If you’re in need of quick cash, it can be tempting to apply for bad credit payday loans online and get the money you need as soon as possible. However, payday loans are available to people with poor credit only because these lenders know that you might struggle to repay the loan and will likely roll it over into another one, resulting in high fees and interest rates that can really add up! Before you make any decisions about bad credit payday loans online, here are seven things you need to know about them.
1) Why am I looking at a payday loan?
If you have bad credit, your credit score might be too low for a traditional loan. Or maybe you need cash fast and don’t want anyone to know where it came from—payday loans are private.
Regardless of why you need a payday loan, it’s important that you shop around and find one that’s right for you. There are many options available when it comes to the best payday loans uk and these should not be taken lightly.
2) Will these affect my credit rating?
Anyone can apply for a bad credit payday loan online, regardless of their credit rating or history. However, some lenders have higher interest rates and additional fees if you have a poor credit score. Make sure you know what your obligations are going into it so that you don’t wind up paying more than what you expected.
Many people think that bad credit means bankruptcy or foreclosure but there are other factors that go into determining your scores such as missed payments, charge-offs and more. If any of these show up on your report be sure to seek advice from an experienced financial adviser before applying for a bad credit payday loan online.
3) What do I need?
A bad credit payday loan is for people who have poor or bad credit and are in need of a short-term loan. It’s essentially a bridge loan that is used to get you over a rough spot—you may not be able to qualify for an unsecured personal loan with good terms, but you might be able to qualify for a high-interest payday loan.
The lenders who provide these loans will make their money back on interest and fees. So, what do you need? A bank account, your social security number, proof of employment (though some lenders can work around that) and proof of address.
4) How do I apply?
Like any loan or other financial product, you can apply for a payday loan online. Typically, you’ll fill out an application and submit it to a lender via phone or website. If approved, you should have your money in hand within 24 hours or sooner if your application is processed electronically.
In some cases, especially for fast loans on small amounts of money (like $100), many lenders offer instant decisions that could result in your cash being deposited into your account as soon as 5 minutes after submitting your information.
5) What are the fees like?
The fees on these loans aren’t too steep and typically range between 20-30% of your total amount borrowed—so for £100, for example, expect to pay around £20 in fees. That may sound expensive but it could help you out in an emergency. The good news is that some companies now offer 0% APR deals—great if you can afford them.
6) How much can I borrow?
Generally, you’ll be able to borrow up to £1000 online with these loans, but it does depend on your credit rating. A good rule of thumb is that if you’ve already borrowed personal loans, credit cards and things like that, then your limits will probably be lower than somebody who has never borrowed before. It all depends on each lender and how they assess your risk level.
