When you have bad credit, getting a loan from a bank can be extremely challenging, but possible, provided that you have collateral that the bank may be interested in. Majority of conventional lenders prefer customers with good credit standing. Actually, this probably goes for all the lenders in the industry. There is a group of lenders however that specializes in bad credit loans, who have made bad credit their primary business. They are payday lenders, offering higher interest loans for a short period of time. Payday lenders are not the mainstream financial institutions. They are usually companies that are likely to exploit people’s financial hardship for profit. In poor economy with high unemployment rate and overspending, people with bad credit may have no-one to turn to for help. If it wasn’t for payday lenders, many people would be forced to turn to loan sharks or some illegal source, which would make their situation even worse. Payday lending may not be as good as most people would like it to be, but according to the report released by the Federal Reserve Bank of New York, payday loans may improve household welfare.
In conclusion, when you want to use payday loans, you must be very careful not to get trapped in a “debt-cycle”, where you will be forced to renew the loan endlessly until it’s paid in full.
Need Money Fast?
Payday Lenders in our network act immediately as soon as your application comes in. It usually takes less than an hour to process your personal details and make a decision. If you meet the basic criteria (having an income, bank account and be of legal age), you should be approved for a loan very quickly. Most applicants receive the funds in less than an hour of their application. In the worst case scenario, you receive a money transfer on the next business day.
How To Apply For A Bad Credit Loan
You apply by filling out a short application form available online. You don’t need to specify your credit ranking. The most important section is your income and banking info. Since payday loans are unsecured loans, lenders want to know if you have a fixed income that you receive every month or week. The amount of loan depends on your income.
No Fax, No Papers
The entire application process takes place online with no need to fax any documents. Some lenders may want to contact your employer.