Are you interested in getting a payday loan, but you don’t know where to start? In this free guide, I will share the four best payday loans bad credit online lenders. With these lenders, you can quickly get the amount you need in your account within few hours of applying.
Here is just a quick overview of these lenders if you don’t have time to read the details of each lender.
Before applying for bad credit payday loans, you should at least know some crucial points about these loans. Learning about this information will help you make a better decision if you consider applying for a payday loan. Here are the things you should know before applying.
- What are bad credit payday loans?
- How much do payday loans for bad credit borrowers cost?
- How are these loans processed?
- Where you can quickly get payday loans bad credit online
What are bad credit payday loans?
Simply put, bad credit payday loans are short-term high-interest loans available online for borrowers with a credit score below 579. These loans usually have a 2 to 4 weeks repayment period, depending on how soon your next paycheck is. You can get two types of payday loans online with bad credit; single-payment payday loans and payday installment loans.
A single-payment payday loan is when you have to repay the money you borrow all at once in your next paycheck. If you only need a small amount of less than $800, getting a single-payment payday loan makes sense. It makes sense because you can pay the loan with interest all at once and free yourself from debt.
On the other hand, a payday installment loan is when you have to repay the loan in installments for several months. You should be aware that payday installment loans are more costly than single-payment payday loans. It only makes sense to go for this option if you don’t have a net income of more than $1700.
How much do payday loans for bad credit cost?
In general, payday loans will cost you at least $15 for every $100 you borrow for two-week terms. But if you have bad credit, the lender can charge you up to $30 for every $100 borrowed. Although this might seem like a 15 to 30% interest rate, it is actually between 391% to 782% if you calculate it in Annual Percentage Rate (APR).
According to Pew Charitable Trusts, borrowers who default on payday loans end up paying around $520 in fees for a $375 loan. If you don’t repay your single-payment payday loan in full, you could end up owing more than what you borrow if it continues for several months.
So you have to be 99% sure of repaying this loan on time to avoid getting into a debt cycle.
How are online payday loans processed?
There are four main stages involved in processing payday loans online. These three stages are; loan application, matching you with the right offers, reviewing and acceptance, and receiving funds. Let’s see how each stage work.
1. Loan Application:
The first stage of applying for payday loans online is to fill out the application form on the lender’s website. The information you have to submit is; your name, date of birth, the amount you need, and your email.
But before submitting this information, make sure you meet the following criteria.
- You have to be 18 years or older
- You are currently employed or have a verifiable monthly income
- Be a resident or a citizen
- You have a government-issued ID
- You have a checking account.
If you have the above information, you can quickly get approved and receive the funds within few hours of accepting an offer. The application form is just a prequalification to match you with the right offers for faster approval.
2. Matching you with the right offers:
Once you submit the prequalification online application form, a soft credit check is conducted for retrieving your credit score. Based on your credit score and the amount you need, you will receive payday loan offers on your email that matches your profile.
Receiving offers in your email is essential since it allows you to compare and choose the best loan offers. So go through the offers on your email and select the one that best suits you.
3. Reviewing and Acceptance:
Once you pick the right offer that is more favorable to you, it’s time to review the terms and accept the loan offer. After accepting the offer, you can submit copies of these documents;
- A government-issued identification (National ID or Drivers License)
- Your payslip or three months bank statement to prove your monthly income.
- Your employment contract (not a must, but if submitted, will increase your chances of getting the loan).
- Submit your checking account information for the loan deposit.
You will then receive the loan agreement form in your email to sign and send back.
4. Receiving Your Funds:
Once you complete step 3, it takes a few minutes to receive the funds in your account. Depending on your bank, the payment can be instant or takes a few hours to be available in your account.
Should You Take out Payday Loans with Bad Credit:
Payday loans with bad credit should only be considered if you can’t find a better alternative. To know how payday loans are not a good choice, some US States have even made it illegal because of how payday lenders exploit borrowers.
You might end up paying a ridiculous amount in fees which can lead to default in repayments, therefore, damage your credit. It would be best if you built up your credit, not the other way around. So you must be asking yourself what you should do if you need money urgently.
There is a better way to borrow money quickly and less expensively. A personal loan is the best option since you get more favorable rates and better loan terms.
Where Can you get payday loans online with bad credit?
Although there are countless payday loan lenders out there, it is often difficult to find legitimate lenders. If you have bad credit, it even makes it more challenging to get better rates.
Once most payday loan lenders realize you fall between the 300 – 579 credit score range, they will only offer you a very high-interest rate loan.
So, where can you get the best offers to satisfy your needs right now? Today you can compare and choose less expensive bad credit loan offers with lower interest rates by submitting the simple form below.
Depending on the information you submit, you will receive offers that you can quickly get approved for, no matter your credit score. These offers can also help you repair your credit when you repay the loan on time.
Loan Prequalify Form
Beware of most payday loan lenders out there because they will always want to rip you off. Payday loans should be your last resort, especially if you have bad credit. Once applying for a loan, the more information you submit will increase your chances of getting the loan.