What is a bad credit Payday Loan?
You probably know that a Payday Loan is a simple and safe type of financing that helps borrowers in a difficult situation to get money. Since the loan is short-term, you must pay off the debt within 30 days (on the day of your next paycheck). You can get a Payday Loan even with a bad credit history. A bad credit means a low credit rating or a short credit history. If you miss loan payments or exceed your credit limit, it worsens your credit history.
A bad credit loan is a good option for those people who cannot qualify for another type of loan or have not had time to build a credit history. Interest rates and credit conditions may vary depending on the lender and state laws.
What makes up a bad credit score?
Before applying for a Payday Loan for bad credit, it is important to study how FICO calculates your credit rating. The loan is calculated based on five factors:
- Payment history - 35%
- Amounts owed - 30%
- Length of credit history - 15%
- New credit - 10%
- Credit mix - 10%
Thus, even if you have problems with one of the factors, your credit may deteriorate.
Can I get a Payday Loan with bad credit?
Yes, Payday Loan is designed to ensure that borrowers with any type of loan can get money and cope with financial difficulties. Moreover, often payday lenders do not ask for a credit check at all since it is people with bad credit who choose this type of financing. People with good or excellent credit prefer other options that are more profitable and less expensive.
Instead of your credit, payday lenders look at other factors, the main one being your regular monthly source of income.
How quickly can I get a Payday Loan for bad credit?
Payday lenders are known for their fast financing. It will take you about 5 minutes to fill out a simple online form, and once you submit it, you will have an answer almost instantly! If you are approved, the lender will contact you. By signing the contract, you will be able to receive money directly into your bank account the very next business day.
Thus, the entire process from submitting an application to receiving funding can be completed within 24 hours. Some lenders even provide same day funding if you apply before 10:30 AM EST.
How much does a Payday Loan for bad credit cost?
Payday Loan is quite an expensive financial solution; therefore, it is recommended to apply only in case of emergency. The cost of the loan will depend on the amount you need and the fee charged. Typically, payday lenders offer loans ranging from $ 100 to $ 1000, and you have to pay a fee between $ 15 and $ 20 for every $ 100. The amount of your fee will vary depending on state laws.
What are my chances of getting a Payday Loan for bad credit?
Payday Loans are easy enough to get as they are designed specifically for borrowers with bad credit. Before applying, you need to study the eligibility criteria of a particular lender and make sure that you meet. The advantage of the loan is that over 80% of funding applications are approved, so your chances are high.
What are the requirements for obtaining a Payday Loan for bad credit?
Each payday lender has its own eligibility criteria, which must be met, but the basic ones remain unchanged. Of course, you must be at least 18 years old and be a US citizen or official resident to be eligible to apply. Other requirements include:
- Active checking account
- Regular monthly source of income
- Valid Social Security Number
- Government identification card or driver’s license
- Email and phone number
- Valid residential address
Remember that the criteria may vary not only from lender to lender, but also depending on the state laws.
How to apply for a Payday Loan for bad credit?
Lenders have simplified the application process so you can now get your loan completely online! You no longer need to go to the lender's store and waste time waiting.
- Choose a lender. Now there is a huge number of lenders who offer Payday Loans for bad credit. Check out their offers, and also pay attention to fees and commissions.
- Complete the online form. Now online application is the fastest and most convenient financing option. All you need to do is visit the lender's website, click on the "apply" button and provide basic information about yourself.
- Wait for a response. Lenders approve applications almost instantly, so you are guaranteed to get an answer the same day you fill out the form. If you are approved, the lender will contact you to discuss the details.
- Getting money. The loan amount will be transferred directly to your bank account within one business day.
What can an online bad credit Payday Loan be used for?
As mentioned, this type of loan is expensive and should only be used to cover emergency needs. However, payday lenders have no restrictions, so you can spend the money however you want.
As a rule, borrowers apply to:
- Repair the car
- Make the necessary purchase
- Pay for emergency medical treatment
- Pay rent or utility bills
- Deal with unexpected bills
Thus, if you find yourself in a similar situation and are confident that you can repay the debt on time, then Payday Loan for bad credit can be your salvation.