I Have Bad Credit – Can I Still Get A Payday Loan?
Bad credit can be a big problem if you’re applying for a loan. But having a poor credit score doesn’t mean you can’t be approved for a payday loan. When you send in an application for a payday loan most lenders will want to look at your ability to pay back the loan as well as your employment and income information. That’s why you likely can still get approved with a direct payday lender even with bad credit. Payday Loans are designed to help borrowers in a financial emergency. Yes, they have high fees and a huge annual percentage rate, but you can take advantage of the loan offer even with bad credit. You’ll want to pay off the loan quickly to avoid the hefty interest rates. Contact your direct payday lender if there’s even a chance of falling behind. Bad credit payday loans are available in the right situation. But it pays to know if you really need one and why you may want to avoid seeking out a direct payday loan offer.
Qualify For A Payday Loan With Bad Credit
Odds are that if you’re looking for some type of payday loan or cash advance you likely have already tried to qualify for a more traditional type of personal loan. These other loan offers include a bank loan and lower-interest installment loans from online lenders. Even though the rates on installment loans are often higher than the prime amount they’re not going to get near what you see with a payday advance. Another way to find out if you have bad credit is to check your 3 bureau credit report. There’s really no exact number or range of credit score to know if you have “poor credit”. But a credit score less than 600 is going to be a problem and prevent you from getting a bank loan and likely a personal loan as well.
That’s not to say you can’t fix your credit score and qualify for those offers. We’ve seen applicants increase the score by over 100 points in a month by contacting their creditors regarding inaccurate information. Look at different credit repair services and consider building your credit score on your own by removing negative or false items. Also, consider taking out a secured loan to rebuild your score and avoid a direct lender payday loan. With a secured loan you put up some type of collateral for the amount you borrow and avoid the high interest you see with many of the largest direct payday lenders.
Most Direct Payday Lenders Will Look Beyond Your Credit Score
The good news is that most direct payday loan lenders are going to look past a negative or poor credit report. Payday loans are often given to borrowers with credit scores that are less than average. Often this is because the direct lenders will look at your entire financial situation. Yes, you may be late on a few cash advances or loans in the past. Or you may have a past bankruptcy or charge off that went to collections. But it’s worth repeating, payday loan companies are used to people applying for loans with poor credit! They want to know if you can afford to pay back the loan. Lenders want to verify and look into an applicant’s job history and confirm their banking information. The high-interest rate with a payday loan gives a direct lender more options in their loan options. Of course, it’s not ideal that you may have missed payments in the past. But if everything checks out with your job verification, direct deposit information, and bank details you should be good to go for a payday loan. Even with a bad credit score and missed payments, you should have no problem applying and being approved for a payday loan with a credit check.
Even With Bad Credit, Consider Your Lending Options
Just because you can get a payday loan doesn’t mean you should take the offer. The rates are high and you don’t want to get stuck making high interest payments for longer than you need to. Be sure to check on all other lending resources available before you move forward with a direct payday loan lender. Can you borrow money from a friend or relative? Are there any local or federal programs you may qualify for that can help you with a short term financial emergency? Also, do you need the money in the first place? Run the expected loan details through an interest calculator to get a good feel for exactly how much money you’re going to pay on a direct online payday loan that’s probably only going to get you a few hundred dollars. Payday loans are great for those with bad credit or payment issues in their past. But make sure you need the money and understand you may still qualify for other loan and financing options, even with bad credit!