Yes, we all know good credit and bad credit scores are determined based on our payment history, but we often do not fully understand the impact they have over a long period of time.

Good credit allows a person to spend money on things that will either be a good investment and will make them money or on things that are a necessity, but often people overspend on. A good example of something that is a necessity is a car. Too many people opt for an expensive car with high payments instead of a reliable, but not so sporty car that is efficient, costs thousands less, and is reliable.

Bad credit, scores under about 650, put the person in a position of having to "take what you can get" in many circumstances. So that auto purchase with high interest becomes the only way to get the car. Same for a mortgage if you qualify. Same for a credit card. The added costs of bad credit really add up. Everyone should do all they can to improve or restore their credit scores because the savings over a lifetime can be immense.

With a payday loan, you get an advance on your paycheck deposited into your bank account. The whole process, from application to funding, is usually just one business day. Sounds great, right? Over 12 million Americans get payday loans each year. But you will pay for having that bad credit and having to get such a loan. Fees are regulated by each state and are often at least $15 per $100 borrowed, but can be higher.


Author's Bio: 

Robin Williams is an Executive at CashOne, which serves to connect consumers across the U.S. quickly with its authorized lender network for payday loans online. Robin has more than 20+ years’ experience in Administrative Management, with several years in the lending industry.