Payday Loan Providers Focus On Debit Card History, Will Others?

Best payday loan providers understand how bank account management is an important piece of the money management puzzle. It is too often ignored by other lenders and creditors while they focus on credit check data instead. So much emphasis is placed on credit card usage and management that those who choose not to use them end up ignored. There is no acknowledgement for debit card management skills, at least not yet.

People have been managing household finances for many years on limited or no credit card use at all. Some people prefer to pay cash and don’t want anything to do with the plastic debt traps. Other people lost their ability to use credit by either misusing it or mismanaging the debt portion. Now that most bank debit cards may also be used as a credit cards, credit challenged people have access to much of what the credit users of the world has had at their fingertips. There is no fear of debt problems or accumulated interest. Debit cards pull payment directly from your bank account. If you don’t have money to cover the payment you will receive overdraft charges and merchant NSF fees.

For those who use debt cards because of credit challenges, this bank information helps to represent their most current money management activity. Credit bureaus do not use this information to help rebuild a fallen score. Popular financier, Suze Orman, wants to change this. She is on a crusade to get debit card use included 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 over 175,000 supporters.

There is doubt that Suze Orman will ever make headway. Credit scores were created to help lenders make better decisions. Credit cards reflect how a person manages third party money. Debit use reflects how people manage personal money. The President of Consumer Education, John Ulzheimer, holds a different opinion of debit card use than Suze Orman. He believes that the only similarity of debit and credit cards is how they look. In many ways he is right, debit cards are not liabilities. A user has no outstanding obligation other than to their personal money matters. It will be interesting to see the two sides play out during this exploration.

In the meantime, those who remain credit challenged will still have easy access to fast cash payday loans. Applicants will have to own a working bank account and no credit checks will be processed for loan approval. People will continue to seek out budget relief while they work on rebuilding credit scores.

It’s good to have options. Since bad debt management will stay on credit history for 7 years or more, it feels good to know that there is help beyond creditors. Use the loans wisely as any defaulted loans will only further hurt 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 payoff has been made? Many borrowers will once again obtain a new loan to make their budget work. Repeated loans equate to mass finance charges. Before you take out any kind of loan or use credit, think ahead. Question how your budget will handle the effects of paying off the loan plus fees in full without having to borrow once again.

Keep your bank accounts running smoothly and look to improve your credit history. You never know when you may need a good score. Develop a plan to keep your obligations to third party lenders. Maintain the health of your bank account and rebuild your credit to develop a secure financial future.


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