What are Payday Loans for Bad Credit?
Emergencies are, unfortunately, a part of our daily life. And most times, they tend to meet us financially unprepared. With bad credit ratings, it becomes even more difficult to get loans from traditional lenders.
That’s why payday loans for bad credit exist! This type of loan is a short-term facility for people with a poor credit history. Getting a bad credit payday loan helps you secure funding for immediate emergencies.
Payday loans of this nature are helpful to people who would have been denied loans because of their bad credit scores. You can get small payday loan amounts through a fast request process here at US Installment Loans.
Can I Get Payday Loans for Bad Credit?
Yes, you can get online payday loans for bad credit through US Installment Loans. Some of our partner lenders specialize in offering payday loans for bad credit. Besides your credit score, our lenders also consider other factors like your ability to repay the loan. Therefore, it is important to provide a proof of stable source of income when applying for a payday loan with bad credit.
However, lending money to borrowers with bad credit scores still poses a risk to lenders. As a result, some lenders may offer loans for bad credit with higher interest rates and lower loan amounts.
When you submit a request for payday loans for people with bad credit, you get to borrow between $100 and $5,000. All of this processing can be done as fast as the next business day.
Benefits of Getting an Online Payday Loan for Bad Credit
Taking a bad credit payday loan is a viable option for most people with poor credit. It also comes with some important benefits we explore below.
One of the perks of this loan is that it offers a fast and seamless request process. In addition, your lender may approve your funding in as little as 24 hours. So getting online payday loans for bad credit offers a fitting solution to quick money needs.
No Need for Collateral
Most payday loans for bad credit history are unsecured loans. This means you don’t have to put up any asset as collateral to get approved for the loan.
Suitable for Relatively Small Funding
If what you need is small cash over the short term, then you should opt for this form of payday loan. It helps you get small amounts with minimal borrowing costs.
Do I Qualify for an Online Payday Loan with Bad Credit?
The eligibility requirements for bad credit payday loans are particularly simple. Here are some of the factors that will qualify you to get an online payday loan.
- Age: You need to be at least 18 years.
- Income: You may need to show a stable source of income to prove your ability to repay the loan.
- Residence: Residents of the United States with a live checking account.
- Contact Information: You must have an active email address and mobile number.
How Can I Apply for Online Payday Loans with Bad Credit?
Requesting and receiving payday loans with a bad credit rating is seamless and straightforward with US Installment Loans. In three easy steps, you can complete your request and have the funds in your account.
Submit Required Information
To get started, fill out an online form on this site, providing your financial details and aspects of your loan application. Afterward, you’ll receive obligation-free offers from several lenders in our network. These offers state the loan amount available for you and repayment details.
Accept an offer that you’re most satisfied with. Once this is done, you will sign an agreement with the lender. You should read through all the terms and conditions before signing it.
Receive the Funds
With your loan approved and all agreements out of the way, you can expect to receive the funds in your checking account. Your loan typically arrives as early as the next business day. However, depending on the amount you borrow and your bank’s policies, it may take longer.
How Much Do You Want?
What to Consider Before Getting Online Payday Loans for Bad Credit
Without a doubt, bad credit payday loans offer a lot of benefits to borrowers. However, before opting to get one from a lender, there are aspects you should consider.
Firstly, payday loans are inextricably linked to high fees. They are considered very expensive, especially compared to other bank loans and credit cards. According to the Consumer Financial Protection Bureau, the APR on payday loans can be as high as 400%.
Also, it is highly important to consider your repayment options. You can take payday loans over a period of two weeks to one month. However, you must request only the amount you can pay conveniently in that time frame.
Defaulting on a payday loan will not only attract exorbitant interest and fees but also further damage your already deficient credit score. In turn, you might end up rolling loans into another, in an unending debt cycle.
Alternatives to Payday Loans with Bad Credit
If you’re chased back from payday loans by high-interest rates and fees, there are many other options you could consider.
You can get a personal loan from a credit union, or a bank. This option is significantly cheaper than payday loans but takes more time to process. Online lenders are also a good choice if you have a poor credit history, as they mostly perform a soft credit check.
Payday Alternative Loans (PALs)
Unlike traditional payday loans, PALs are issued by federal credit unions and allow repayment over a more extended period. You can borrow as much as $1,000 with lower interest and fees. Payday Alternative Lenders are more concerned about your income and repayment ability. So, you can request with a poor credit history.
Credit Card Cash Advance
You can get a small loan at your bank or an ATM using a credit card cash advance. This type of funding is placed on your credit card and you’ll have to repay like all other expenses. However, there are limits to the amount you can borrow.
Cash Advance App
Borrowers with a low credit rating can opt for a cash advance app. There are no exorbitant fees or interest rates. All you need to do is create an account and request quick cash to pay back later.
1. Can Payday Loans for Bad Credit Help Me Build My Credit?
No, taking a payday loan will not improve your credit score. This is because most lenders do not report to the credit bureaus that you repay your loan in time. On the other hand, if you default on your payday loan, it will worsen your credit score.
2. What Can Payday Loans for Bad Credit Be Used for?
You can use bad credit payday loans for a wide range of short-term projects and emergencies. These include car repair, mortgage, home expenses, groceries, or medical bills.
3. How Much Can I Borrow?
The bad credit payday loan option is a short-term facility and is mostly applicable for borrowers needing small, quick cash. So, the amount you can borrow with this type of loan ranges from $100 to $5,000.
4. Will US Installment Loans Check My Credit?
US Installment Loans will not perform a credit check on you, but our lenders will. It is common for every SEC-accredited lender to undertake some form of a credit check on borrowers. However, to ensure that your credit rating does not worsen, our partners typically perform a soft credit check.