Bad Credit Payday Loans
Learn the requirements you must meet in order for your Payday Loan application to be approved.
What is a Payday Loan for bad credit?
Payday Loan is a short-term type of financing that allows borrowers to get money to cover emergency needs. Since this loan is short term, you must repay it within 30 days. With a Payday Loan you can get an amount for 100 to 1000$. Also, the Payday Loan is unsecured, so you do not need to provide collateral in order for your application to be approved. Payday Loans are recommended to be used only in emergencies as they have large fees and can be difficult to cover from a single paycheck.
Why do people take Payday Loans for bad credit?
While you can take out a loan to cover any personal needs, usually borrowers apply to cover emergencies such as:
- Payment of utility bills
- Home or car repair
- Medical treatment
- Urgent purchase
- Buying food
- Other emergency needs.
It doesn’t matter if you find yourself in one of these situations or trying to cope with other needs, you can apply and get fast funding.
What is bad credit?
Before getting to the point, you need to understand what bad credit is. Typically, bad credit history is considered a low credit or a short credit history. Your credit score may be damaged if you have missed loan payments or exceeded your credit card limits in the past.
There are several credit rating models, however FICO is one of the most popular. According to this system, you can understand what your credit history is:
|Excellent credit score||800-850|
|Very good credit score||740-799|
|Good credit score||670-739|
|Fair credit score||580-669|
|Poor credit score||300-579|
Now you can see which FICO credit score you have and which loan you can get.
What is a Bad Credit Payday Loan?
Bad credit Payday Loan is a type of financing for people who have bad credit history and have had trouble repaying loans in the past. Typically, these loans imply that you will pay more interest or fees as it is risky for the lender to provide you with a loan. Please note that eligibility criteria and interest rates vary from lender to lender, so it’s best to compare offers and find the lender that will offer you the best deal.
What’s wrong with Payday Loans for bad credit?
Payday Loan is one of the most expensive loan products on the market. Most payday lenders approve applications even with bad credit, however, they do not offer the most favorable credit terms. The Payday Loan is fee-based so you have to pay between $ 15 and $ 30 for every $ 100 you borrow.
For example, you can study what interest rates you will receive if you take a minimum $ 100 loan with a good credit history and a bad one. With a good one you will get a minimum 15 $ fee, and with a good one from 25 to 30 dollars for every $100 borrowed.
|Loan amount||Fee||Total Amount|
|100 $||15 $||115 $|
|100 $||30 $||130 $|
Of course, the larger the loan amount, the more fee you will have to pay. Let’s look at other examples if you take $ 300, $ 500 and $ 1000 with bad credit.
|Loan amount||Fee||Total Amount||Interest Overpayment|
|300 $||30 $||390 $||90 $|
|500 $||30 $||650 $||150 $|
|1000 $||30 $||1300 $||300 $|
As you can see, you have to pay huge interest even on small amounts. That is why it is recommended to explore other options for obtaining funding before submitting an application.
How to get a Payday Loan for bad credit?
Most payday lenders approve applications even with bad credit so it won’t be hard for you to find a lender. However, it is important to always compare offers. Learn the simple steps to help you get funding.
- Find a lender. First of all, study the various offers of lenders, as some may offer better interest rates than others. Also pay attention to fees and commissions.
- Submit your application. Lenders usually offer to apply online or in person, but the online form is the best option. Visit the lender’s website and click the “apply online” button. You will be asked to provide information such as name, residential address, income information, and more.
- Wait for approval. Lenders approve applications almost instantly, so you are guaranteed to receive a response to your application the same day you submitted it. The lender will contact you to discuss the details of the loan and its repayment.
- Get paid. After reviewing the loan conditions, you will be able to sign a contract and receive financing. The money will be transferred to your bank account within one business day.
Important! Before submitting the application, make sure that all data is entered correctly, otherwise you may be disqualified.
What are the requirements for obtaining a Payday Loan for bad credit?
Each lender has its own eligibility criteria, but the main ones remain unchanged. Pay attention to them and also study the laws of the state before applying.
|Age||You must be at least 18 (19 in some states)|
|Citizenship||Only US citizens or official residents are eligible to apply|
|ID confirmation||You must provide a passport, government issued ID or driver’s license|
|Income||You must provide proof that you are receiving regular monthly payments|
|Contact details||The lender will ask for a contact phone number and email|
If you meet the basic requirements of the lender, then most likely your application for a Payday Loan will be approved even if you have a bad credit history. More than 80% of applications are approved.
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