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Payday loan providers focus on debit card history, will others?

The best payday loan providers understand how bank account management is an important piece of the money management puzzle. Too often, other lenders and creditors ignore you as they focus on your credit check data. So much emphasis is placed on the use and management of credit cards that those who choose not to use them end up being ignored. There is no acknowledgment of debit card management skills, at least not yet.

People have been managing household finances for many years with limited or no use of credit cards. Some people prefer to pay in cash and want nothing to do with plastic debt traps. Other people lost their ability to use credit, either through misuse or mismanagement of the debt portion. Now that most bank debit cards can also be used as credit cards, people with credit problems have access to much of what the world’s credit users have had at their fingertips. There is no fear of debt problems or accumulated interest. Debit cards take payment directly from your bank account. If you don’t have money to cover the payment, you will incur overdraft fees and NSF fees from the merchant.

For those who use credit cards due to credit issues, this banking information helps represent your most current money management activity. Credit bureaus do not use this information to help rebuild a dropped score. Popular financier Suze Orman wants to change this. She is on a crusade to include debit card use in the equation to help build financial security. She has an uphill battle ahead of her. So far, her petition to make a change has more than 175,000 followers.

There are doubts that Suze Orman will ever make progress. Credit scores were created to help lenders make better decisions. Credit cards reflect how a person manages third party money. The use of debit reflects how people manage their personal money. Chairman of Consumer Education John Ulzheimer has a different take on debit card use than Suze Orman. He believes that the only similarity between debit and credit cards is their appearance. In many ways you are right, debit cards are not liabilities. A user has no outstanding obligations other than her personal money matters. It will be interesting to see how the two sides develop during this exploration.

Meanwhile, those who continue to have credit problems will continue to have easy access to fast cash payday loans. Applicants must have an active bank account and no credit checks will be processed for loan approval. People will continue to seek budget relief as they work to rebuild credit scores.

It’s good to have options. Since bad debt management will stay on your credit history for 7 years or more, it feels good to know there is help beyond creditors. Use loans wisely, as any delinquent loan will only further damage your credit history. With a fast payment demand, it is important to consider all other debt obligations before applying. How much can your next paycheck cover once the payment is made? Many borrowers will go back to get a new loan to make their budget work. Repeated loans equivalent to massive finance charges. Before taking out any type of loan or using credit, think about the future. Ask yourself how your budget will handle the effects of paying the loan plus fees in full without having to borrow again.

Keep your bank accounts running smoothly and look to improve your credit history. You never know when you might need a good score. Develop a plan to maintain your obligations to third-party lenders. Keep your bank account healthy and rebuild your credit to build a secure financial future.

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