Bad credit rating is usually a disqualifying factor when applying for a loan. With credit score way less than perfect, chances of getting a loan verge almost on impossible. Not only is it hard to get approved for a loan with bad credit, but the loan itself is very costly once the lender is found. If you need a loan but you have bad credit, you must be cautious because it’s extremely easy to get yourself into expensive loan trap. If you’re looking for a loan with poor credit and have little time to spare, you may consider taking up a payday loan, sometimes referred to as cash advance loan. However, you must use payday loans wisely because they are very expensive and rendered for a short period of time, most often two-week period. Cash advance loans are based on the borrower’s personal check kept for future deposit. They might also be based on electronic access to the borrower’s bank account. When the first method is preferred, the check is written on the amount borrowed plus the finance charge and the borrower receives cash. In case the second method is chosen, the borrower signs over electronic access to his bank account in order to receive and repay the loan. The checks are held by lenders until the loan and finance charges are due. The borrower has several ways to pay the loan. He can wait for the check to be deposited in the bank, he can redeem the check by paying with cash, or he can pay only the finance charge and roll the loan over.
What Are Bad Credit Payday Loans?
Bad credit payday loans are small-dollar loans. Depending on state, one can borrow from $100 to $1000, in some cases more. They are short-term loans since the usual loan period is two weeks (the borrower’s following payday). Cash advances are also expensive.
The Problem of High Interest
The main thing that you have to worry about when it comes to a quick cash advance loan is the high interest that you will have to pay. It can be a real burden once the payment time starts because it is a lot higher than normal interest. Frequently, they cost 400% or more in APR. Also the finance charges are costly since they range from $15 to $30 of each $100 borrowed. The finance charges for a two-week bad credit payday loan make the interest rates as high as 390-780% APR. The shorter the loan period, the higher the APR is. All in all, payday cash advance loans are very expensive when compared to other loans. This is why it is extremely important to think twice before getting a payday loan for bad credit. Perhaps there are different kind of solutions to your financial problems, for instance peer-to-peer loan or a salary advance from employer.
APR Disclosure Some states have laws limiting the Annual Percentage Rate (APR) that a lender can charge you. APRs for cash advance loans range from 200% and 1386%, and APRs for installment loans range from 6.63% to 225%. Loans from a state that has no limiting laws or loans from a bank not governed by state laws may have an even higher APR. The APR is the rate at which your loan accrues interest and is based upon the amount, cost and term of your loan, repayment amounts and timing of payments. Lenders are legally required to show you the APR and other terms of your loan before you execute a loan agreement. APR rates are subject to change.
Exclusions Residents of some states may not be eligible for some or all short-term, small-dollar loans. Residents of Arkansas, New York, Vermont and West Virginia are not eligible to use this website or service. The states serviced by this website may change from time to time, without notice.
Credit Implications The operator of this website does not make any credit decisions. Independent, participating lenders that you might be matched with may perform credit checks with credit reporting bureaus or obtain consumer reports, typically through alternative providers to determine credit worthiness, credit standing and/or credit capacity. By submitting your information, you agree to allow participating lenders to verify your information and check your credit. Loans provided by independent, participating lenders in our network are designed to provide cash to you to be repaid within a short amount of time. The short-term loans are not a solution for long-term debt and credit difficulties. Only borrow an amount that can be repaid on the date of your next pay period. Consider seeking professional advice regarding your financial needs, risks and alternatives to short-term loans. Late Payments of loans may result in additional fees or collection activities, or both. Each lender has their own terms and conditions, please review their policies for further information. Nonpayment of credit could result in collection activities. Each lender has their own terms and conditions, please review their policies for further information. Every lender has its own renewal policy, which may differ from lender to lender. Please review your lender’s renewal policy.
Cash advances are intended for short-term financial relief and do not constitute long-term financial solutions. Consumers facing debt and credit difficulties should seek out debt and credit advisory help. Consumers are encouraged to consult the federal, state, and local governements to learn more about the risks involved with cash advances, local laws and regulations governing cash advances, possible loan alternatives and recent developments in their state. Consumers with credit difficulties should seek credit counseling. Residents of New York, Arizona, Georgia, Vermont, Virginia & West Virginia are not eligible to apply for a cash advance on this web site.