Are you in a tough situation and need cash urgently? Do you have a bad credit score that has literally put traditional loans from banks out of your reach? If you have bad to poor credit score, which is anything typically under 650, finding a loan might prove to be an intricate task. Luckily, there are other options available to people with bad credit. Bad credit payday loans are one of these options.
At Bonsai Finance, we work with many lenders who offer payday loans to people with less than stellar credit. This means that having bad credit will not negatively affect your chances of getting a payday loan in most cases.
Requirements for Bad Credit Payday Loans
Even though most lenders will not consider your inability in the past to repay your loans on time (hence your bad credit score), they will consider your current ability to repay your loan. Therefore, the first requirement is that you have either full-time or part-time employment in order to qualify for bad credit payday loans in Canada.
Another requirement is that you have a checking account with a bank that allows electronic transactions. This is to allow the lender to deposit the funds directly to your checking account, as well as to withdraw funds when necessary.
When applying for a bad credit payday loan, you will be required to submit financial information so that it can be determined whether you qualify for the payday loan. The information needed includes bank records and pay stubs. Other required information includes a valid form of identification and your contact details.
What to Do when Applying for Bad Credit Payday Loans
Compare your loan options
It’s always advisable to compare different bad credit payday loan options so that you can find the one that best fits your needs. You’ll want to look at the credit amount, repayment terms, and the overall costs. The lenders we work with provide a wide range of payday loan options, so we will help you choose the most ideal one for you.
Evaluate the eligibility criteria
While it’s possible to get a payday loan with bad credit, it doesn’t necessarily mean that you’re guaranteed to get one with just about any lender. While most lenders will approve applicants with bad credit, they still have certain requirements that have to be met.
It’s, therefore, important for you to evaluate the eligibility criteria of the lender you wish apply to, including the minimum age, income, and province of residence, etc. We will look into your financial standing and help you choose from a list of loan options for which you are eligible for.
Apply for the loan amount you can afford
Most lenders will offer you anywhere from $100 to $1,500, depending upon different requirements that must be met. Even if you qualify for more, you shouldn’t bite more than you can chew. Only apply for the loan amount you can manage to pay back on time. In other words, be sure to find a bad credit payday loan that works with your budget, otherwise you’ll get caught in a vicious cycle of debt.
Budget to cover your loan repayments
When your application for a bad credit payday loan is approved, you loan repayments will generally begin on your next payday. Therefore, you should ensure that you have sufficient funds set aside, either from your upcoming pay cheque or a side hustle, to cover your payday loan.
It’s important to note that these types of loans are usually regulated by individual provinces, which means that fees and costs can vary.