You’re in a pickle.
You’ve got bills to pay, rent to cover, and food to put on the table. But after a hectic holiday season, last month’s paycheck won’t cover it all.
Worse still, a poor credit rating means traditional sources of financial support are unavailable.
The situation isn’t great, but you’re far from alone! Consumer debt’s hovering at around $14 trillion these days. Households near and far are struggling to make ends meet. Increasing numbers of people are being forced to take on debt.
You might be reluctant to do the same. However, bad credit payday loans are one form of debt that offers a viable solution to these sorts of financial problems.
Would you like to learn more about them? Well, the following guide should help.
Keep reading for everything you need to know about payday loans.
What Are Bad Credit Payday Loans?
Let’s start with a definition.
Now, you might be able to deduce what these loans entail from the name! All the same, allow us to go into a bit more detail about what’s involved.
Bad credit payday loans are a form of short-term debt that’s available to people with poor credit scores. People borrow small sums of money (think under $1000) to be repaid upon receipt of their next paycheck.
Catches to know about include the fees and high-interest rates that usually accompany these loans. Because of the financial risk involved for the lender, these loans are expensive in nature.
Anyone who applies for one should ensure they’re able to repay it, in full, by the scheduled date.
We’ve got more info on the key considerations for accessing payday loans later in the article. Make sure you check them out!
Advantages of Payday Loans
Payday loans have a number of advantages to know about. We’ll go through a few of the main ones here:
1. They’re Quick and Easy
You’ll struggle to find a loan application easier than that of a payday loan.
The entire process can be completed within 24 hours or less!
That’s good news for anybody in serious financial trouble. If you’re in need of rapid access to funds, then payday loans certainly deliver.
2. There’s Little Paperwork
One reason these loans are so simple is through the lack of paperwork involved.
Go to the bank for a loan and you can be bogged down in confusing documents to complete. There’s none of that here. In general, there’s literally nothing by way of paperwork to worry about.
Occasionally you’ll be required to submit certain documents and details with an application. More often, though, you escape the bureaucratic process entirely.
3. There’s a High Chance of Approval
The nature of a bad credit loan is that denial of your application is unlikely.
After all, most loans are refused on the basis of excessive risk.
Lenders run a credit check and make a decision to approve based upon their findings. Traditional lenders, such as banks, take credit seriously and deny applications if the score is too low.
That isn’t the case with these payday loans though, where bad credit is expected.
4. Credit Checks Don’t Appear on Reports
Payday loan providers run softer credit checks than traditional lenders.
The purpose? To confirm the information that’s of particular interest. As we’ve noted, lenders aren’t so concerned with your credit score. They do, however, want to make sure you can repay the loan without defaulting.
To that end, they’ll seek to verify the authenticity of your bank account and job. The good news is that these checks won’t show up on your credit reports.
Payday Loan Considerations
Payday loans aren’t right for everybody. Here are a few considerations to help you decide if it’ll be right for you.
1. The Expense
Payday loans don’t come cheap.
Interest rates are high versus other loans, which means you end up paying back far more than you borrowed. Ensure you have the means to repay your loan in full come your next paycheck.
If you can’t, then you’ll end up in further financial trouble in due course. Expect added fees and potential legal action if you fail to pay off the debt.
2. The Potential Loan Sharks
Not all payday lenders are reputable.
Unfortunately, a number of ‘organizations’ set up to prey upon vulnerable people in financial distress. Desperate for finance, someone is more likely to agree to a loan with extortionate interest rates that leaves them unable to repay the loan.
Fees follow and the debt grows; the shark pockets the money.
Avoid this eventuality by doing your due diligence before signing the dotted line. Research the lender and read reviews to ascertain their reputation.
How to Access Payday Loans
Okay, let’s skip ahead.
You’ve weighed up the pros and cons and have decided a payday loan is the best way forward. How do you access them?
Thankfully, assuming you’re old enough (the age varies between states, but it’s usually 18 or 21 years old) and have a job, there’s not a lot separating you from the funds!
More often than not you’re only expected to provide proof of income and a form of ID. With an active bank account (and possibly an email address), the money should be accessible to you within hours.
Be aware that not everyone is granted a bad credit payday loan.
Lenders can refuse applications based on numerous factors, including excessive levels of risk, state law infractions, and/or current loans being repaid.
Time to Decide on Bad Credit Payday Loans
Bad credit payday loans can be a lifeline for anyone having financial trouble who can’t access traditional sources of financial support.
However, they can also be a mystery for someone who’s never heard of them. Alas, ignorance is a recipe for negative implications in this domain; we hope this article has proved enlightening!
In Kansas City and interested in applying for a payday loan of this nature? Contact us today to get the ball rolling.