What Are Bad Credit Payday loans?

Having bad credit can have a negative impact on your life as a borrower or loan applicant. Sudden unemployment and medical emergencies can leave anyone in financial chaos.Most lenders may judge loan applicants based on their year-old financial issues The first action to rebuild your financial state is to understand what bad credit is.

 

Bad Credit

What is bad credit?

Some lenders (either online or on-site) may look at your credit check score (and other contributing factors) when considering an instant loans application. A good example is the FICO scoring system – it ranges from 300-850 to gauge a loan applicant’s likelihood to repay the loan on time.

In line with this, FICO scores 620 below often fall into the bad credit score range – this will make it difficult for borrowers to get an approval from lenders that only depend on FICO to determine a loan applicant’s eligibility. 

Contributing Factors of Getting a Bad Credit Score

But don’t lose hope, many contributing factors play a part in the credit scoring process. Here are some of the following:

Missed Payments

FICO considers three elements of missed payments; they include:

  • How delayed the payment/s are
  • How long a borrower has gone without missing a payment due date
  • The total amount of missed payments

The credit reporting bureaus track these negative remarks with notations every 30 days (per month).

Delayed or Late Payments

For example, if a borrower took him/her three months late to repay a loan, the account would have a 90-day (3 months) mark on it.

The longer the borrower continues to miss paying on the due date, the more delinquencies have a stronger negative impact on your credit score than a one-time big-time 30-day delay.

There are times that we can’t keep up on the bills as they pile up. With that being said, many companies consider an account default if a borrower exceeds several months without making arrangements with the lender or settling the missed payments.

Collection notations

Some businesses and companies work with collection agencies to recover the financial loss, should there be any owed money.

If ever that happens, collection notations might appear on a borrower’s credit report.

Collection notations may remain on a borrower’s account even after paying your loan and debt. But, if a lender manually looks at a borrower’s credit report, they can see the improvement and progress towards being financially responsible.

Public financial records

Bankruptcy can stay on a borrower’s credit report for up to 10 years! Plus, it has a significantly negative impact on a person’s credit score. Any civil judgments and tax liens may also be listed on a borrower’s credit report.

On a lighter note, it is possible to remove some public records from the credit report once the borrower satisfies the judgment or the lien.

Foreclosure and repossession of property

Foreclosure indicates a defaulted, secured installment loan. Since the loan is backed by collateral (physical property), the lender takes the agreed property back, if the payments fall behind. 

With that being said, foreclosure refers to mortgages (houses); on the other hand, repossession refers to other types of physical property (this includes vehicles, gadgets, and the like).

In some places, borrowers may receive a deficiency judgment if the lender could not recover the loan amount after selling his/her property at an auction.

High Utilization of Credit Cards

A person’s utilization of credit loans is the ratio of their card’s maximum limit and outstanding balances.

If a person has a lot of maxed-out credit loans, the FICO scoring system indicates this as a negative factor. On a lighter note, you are in full control of this contributing factor. 

All you have to do as a borrower is to lessen your credit card balances and maintain a low utilization. Once you do, your credit score will improve over time.

How to apply for a payday loan online?

Applying for a payday loan online only takes a matter of minutes (even if you have bad credit)

Borrowers like you can simply apply for a loan even if you only use your smartphone or your laptop! In addition to that, loan decisions to either approve or reject an application is instant (100% guaranteed!)

For example, if a loan application is approved before 5:00 PM PT on a weekday, your loan funds will be automatically deposited (transferred) within one business day!  Although access to the loan funds are solely based on how fast the borrower’s bank processes the funds.

To apply for a payday loan online (even with bad credit), all you need to provide are the following:

  • Your full name
  • An active email address
  • An active mobile and/or telephone number
  • A bank account or a debit card that can accept e-transfers (electronic transfers)

So what are you waiting for? Apply for a payday loan now! Feel free also to read our blog posts about improving your credit score and repairing your credit report.

Bad Credit Loans Application

You might have already thought about getting a loan to get by. There are many different reasons why you would need a loan. You might need to pay some urgent house bills, a large bill from the hospital, an emergency, etc. However, your bad credit score might be stopping you from getting the loan that you need.

This can be quite troubling, especially if you need to have the money ASAP. There are actually many bad credit loans that can help you raise your chances of getting approved. Here are a few tips that you ought to know.

Bad credit loans and your credit score

One of the first things that you ought to do is to assess how bad your situation actually is. You might know that your credit score is bad, but just how bad is it? A lender would like to know what your score is or he will do a credit check on you.

It is always best to know what your credit score is to know what kind of situation you will be dealing with. If you have a subprime credit score, it should not be too bad for you when you apply for a loan. However, bad credit scores would have it a bit harder, depending on the lender’s requirements.

Bad Credit
Bad Credit

Alternatives to bad credit loans?

You can always try to borrow from a relative or friend if you are not sure about taking out a loan. This is usually a bit easier depending on what your situation is. However, this comes with more drawbacks than advantages.

You will run the risk of ruining the relationship you have with that person if you are not able to pay them back. Additionally, you do not want to feel like you are burdening them. So unless you need to borrow $20, you are much better off finding the best loan elsewhere for large amounts of money.

Is a credit union a good alternative for a bad credit loan?

Many people recommend getting a loan from a credit union. These places are usually preferred among people with poor credit scores, as there is a limit to the interest rate that the lenders can charge.

The lenders at credit unions are only allowed to charge 18% at most for their interest rates, which can be a safer option for you. However, depending on the type of personal loan that you will be getting, it could be a lengthy process.

You may have to wait for some time before you hear about your approval and for the money to come in. This is not an ideal choice if you are trying to deal with an emergency that needs urgent action.

Applying for a bad credit payday loan

If you are in need of a fast loan as soon as possible, you will want to get a payday loan. A payday loan is a loan that you apply for and within the same day, you will find out if you got approved for it or not. If you are approved, the money will be deposited into your bank account right away.

Bad credit payday lenders

These types of loans are very convenient for emergency situations that need to be attended to right away. However, you need to know where you should apply for one, as all lenders are not the same. Some have different requirements and others may not have the terms that you want.

Do you have direct payday lenders working with you?

One of your best bets is to visit our website. This will help you not only get the loan that you need but also learn lots of helpful information about loans. People with bad credit scores can still get a loan because we have many lenders working with us.

This means that there will surely be a lender who is willing to give you a loan despite your credit score, which means that you practically have guaranteed approval for a loan. This allows you to have the money that you need as soon as possible without having to worry about your credit score affecting your credibility as a borrower.

How do I get good credit in the first place?

Before you apply and if you already know that your credit score is bad, you ought to show the lender some reasons why you are credible as a borrower. This can help them trust you if they see some valid evidence that you have good money habits.

For instance, if you have been paying all your bills on time each month, you can show the lender your recent credit history. Additionally, if you have a landlord, you can ask him/her to write out a statement for you to show the lender that you have been paying rent each month on time and in full. This will help you raise the likelihood of getting approved.

It is important that you know what kind of loans are available and where you can get them. There are many loans and online loans to choose from, even if you have a poor credit score. They don’t all need to have sky high-interest rates too. You just have to know where to look and what to do to help you get approved.