Bad credit payday loans – get a loan even if you have a bad credit score
Note to readers: We recommend that you do not rely on payday loans alone to get you out of financial ruts. You can explore other options as well, such as credit protection on your checking account. If you decide to go for the payday loan option, we are not direct lenders and neither are we responsible for the actions or decisions of lenders in general.
What are payday loans?
For you to understand this, you should know that lenders usually do credit assessments of borrowers. When it comes to payday loans, however, the situation is slightly different. You are in dire need of money for emergency reasons, and you take out a loan, but the lender does not do hard credit checks on you. For instance, they do not examine aspects such as collateral.
This is because aggregators operate the majority of online payday loan websites instead of actual lenders. In short, they will just do soft credit checks that are minimal, and this is in order to establish:
- Your identity
- Your previous repayment history (in case you have taken out loans before)
- Your ability to pay back the loan
When the lender certifies that the borrower passes the checks, as well as having a regular income source like government salary or paychecks, then the lender approves the borrower.
What makes payday loans different?
Payday loans that have no credit checks are typically short-term payday loans (lasting for a day to about two weeks).
Unlike regular loans, the lender gives them without many formalities and they are online. When the lender approves the borrower, you can have the money deposited in your bank account on the same day.
This speed of processing transactions is due to the short loan application form that does not need much paperwork, resulting in shorter processing times.
Note that we do not say that you must access Instant payday loans without credit checks; we are just saying that it is good to consider it as an option. Keep in mind that this is a contract between the lender and you.
Basic requirements for taking online payday loans
Similar to storefront loans, there are basic requirements you must meet when applying for a payday loan, which includes:
- Steady income source
- Valid Taxpayer Identification number or Social security number
- Active email address
- Active check account
Advantages of direct lenders
After you make the choice of getting a short-term loan, the next question is getting the provider of the service. The lenders can provide certain benefits when you choose to use their services, though the choice is yours as to the lender you choose to go with.
- You do not require a stellar record of credit scores
- 100% assurance of secure money transfer
- The processing of the transaction is instant, especially if you are borrowing money on working days and in official working hours
- You do not need collateral
- It is more convenient than traditional borrowing
- It is a fast source of funds and maintains confidentiality
- It is an easy way of solving emergencies
User confidentiality is particularly important in taking out payday loans without a bank account or credit check. One does the application online, and the lender makes the decision instantly. There are also strict laws in place that protect the personal information of the borrower. It is convenient as well since you do not need to submit extra fees for application processing, while the acceptance rate for loans is very high. The lender also does not need extra information from you regarding the loan.
Myths about loan applications from direct lenders
- All online lenders are equal
This is incorrect. You will find that some lenders are more expensive than others are, while your state may not approve of some of them or their services. There are also predatory lenders (those that use unreasonable terms and misleading practice to profit off borrowers), so you need to protect yourself as well. Part of protecting yourself involves checking online reviews as well as the lender rating with the Better Business Bureau.
- Online personal loans are slow
They are actually faster, especially when you compare them to the slow process of getting traditional loans. In fact, you can apply and get your request approval within a few hours, and get your cash by the end of the day particularly when you apply during working days.
- High credit scores are essential
With online loans and direct lenders, the situation is different. You do not need good credit scores. You just need a regular income source to act as a guarantee that you will pay the loan back.
Payday loans are a convenient financing option, especially if you have a bad score of credit since traditional lenders will not give you a loan in this case. You need to be careful, however, because the rates that direct lenders will offer you are higher, though you should be able to handle it instantly.