market or online. It also like other financial obligations, you have to research at your own end and select the best loan that works best for you.
And with same day loans for bad credit, you should do some math.
Check the APR of the loan
In bad credit loans there is always a higher risk for lenders due to the defaulter. So it is natural for them to charge higher interest rates than the standard personal loans. That’s something we can not avoid.
But there are some lenders that charge much higher interest rates than other lenders. So need to be very careful, If your not than you could end up with more expensive loan that will lead you to more financial troubles.
To avoid more financial troubles, it's best if you check their APR (Annual Percentage Rates) instead of stated interest rates. APR calculates the cost of a loan including interest rates and fees over the course of a full year.
Let’s understand this with an example:
A bad credit loan for two weeks cost you with the interest rate of $15 per $100. And if you need to borrow $400 with a loan then you need to pay back $460 on the loan due date. Which is 2 weeks or you could say 14 days in the future.
This interest rate is not too bad, is it?
But in case if you roll over or re-borrow that loan, which is very common to do then you have to pay an additional 15 percent interest rate for the next two weeks.
Let’s jump to the APR of the loan. A 15 percent interest rate which is charged for two weeks is comes out to an APR of…. 391 percent! Now it's easy to understand that how much these loans costlier than the standard personal loans
As we mentioned these loans are always going to be expensive, because of the involvement of risk for lenders. But you should still consider them and find the least expensive loan available coz if you have bad credit score and in emergency situations these loans will be a life savior for you.
If you find this information helpful, visit us : http://www.samedayloansforbadcredit.com