The words “bad credit” and “easy loan” are rarely used in the same sentence. Talk to anyone with bad credit and they can probably attest to the challenges of getting approved for financing. But whereas a credit card issuer, mortgage lender or auto lender might turn down your request for a loan with bad credit, the scenario is quite different with a payday lender.
A payday loan is one of the easiest loans you can get. As a type of personal loan, payday loans are short-term solutions to money problems. Do you need an automotive repair, but won’t have the cash until payday? Instead of putting off the repair and borrowing someone’s car, you can get a quick cash advance from a payday lender and have funds deposited directly into your account. There is no credit check and you don’t have to pledge a car title as collateral. But while a payday loan is readily available if you have bad credit, there are a few things to consider.
Contact several lenders to compare rates.
There are fees associated with payday loans. Never apply for a cash advance without first comparing rates and fees with at least two or three lenders. These fees can vary, and typically range from $15 to $30 per $100.
Ask about repayment terms.
Know the exact due date of your payday loan prior to signing the loan agreement. Some payday lenders run cashless operations. They wire loan funds into your bank account and deduct funds on the due date. Because the money is taken from your account, it’s important that you know the exact date of the draft. Read your agreement before signing and make sure that funds are available on the due date.
Inquire about the required documentation.
While your payday lender will not run your credit report, documentation is required for an approval. The lender basically needs proof that you’re capable of repaying the loan. Documentation can include a voided check or a bank account statement, and a most recent paycheck stub. The lender may also want to see your driver’s license or other state ID. If applying over-the-phone or online, the lender will require that you fax this information.
Complete the paperwork.
After you decide the best payday lender, complete an application online or in-person. The loan process is much quicker than obtaining bank financing. In fact, most payday lenders will review and verify your bank information within a couple of hours. If you meet the requirements and are approved for a short-term loan, you can expect funds in your account within one business day.