About 30% of Americans have poor credit.
If you’re among them, then you may be worried about how your current credit score could impact your ability to qualify for a loan.
You’d like to be able to get a payday loan not only to help you through a financially tough time, but also because you know that paying it back on time could improve your credit score.
But is it really possible to get payday loans with bad credit?
In a word: yes. Read on to learn more.
What Is a Payday Loan?
Payday loans are one of the best bad credit loans because they come in smaller amounts than other kinds of loans.
Usually, these loans run up to $5,000, but often are given out for much less. As the name implies, payday loans are like getting an advance on your paycheck.
You know you’ll have the money coming in soon, but you need it right now. Payday loans help to bridge that gap. They’re also popular because there are no rules about how you are or are not allowed to spend the money.
Yes, you should certainly never take out more than you can afford to pay back on time, and only take out a loan for true emergencies. However, the level of flexibility when it comes to spending payday loans is helpful to many.
Plus, you can get the money from payday loans incredibly quickly. Often, you’ll be able to receive funds in as little as 24 hours.
How to Get a Loan with Bad Credit
So, now that you know what a payday loan actually is, let’s talk about how you can actually qualify for loans with bad credit.
The good news is that many payday lenders don’t actually perform a credit check. And if you have a low credit score, this is likely great news (especially since every credit check dings your credit score.)
Usually, all you’ll need to do is provide a lender with proof of your current income. This lets them know that you’ll actually be able to pay back the loan you’ve taken out.
Additionally, you’ll need to be at least 18 years old and will likely need to show proof of residence in your current state.
Feel free to negotiate with lenders when it comes to your interest rate. Because these are short-term loans, the interest rate can be higher than most. Again, always make sure you can actually make your payments plus interest before the loan term ends.
Ready to Apply for Payday Loans with Bad Credit?
We hope this post has helped you see that you can get payday loans with bad credit.
Need help understanding how to manage your credit card debt or apply for the right card for you? Interested in learning more about your other lending options?
Our resource center will provide you with all the information you need to make smart financial choices.
When you’re ready to apply for a loan, submit your request and begin the process through our easy online application.
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