Bad Credit Payday Loans
Financial emergencies are likely to happen to anyone. From paying for a healthcare emergency to fixing a broken down car, you may find yourself in need of quick cash to handle an important situation that recently came up. Bad credit payday loans come in handy for people who may not have a credit card or access to personal loans from the bank. With a payday loan for bad credit, you can access the funds you need (in most cases up to $5000) to cater for an emergency.
Payday loans are unique from many other types of loans. They typically act as a cash advance for your upcoming salary-and-they’re designed to offer short-term relief to an immediate financial hurdle. Most payday loans allow you to access the cash within 24 hours or less.
There are many important factors to consider when applying for payday loans for bad credit. Not only do you need to identify the right lender you can work with, but you also need to factor in your ability to repay, how much time you have available, and whether your financial emergency is appropriately solved by a payday loan.
About Payday Loans for bad credit
There’s often a lot of confusion that surrounds bad credit payday loans. It’s important to understand what a payday loan is, how it works, and how it’s different from other types of loans (such as personal loans and installment loans).
A payday loan is essentially a short-term unsecured loan that is designed to help people meet immediate financial needs. Payday loans are offered with the premise that you will receive the cash within a short amount of time and repay it during your next payday. Most payday loans require you to have a stable verifiable income and be at least 18 years old.
Even with bad credit, you can still access a payday loan. This is because the loan is primarily based on your income as opposed to your credit history. And while there are lenders who consider your credit score when you apply for a payday loans, a payday loan for bad credit is designed for people who may have lower than average credit scores.
When facing a financial emergency, the tension and uncertainty of the situation often cause a lot of stress. Furthermore, having bad credit often makes it harder for you to access financial resources such as credit cards and personal loans. Luckily, a payday loan can give you the temporary reprieve you need to handle short-term financial emergencies. Because payday loans give you access to cash in a short amount of time, you can get money in your bank account (or a check) in less than 24-hours.
Payday loans are often automatically deducted from your next paycheck. This gives you time to handle financial emergencies and to repay the loan when you receive your next income. By coordinating the loan repayment with your actual pay dates, payday loans ease the financial pressure that repaying the borrowed amount would otherwise cause.
Accessing Bad Credit Payday Loans
If you have bad credit, you may be concerned with your ability to access a payday loan. Most individuals with bad credit have a hard time accessing traditional loan options because lenders consider them a higher risk. And if they qualify for a loan, the interest rates are often much higher than normal.
Payday loans for bad credit are a useful option for people with low credit scores. In most cases, a payday loan is dependent on one’s income rather than one’s credit history. Many lenders don’t consider your credit report when you apply for a payday loan. Furthermore, most credit checks are soft rather than hard credit checks. This means that your credit score is not affected when applying for a payday loan.
By working with Bonsai Finance, you get to explore many different payday loan providers through a single application. This means that you reduce the likelihood of having multiple hard credit checks carried out on your application. In addition, Bonsai Finance allows you to compare different loan amounts, interest rates, and repayment periods to suit your financial needs. If you find yourself with a financial emergency and you have bad credit, payday loans are a useful option to get you back on your feet.
Some payday loans come in the form of secured and unsecured loans. If applying for a secured loan, you will have to provide an asset (such as your home, car, or other pieces of property) that can be used as security for the loan. On the other hand, an unsecured payday loan simply depends on your paycheck as collateral for the loan. Most lenders provide unsecured payday loans as long as you have a stable and verifiable income.
Why get a Payday loan?
You may be wondering if applying for a payday loan is the right step for you to take. When faced with a financial emergency, many people are stuck with nowhere to turn to. For example, having a sick family member in the home and being unable to take them to the hospital can be quite stressful to the entire family. In addition, your car may break down on your way to work and you don’t have enough cash at the moment to fix it.
Payday loans come in handy to help you address such emergencies. Because you get the money in a short amount of time, you can address your immediate needs and get back on your feet before you repay the loan on your next paycheck.
There are many benefits of using a payday loan to address a financial emergency. Some of these include:
Quick access to cash
Perhaps the biggest benefit of payday loans is that you can receive the funds you need in less than 24 hours. In fact, some lenders deposit the cash in your account in as little as 15-30 minutes.
With such quick access, you can address the emergency you had in a timely manner. Prepare to take your loved one to hospital, fix a broken down car, catch up on a late rent payment, or pay off an impending loan with an instantly approved payday loan.
