It’s an emergency that nearly all of us endure at some point in our lives – needing a bad credit payday loan.
Who do you turn to when traditional banks reject your application before of poor credit history?
Thankfully, there are payday loan lenders who accept customers with bad credit. In fact, some don’t even require you to have a bank account.
In this guide, we’ll explain how to get a payday loan with bad credit in as little as 15 minutes. We’ll explain the safe sites, and and out the predatory lenders with high interest rates and sneaky direct bank charges.
What is the process of applying for a bad credit payday loan?
Step 1: Visit one of the loan providers listed below.
Step 2: Apply for the loan by providing the lender with such information as your bank details, contact information, employment status and details, contact information for your references
Step 3: Agree to the terms of the loan and repayment period
Step 4: The lender gives you a check for the loan amount or deposits it into your account
Step 5: You repay the amount upon receiving your salary or ask for a rollover and pay the rollover fees
How we ranked the best payday loans for bad credit:
- Representative APR
- Maximum loan amounts
- Regulation and reputation
- Loan processing speeds
- Other fees and charges
- Credit score checking
- Loan repayment period
- Customer support
Best payday loans lenders for bad credit:
How can you increase your chances of getting approved for payday loans with bad credit?
I. Only apply to loans you meet the qualifying criteria for
The surest way of maximizing the possibility of having your bad credit payday loan being approved is applying to loans that you qualify for. After settling on one or a host of payday loan providers, proceed to check their eligibility criteria and ensure that you qualify. This involves checking such factors as the minimum monthly salary and age requirements.
II. Pay off current loans
You will also want to first clear any other loans, payday or otherwise that you may be having with same or another credit service provider. Applying to multiple loans when you already have a bad credit history says volumes about your financial planning and this may scare off potential lenders.
III. Provide valid and updated information
Most online-based payday loan for bad credit service providers operate on a strict code of trust and transparency when it comes to customer verification. You might want to consider this when filling your registration details or turning in your loan application as simple discrepancies in what you provide and publicly available records may see you disqualified.
IV. Ensure you pass the identity verification and fraud checks
The bad credit payday loans provider may have mentioned that they won’t conduct a credit score check but this doesn’t mean that they don’t conduct a background search on you. They will first check with the publicly available voters register to confirm your identity. It is therefore imperative that you ensure that the details provided to the lender matches the publicly available records.
V. Check the lenders minimum and maximum loan amounts
Most payday lenders will always indicate the minimum and maximum loan amounts they can provide an individual with a bad credit score. Some will even specify the loan amounts available to first-time applicants.
Factors to consider before applying for a payday loan with bad credit:
- APR: The Annual Percentage Rate of a loan takes into account the interest and other associated charges charged on a loan. You are better going for the payday loan lender with the lowest/most affordable APR.
- Possibility of an extended repayment period: Theoretically, the payday loan is supposed to help carry you until the next payday at which time it should be paid in full. Some bad credit payday lenders are however empathetic to your situation and allow extended repayment periods where the loan is spread and paid during several paydays.
- Credit score checking: If possible go for the ‘No-Credit Check’ payday loan providers. This is because every time a lender pulls your credit score record, they leave a digital footprint that other lenders may use to deny you loans especially if the case of multiple checks in a short period.
- Reporting to the credit referencing bureaus: You should also only go for a bad credit payday lender who helps you build or rebuild your credit score. Ensure that they explicitly promise to share your stellar loan repayment record with the referencing bureaus.
Can I get a bad credit payday loan with no bank account?
While most payday lenders for bad credit require you to have a bank account, some of these payday lenders have the ability to approve payday loans with no bank account. Payday lenders for bad credit usually require you to submit a bank statement and provide a bank account for their security, however, you can still apply for a secured credit card and get a cash advance loan. Though those cash advance loans are quick and easy, they are much more expensive than a regular payday loan
Another solution to when it comes to no bank account payday loans is to apply for Prepaid card loans, which is is a short-term loan that is automatically installed to you on a prepaid debit card and can be useful if you don’t have a bank account.
Can I get a bad credit payday loan with no direct deposit?
Fortunately, payday loans for bad credit with no direct deposit are not impossible. There are ways to get an online payday loan without having to have your funds direct-deposited. The best option is to apply for a cash advance loan, which requires you to give the lender a check for the amount of money you want to borrow, without any direct deposit. Cash advance lenders will either hand you cash or will transfer the money into your prepaid debit card.
Bear in mind that cash advance loans are quite risky and much more expensive than the cash advance loans you would take out on your credit card.
Many payday lenders also provide a directly deposited loan into their customers’ employers bank account so another option is to ask your employer to enroll you in their direct deposit program.
A bad credit score should no longer be a hindrance to loan access, especially in the case of time-sensitive cash emergencies. The bad credit payday loan lenders are out to make this a reality by advancing loan services to different individuals irrespective of their current credit rating. When assessing your eligibility for payday loans, these brands look into more than just your credit score and credit history. Some don’t even pull out your credit record but still help you build a credit history if you don’t have one or rebuild a negative one by reporting your loan repayment progress to the credit reference bureaus, effectively helping you gain access to better loan services and high street lenders in future. Some of the upsides of these payday bad credit references are the fact they have some of the fastest loan application and processing services. But this is a double-edged sword seeing that without proper financial discipline, you will end up hooked onto these expensive loans –especially when you rely on them for non-emergencies.
What is a bad credit payday loan?
This refers to a short term loan service advanced to individuals with a bad credit score based on salary income. In most cases, the amount advanced is only a percentage of the individual’s monthly salary and is supposed to be paid back during the next payday.
Must I settle the full loan amount during the next payday?
In theory, YES. The bad credit payday loan should be paid back immediately the next salary check clears. However, most payday loan lenders have embraced more flexible payment terms and offer extended payday loan repayment periods based on the amounts advanced.
How long does it take for the payday loan to be approved and deposited into my account?
Different payday loans bad credit direct lenders have different approaches to loan processing. They, however, are faster than conventional banks and will almost always process all loan applications during the same day they were accepted and deposit cash into your account within minutes – average 15 minutes – of loan approval.
What are the maximum amounts I can get for a bad credit payday loan?
The maximum amounts you can get for a bad credit payday loans vary from one institution to another. Some have a solid limit to what they can advance a first-time applicant while others don’t. The bottom line to either is that if you are looking for higher loans, you must prove your ability to repay in the form of solid salary income and no other debt obligations.
Will my bad credit payday lender run a credit score check?
Check through the fine print of the bad credit lenders loan terms to see if they explicitly commit to not pulling out your credit score report. Note that this is different from the statement ‘we don’t just consider your credit score in determining your eligibility for a payday loan’ as most will still conduct a soft credit score check.
Can timely bad credit payday loan repayment help improve my credit score?
Yes. Note that even though most bad credit payday loan service providers will lay too much emphasis on your credit score when determining your eligibility, most will help you rebuild your bad score or build a new one if you don’t have any by sharing your loan and repayment information with the bureau.
What are the most common causes of bad credit?
A bad credit score is primarily as a result of two primary factors. Firstly, it can be as a result of past financial mistakes like delayed loan repayments or failure to repay altogether and that’s where rebuilding comes in as you are trying to salvage your already soiled borrowing habits. Secondly, it can be as a result of a lack of debt history. You are considered to have a bad credit score history if you have never borrowed loans and banks aren’t sure about your borrowing history and thus the term ‘building’ a credit score.