If your life has reached the stage where you want to take a trip to Mount Rushmore or the Black Hills just so you can be around something that has some connection to money, it may be time to take stock of your lifestyle. Whether you live in Pierre or Sioux Falls, South Dakota payday loans may be able to help.
Lending Limits Are Coming Into Play
As a result of the high interest rates that follow short-term loans, many people have found themselves in trouble and borrowing more money just to keep up with the compounding interest. This is leading more and more states toward the idea of enacting borrowing limits to reduce negative consequences. This means that the way you can use payday loans in your life might be more restricted in the near future. However, that does not prevent the judicious application of short-term credit from being something you can apply to your life in a positive fashion.
The reason why your South Dakota payday loan can be helpful, ironically, is the same that it can be harmful. Say you have declared bankruptcy, which will knock your credit score for a look – and not the fun kind – this makes it very difficult for you to get any kind of loan through a traditional lender, regardless of your current ability to repay it.
Payday lenders, on the other hand, do not look at your credit score at all. All you need to get approved most of the time is proof of employment and a checking account. It is because of this that the interest rates are so high – the lender assumes a greater degree of risk and therefore charges a concomitant price. People who use this service without taking into account their actual ability to repay, wind up paying it too.
However, if you follow certain steps such as never borrowing for a recurring expense – because you will keep having to borrow for it – and making sure to repay promptly, not only will you avoid making your current situation worse, but you can actually improve it. This is because your credit report will reflect a pattern of borrowing with prompt and full repayment. This will raise your credit score, and improve your ability to borrow from more traditional sources and lower interest rates. All of this, of course, is contingent upon intelligent money management, which is crucial to getting you back on your feet.