Have you ever ran out of money before your next payday? If this happens often enough, your credit score has probably suffered. Opting for a bad-credit payday loan can make all the difference if you need to make a costly auto repair when payday is still a week off.
Consumers with bad credit often have a very difficult time getting any kind of loan approval. Payday loans have a much higher rate of approval, often 80%.
Traditional bank loans often require a lot of documentation before a loan officer will even talk to you. Tax returns, pay stubs for several months, monthly household expenses, and other paperwork needs to be submitted. Then, you have to wait for a month or more before you see a dollar.
Loan qualifications are quite simple. If you have a checking account, have some form of steady income, and are above the age of 18, you’re likely to qualify for one of these loans. Many lenders will make your loan amount available as soon as 1 business day.
A typical payday lender will require you to have had a checking account for three months or longer and make more than $1,000 in income each month. This can be from one or more sources.
However, if you filed for bankruptcy in the past year, are unemployed or have been at your present job for less than six months, have a history of overdrafts on your bank account, you will probably be turned down for a payday loan.
Payday loans typically have high interest rates, a reflection of the financial risk the lenders assume. This is something you want to consider carefully before submitting a request for one of these loans. It may not be right for your situation.
However, if you have a severe budget crisis – your car breaks down, your child needs to go the dentist, or you need to pay your credit card bill on time– payday loans can mean the difference between making it and not making it.
Used wisely, bad credit payday loans can help you re-establish good credit over time. Prompt repayment and taking advantage of these loans is a key toward financial well-being.