Payday Loans for Bad Credit
Most payday loan lenders do not check an applicant’s credit, making payday loans for bad credit easy to obtain. Payday loans for bad credit can be used to repair credit as well as providing the necessary cash to cover an unexpected expense.
Those with less than acceptable credit will find payday loans for bad credit are the only option the applicant has to get a small, cash loan. Banks and credit unions are not very willing to approve a loan of any size to anyone with less than stellar credit without collateral and a cosigner.
Payday loans for bad credit are available for any applicant no matter the credit score and can be the quickest solution to any temporary cash flow problem. Most lenders will approve bad credit payday loans and have the cash to the applicant’s bank account in about 24 hours, sometimes sooner.
Lenders, who offer bad credit payday loans, expect the loan to be paid back within 7 to 30 days at a rate of 15 to 35%. The finance charge, higher than a standard bank or credit union loan, makes bad credit payday loans very expensive. The applicant should only borrow what is necessary and pay it back in the allotted time frame to avoid penalties and late fees.
Even with the high-finance rate and short payback time period, the loan can be helpful for the applicant if it is managed properly. The intent of the loan is to bridge a financial gap between paychecks and not to solve a chronic money management problem. If the applicant finds they are using payday loans on a regular basis, they should seek the services of a money manager or enroll in a money management class and learn how to better budget and save for a rainy day as well as pay bills on time.
Applicants will not be considered for bad credit payday loans if they have filed for bankruptcy within the year prior to the date of the application. If an applicant has filed for bankruptcy more than once, most lenders will not approve bad credit payday loans.
When applying for bad credit payday loans, the lender may offer several different payment options. The payment options may seem like they make the payment process easier, but chances are if a payment option, other than full payment of the loan at the time it is due, is chosen, there will be additional charges assessed. The lender may also offer installment payments rather than a one lump sum payment. The loan will still be due within the short time frame, but it is sometimes easier to make payments in 2 or 3 smaller amounts, as long as there are no additional fees imposed.
Bad credit payday loans are paid back the same way they are distributed and that is through electronic transfer. When the loan is approved, the lender will transfer the funds to the applicant’s bank account. When the loan is due, unless the applicant has made other payment arrangements, the lender will make a onetime withdrawal from the applicants bank account.