Credit problems can happen to anyone. Financial difficulties due to job loss or unexpected expenses can lead to missed car payments, overdue credit cards and bounced checks. All problems that can end up on your credit report and drive your rating down. Once this happens, it can take years to rebuild your financial history and establish a credit score high enough to qualify for a loan from traditional lenders. In the meantime, what options are available to you if you find yourself in need of emergency cash?
For many people, bad credit payday loans are the easiest and most affordable way to secure personal loans. Payday loans can put cash in your hand when you need it most; however, there are a few requirements that you must meet in order to qualify for one of these no fax payday loans.
- Applicants need to have a checking account that has been open for at least 30 days and it must be in good standing meaning no bounded checks. Credit reports are not a part of the payday lending, but verifying your bank account information is. Once approved, your cash advance is deposited into your checking account electronically and your repayment will be deducted from the same account based on the schedule you set up.
- Applicants must be employed and have a verified monthly income of between $1000 – $1200. Payday lending is built around the concept of repayment of personal installment loans on a person’s payday. If you are unemployed, repaying the loan in this way is not possible. In some cases, personal loans can be approved using unemployment benefits instead of job pay but these quick loans are not typical.
- Applicants must be a US citizen, 18 years or older at the time they apply for a bad credit payday loan.
Having low or bad credit, whether due to unexpected medical costs eating up your cash or costly car repairs or increasingly a period of unemployment, often leave people feeling embarrassed and unwilling to even try to get a loan. Traditional lenders such as banks and credit unions do very little to help good people with bad credit regain their confidence and their credit score. This is where bad credit payday loans are different. Your bankruptcy, missed payments or foreclosure does not affect your ability to qualify for the cash you need. However, it is a good idea to make sure that you understand your responsibilities for repayment before you apply by asking a few questions.
1. How much money can I get with a bad credit payday loan?
Advances for more than $500 are not usually granted for first time customers. Once you have established a repayment history with the loan company, that amount can increase.
2. How much interest or fees will I be paying?
A typical fee for cash advance loans is 25% of the loan amount. For example, if you borrow $100, you will repay $125 on payday.
3. When is repayment due and do I have to pay the loan in full?
Paying your loan in full on payday is the least expensive way to fulfill your repayment obligation. However, most bad credit payday loans have a repayment extension option that you can negotiate with the lender. Extending the loan will result in an increase in fees.
Bad credit payday loans are typically processed in hours and in some cases minutes. If you are in need of emergency cash and do not qualify for a personal loan from a traditional lender, an online payday loan may be the answer.