Maybe it’s not the first time you are hearing about payday loans. Of course, you might know that they are good if you want to cater for an emergency need as soon as possible.
The good thing that draws millions of employees to take these loans is that the lenders don’t bother with your previous credit history. Instead, you only prove that you have a job.
Indeed, after the Coronavirus pandemic visited the globe, people lost their jobs due to company shutdowns. As a result, those who had loans had to stop paying them since they had no more income. And that resulted in bad credit scores, which would later push them to take these high-interest loans.
What is Bad Credit?
Most lenders use the credit score in Experian, Equifax and Transunion to determine your creditworthiness before they can trust you with a loan. In addition, to get a loan with lower interest rates, you should have a good credit score.
The three credit bureaus use the FICO score to determine your overall credit score. The FICO score scale starts from 300 to 850. The lowest mark represents the poorest credit score, and the highest rank is for excellent credit scores.
If your credit score doesn’t exceed 580 on the FICO scale, it will be tough to get financial help from banks and other financial institutions. However, there is a chance to access a payday loan for bad credit regardless of your credit score.
What Are Payday Loans?
If you’ve ever thought about taking a short term loan that you will pay on your next payday, that must be a payday loan. Most people learn about payday loans whenever they hear about their high-interest rates.
Payday loan lenders don’t bother with your lousy credit score. All they need is a confirmation that you will afford to repay the loan.
In addition, some payday loan lenders request the borrower to write them a post-dated check before approving the loan. The check usually matures after two weeks during your payday. And that’s where we get the name payday loans.
However, some loan brokers like the Loan Princess will link you to potential lenders who trust you enough to give you several weeks to clear your loan.
Payday loans for bad credit usually come in handy with your emergency need. It’s so simple to apply and get a payday loan as long as you have a job. Therefore, it will be easier to get these short term loans to sort out an immediate emergency needs.
Requirements for Getting Payday Loans for Bad Credit
As much as payday loan lenders do not disturb you with credit scores, they don’t give you loans blindly. They do a thorough background check to see whether you can afford to repay the loan. No one wishes to lose their money anyway.
Therefore, you will need:
- A valid address
Of course, every lender would like to work with a person they know their physical location. That helps whenever you default, and the lender uses debt collection agencies to get their money back.
- It would help if you were employed.
You don’t need any income source to get payday loans for bad credit; instead, you need a job with a reliable payment pattern. This works for the lenders if they need post-dated checks.
In addition, some lenders still need you to have an income of more than £1000 before approving your loan. The lenders also use your income level to determine the amount of loan to give you.
- You should be a resident where payday loans exist.
As you may know, some states do not allow the operation of payday loan lending because they believe the lenders exploit the borrowers. For instance, you must be a UK based citizen before getting a payday loan through the Loan Princess broker.
- Have a bad credit score
Of course, it will not make sense if you get a payday loan yet you have a good credit score. Payday loans have very high-interest rates because the lenders claim to be dealing with high-risk clients.
Therefore, these loans should be your last option if you need a bad credit loan.
Trusted Source of Payday Loans for Bad Credit
With the continuous growth of financial technology, many financial businesses are meeting with clients via online sites like social media. Therefore, with the freedom of marketing and expression, it’s easy to land in the wrong hands if you are not careful.
That’s why we have the Loan Princess broker willing to help you get the loan you need with just a few clicks. With Loan Princess, you will get access to genuine lenders who can give you more than one month to pay off your payday loan.
The Bottom Line
Before you get a payday loan for bad credit, ensure that you can repay it. If the lender needs the total amount after two weeks, ensure you take a little amount that you can repay in whole.