Bad Credit Payday Loans
It is Possible to get bad credit payday Loans. Pay day loans are short and quick cash loans that are intended to provide a cash bridge to cover an urgent financial need. The loans can be used for any unexpected purpose such as an automobile repair, appliance replacement, and medical equipment purchase or to cover a bill to avoid a late fee. It is wise to only use a payday loan for an emergency and not to finance a weekend at the beach or a cookout for the neighborhood.
Even though, the lending rates are higher than a bank loan, bad credit payday loans can be obtained quicker, sometimes in a matter of a few to 24 hours. Obtaining bad credit payday loans are sometimes right for those consumers who have less than good credit and would not necessarily qualify for bank or credit union loans. This gives the customer the opportunity to repair their credit score re-establish good credit.
Bad credit payday loans repaid in a timely manner will help a customer re-establish reputable credit. The application for bad credit payday loans is remarkably easy. The applicant provides contact information, employment and salary information along with banking information. That is less information than a bank or credit union requires for a loan. Bad credit payday loans are sometimes subject to the Teletrack check. Teletrack is a shared informational data base used by lending facilities to determine if the applicant has any outstanding loan balances.
Most bad credit payday loans not subject to a credit check do not allow first time applicant to apply for the maximum loan amount available. Usually a percentage of the maximum allowable is allowed, such as 5o to 75 percent.
Once the customer has demonstrated timely repayment will be made, future bad credit payday loans will be increased all at once or in increments until the maximum loan amount is reached. The maximum will be maintained as long as repayments are made on time, every time. If the customer defaults on a payment, the maximum loan allowed in the future will be less than the maximum allowed. The loan limit may be increased once again, after timely payments are again established. Bad credit payday loans are subject to late fees and penalties, the same as bank loans. However, an extension can be requested if funds for repayment are not available. 48 hours are usually the standard time given to request a payment extension. If the proper notice is not given, the customer may be charged late fees, in addition to returned check fees, if applicable.
Some loan lenders allow for early repayment as well as partial payments before the due date without any prepayment penalties, something not all bank and credit unions will allow. After approval of a pay day loan, the applicant has until 5:00 PM the next business day to rescind the loan if desired. If the loan amount is not accepted or returned in full within the proper time frame, there will be no further cost or obligation for bad credit payday loans.