Freedom to spend the money how you deem appropriate
Another benefit of payday loans is that you have the freedom to spend the money in whatever manner you see fit. Many other types of loans tend to restrict how you can use the funds. For example, car payment loans may be sent directly to the dealership, while mortgage loans may be sent directly to the property owner.
On the other hand, payday loans are often credited directly into your bank account. You have the freedom to tackle your financial emergency according to your specific needs.
Compare interest rates and repayment periods
There are many payday loan lenders in the market today. Therefore, it can be challenging to navigate all lenders available in order to access a competitive interest rate.
Bonsai Finance makes the work easier for you by connecting you to a wide network of payday loan lenders. By filling out a single application, we connect you with numerous lenders who provide competitive payday loan options. We also make your decision easier by ranking all lenders according to your intended criteria.
Just a few minutes after filling out the application, Bonsai Finance provides you with the information you need to find the right lender.
Easy application process
You can apply for most payday loans online, from the comfort of your personal computer. The application process is quick and simple as compared with other types of loans. In fact, most applicants finish the application process in just a matter of minutes. This simple application process makes it easier for you to receive the funds that you need at the most urgent times.
Bad credit doesn’t matter
Payday loans bad credit are useful financial options for people with low or no credit scores. Because most lenders don’t rely on your credit report to offer you the loan, you can access the funds you need even if you have bad credit.
What you should consider when applying for payday loans bad credit?
As useful as payday loans are, there are important factors you should consider before applying for this financial option. It’s not uncommon for people to rush towards applying for a payday loan, only to end up in further debt and a deeper financial crisis.
When faced with an emergency and you need some quick cash, consider the following factors before applying for a payday loan.
1. Take a moment to think about it
The tension and uncertainty of a financial emergency can cause you to panic and rush towards applying for any payday loan. However, take some time to prepare for the application process.
Remember that there are many different lenders who provide payday loans for bad credit. Take your time to consider if a payday loan is right for you before you apply. By using a financial resource such as Bonsai Finance, you can gain access to multiple loan options by filling out one application.
2. The loan should have a specific purpose
To avoid getting into a financial crisis, make sure your payday loan is going towards a specific financial need. Don’t simply apply for the payday loan because you qualify. Reserve this important resource for when you really need it.
3. Identify the right lender
By working with the right lender, you can access a competitive payday loan that meets your specific needs. Before you decide on a specific loan, make sure the lender has your best interests in mind. Don’t be afraid to ask questions regarding interest rates, the repayment process, and how much you can qualify for.
Bonsai Finance maintains a network of lenders who are reputable, licensed and offer competitive loan rates.
4. Understand the terms of the loan
Before agreeing to a payday loan for bad credit, make sure you’ve read the fine print. Many people are caught off-guard because they didn’t take time to clarify about the repayment period, interest rate, and other important details regarding the loan. The lender should provide detailed information regarding the loan for you to review.
5. Can you repay what you intend to borrow?
When applying for a payday loan, you also need to be honest with yourself. Are you able to repay the amount that you’re borrowing? Most payday loans are due on your next paycheck. Therefore, they’re useful for short-term emergencies that you can pay off when you receive your next income. If you have longer-term financial needs, you may wish to consider other options such as personal loans or installment loans.
During the application process, only apply for loans that you can realistically afford to repay. Prepare a short-term budget and adjust it to your financial needs. If you’ll need more time to repay, consult with the lender to determine additional repayment options. This step is important because it will prevent you from accumulating unnecessary debt down the road.
Understanding the application process
The application process for payday loans is quick and simple. Most loans are available online and the funds are directly deposited into your bank account. You can access anywhere between $300-$5000 via payday loans.
If you don’t have a bank account, some lenders provide the funds via check. In such cases, you would need to visit the lender’s physical offices to fill out an application. Borrowers typically need to meet the following requirements:
- A stable and verifiable income
- At least 18 years of age
- U.S citizen or permanent resident
- A valid bank account (if applying online)
- A phone number where you can be reached
Bad credit payday loans are valuable financial resources when used correctly. Because you can’t always foresee an emergency, having access to this financial option can help keep you afloat when you’re in need of quick cash. And with Bonsai Finance by your side, we work diligently to ensure that you find the right lender for your needs.