Loans for Small Needs
There are times when we only need a little bit of help to get through a crisis. It could be that there is an upcoming bill but there is also an unexpected family expense you have to deal with. You think that borrowing from a family or friend is not an option for you and getting a bank loan may also take too long to solve your urgent need.
You only need a small amount of money and you want to pay the loan back right away when your next paycheck arrives. For such situation, loans for people with bad credit, such as payday loans or cash advances can get you through.
Bad credit loans, such as payday loans, are not designed for everyone and for every situation so it is necessary for you to be discerning of your financial circumstance before you apply for one. As with getting any type of loan, you need to determine if getting a payday loan is truly worth it and will help you out of your financial problem instead of causing more problems in the future.
Payday Loans Defined
These loans are called bad credit loans because you don’t need to have a good credit score to get approved for a payday loan. A payday loan is a small scale, short-term loan designed to help you deal with small financial emergencies, such as to pay a bill, to fix a car, or to pay for an extra medical bill not covered by your insurance. Payday loans usually offer from $100 to $1500, although you may also be able to borrow more depending on your salary.
Payday loans are unsecured loans so you don’t need to present collateral to get them. But because of lack of security in issuing the loan, payday loans lenders charge higher interest rates, flat fees and penalties may apply for late payments.
Benefits of Short-Term Bad Credit Loans
With these loans, you don’t have to appear personally before a loan agent to get your loan application processed. Most payday loan lenders operate online, although you still have the option to file your loan application personally if that is what you prefer.
Bad Credit Approval
Payday loans lenders do not totally disregard your credit score as one of the criteria for approval, but you may be able to get approved for a payday loan if you can show financial capabilities to pay your lender back. So as long as you can demonstrate that by showing your lender a proof of your income, your bad credit score will definitely not hinder you from getting approved for a payday loan.
Pay the Loan Back Right Away
Payday loans are short-term loans that are payable in 15-30 days, allowing you to settle the loan right away. This is designed for those who are looking for a quick, accessible loan that is not locked in flat interest rate spread over a long loan term.
Considering the loan features above, you can easily determine whether payday loans are right for you. If your financial problem is small and temporary in nature and you have the capability of paying a small loan in no more than 30 days, then getting a payday loan could be right for you.