How to Get Payday Loans With Bad Credit
Evaluate your options., Learn the basic process of a payday loan., Recognise the problems that can arise.
Step-by-Step Guide
-
Step 1: Evaluate your options.
Before you decide to accept a payday loan, seriously consider the other possibilities.People with bad credit will have a hard time finding a favorable rate of interest, but payday lenders balance this risk by charging exceptionally high interest.
Other options to raise cash include selling possessions, finding additional income sources, and taking out a traditional loan.
If you need a relatively small amount of money to pay off a bill, consider asking friends and family if you can borrow from them, rather than turning to a payday loan.
Treat a loan from a friend or family member just as seriously as you would a loan from a financial institution, and fully document it.You should also contact your local credit union.
Banks rarely lend small amounts, or to people with bad credit, but credit unions are often more sympathetic, and provide loans at much lower rates than payday lenders.Don't take out a payday loan unless you have absolutely no other option and are sure that you can pay the loan back on time. -
Step 2: Learn the basic process of a payday loan.
A payday loan is generally a small loan (usually $300 to $1000) that you pay off at your next payday, which is normally two weeks or a month after you take out the loan.
To get the loan, you fill out an application and give the company a check for the amount of the loan, plus the fee that they charge.
On the assigned payment day, the company will cash your check and your loan will be paid off.
For example, if you need a loan for $400, a company may charge you $100 in fees.
Therefore, you would write the company a check for $500 that they would not cash until the payment for your loan is due.Problems can easily arise when a large portion of your paycheck is going straight to the payday lender, prompting you to take out another loan to cover you until the next payday. , There are many problems that can arise if you find yourself turning to payday lenders to cover your bills.
As the loans are short-term and relatively quick and easy to get hold of, people often end up taking out small loans regularly, in part to cover the costs of the previous loan.
This cycle of debt can trap people into high cost loans and increasing indebtedness.You can get free debt and money advice to help you plan your finances and avoid this situation.
If you find yourself rolling over your debt, the costs will increase very quickly. -
Step 3: Recognise the problems that can arise.
Detailed Guide
Before you decide to accept a payday loan, seriously consider the other possibilities.People with bad credit will have a hard time finding a favorable rate of interest, but payday lenders balance this risk by charging exceptionally high interest.
Other options to raise cash include selling possessions, finding additional income sources, and taking out a traditional loan.
If you need a relatively small amount of money to pay off a bill, consider asking friends and family if you can borrow from them, rather than turning to a payday loan.
Treat a loan from a friend or family member just as seriously as you would a loan from a financial institution, and fully document it.You should also contact your local credit union.
Banks rarely lend small amounts, or to people with bad credit, but credit unions are often more sympathetic, and provide loans at much lower rates than payday lenders.Don't take out a payday loan unless you have absolutely no other option and are sure that you can pay the loan back on time.
A payday loan is generally a small loan (usually $300 to $1000) that you pay off at your next payday, which is normally two weeks or a month after you take out the loan.
To get the loan, you fill out an application and give the company a check for the amount of the loan, plus the fee that they charge.
On the assigned payment day, the company will cash your check and your loan will be paid off.
For example, if you need a loan for $400, a company may charge you $100 in fees.
Therefore, you would write the company a check for $500 that they would not cash until the payment for your loan is due.Problems can easily arise when a large portion of your paycheck is going straight to the payday lender, prompting you to take out another loan to cover you until the next payday. , There are many problems that can arise if you find yourself turning to payday lenders to cover your bills.
As the loans are short-term and relatively quick and easy to get hold of, people often end up taking out small loans regularly, in part to cover the costs of the previous loan.
This cycle of debt can trap people into high cost loans and increasing indebtedness.You can get free debt and money advice to help you plan your finances and avoid this situation.
If you find yourself rolling over your debt, the costs will increase very quickly.
About the Author
Maria Kennedy
Enthusiastic about teaching DIY projects techniques through clear, step-by-step guides.
Rate This Guide
How helpful was this guide? Click to rate: