Payday Loans for Bad Credit

Payday loans are great for people with bad credit. They’re easy to apply, processed quicker, and there’s a chance you’ll get an instant approval from the lender. It’s great for covering expenses until your next payday!

$2,500
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Sherine ChebetFinancial Writer

Jul 27.2022. Filed under: Payday Loans Hub

What Are Payday Loans for Bad Credit?

If your credit falls into the bad credit range, then you’ll likely be seen as a credit risk by most lenders and banks. This is where payday loans for bad credit come to rescue. It provides people with bad credit the opportunity to get a quick fund to cover their expenses while they’re still waiting for their next paycheck.

Your credit score can be seen from your credit report. And if your credit score falls between the range of 350 and 579 on a 300 to 850 scale, then you fall in the bad credit range. Bad credit can make it difficult to get loans from traditional sources since they take credit history seriously.

If this is your case, payday loans for bad credit is a great option. Payday loans for bad credit lenders don’t entirely rely on your credit score, they’ll also look at your capacity to pay back when it’s due. Aside from these, one of the best strengths of payday loans is that they understand the need for immediate cash. Thus, you can get the money you need sooner.

Can I Get a Payday Loan with Poor Credit History?

Yes, you can.

There are many reasons for a poor credit history. It could be due to failure to pay on time, or just entirely a bad payment history. These factors can pull your credit history down, making it difficult to apply to traditional loans when you need it. However, payday loan lenders accept your loan application despite the bad credit history. In addition to this, they also have less strict requirements on your credit.

It is suggested that you check the loan eligibility requirements of payday lenders and find out if you can satisfy them. If you’re a U.S. citizen who is at least 18 years old, have an active bank account, a valid ID, and a reliable source of income, you are eligible for an online payday loan.

It is rather challenging to find a suitable bad credit lender, contacting a loan broker like WeLoans will save you time as we have several trusted payday lenders for you to choose from. Our partner lenders don’t entirely rely on the borrower’s credit score, they consider other factors as well, especially your repayment ability.

How Does WeLoans Compare?

Why Use Us?
How much am I allowed to borrow?Up to $35,000No hidden fees or charges
What are typically the loan terms?Up to 36 monthsVarious repayment options
Do lenders check my credit?Yes Soft search only
Do lenders take bad credit?YesBad credit considered
Chances of approvalGoodQuick turnaround
How to apply?Apply onlineNo paperwork needed
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Pros & Cons of Getting a Payday Loans for Bad Credit

Thinking of getting a payday loan for bad credit? Take a look at its pros and cons and see if you really need it.

Pros:

1. Easy to process

This is the biggest advantage of bad credit payday loans. They’re easy to apply as there are many online lenders and brokers that only require you to fill out a simple Q&A form.

2. Only runs a soft check

Payday loan lenders will mostly only run a soft check which will not hurt your credit. It also increases your chances of getting a payday loan.

3. Quick funding

If you’re approved, you’ll most likely immediately receive your funds as early as the next business day. It’s definitely a lifesaver for your typical financial emergency moments!

Cons:

1. High fees

Payday loans are efficient for immediate cash needs, but their biggest disadvantage is the high fees. Before getting a payday loan for bad credit, make sure you’ve checked its interest rates and accompanying fees.

2. Repayment terms

Payday loans are short term loans that you need to pay by your next paycheck. This means the repayment terms are quite demanding to comply. In some circumstances, you might end up with a loan rollover and be stuck in a cycle of debt.

Remember, before getting a loan, make sure you’re applying for a loan that could help you, not burden you.

Steps for Getting Online Payday Loans with Bad Credit

Too busy to process your loan on-site? Don’t worry, you can easily process your loan online with just three easy steps:

1. Fill out a request form

For a smooth online application, prepare your necessary information on hand such as your social security number, valid IDs, email address, checking account, and the amount you want to borrow. Then proceed to access the application form. Simply fill out the form with the required information. We follow the information safety protocols, your information will remain private and confidential.

2. Choose an offer

Once you’ve submitted the form, WeLoans will then connect you to several of our trusted partner lenders. The partner lenders will then send their offers along with their interest rates and terms.

3. Get your money

Once you’ve read the loan terms and have agreed to them, the fund will then be sent to your account as soon as the next business day.

How much would you like?

$2,500
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Can a Payday Loan Help Me Build My Credit?

It is a common question to ask, but no. Since payday loans have higher interest rates and fees, it is more prone to mismanagement. If you don’t properly manage your payments, you might find yourself caught in a debt trap. This is why payday loans are advised to be used as a last resort. If you still have some sort of financial allowance, it’s preferable to avail another loan instead such as an alternative loan or a small personal loan.

However, if it is indeed your last resort, then it’s better to map out a repayment strategy in advance. You can do this by taking note of your due dates and make it a goal to pay them before, or on time. If you successfully paid off your payday loan, you should take steps to improve your credit score by repaying debts on time, and maintaining a good payment history.

How Do I Improve My Credit Score?

There are a lot of benefits if you have a good credit score, but mainly the main benefit is that loan lenders will see you as a low risk borrower, increasing your chances to get a loan with better rates. A good credit history implies you manage your finances and credit well that you make your repayments on time.

Here are the things you can do to improve your credit score:

Provide updated and accurate information

Every lender has a different way of calculating your credit score, but they definitely factor in your information. They will look at your spending lifestyle and habits, as well as your location movement pattern.

Avoid moving your location

It’s inadvisable to move a lot since lenders will see it as an inability to pay rent. Remember, lenders like to see stability. A stable address means you manage your finances well and can pay rent on time.

Maintain a low credit utilization

In terms of handling your finances, maintain a low credit utilization preferably below 30%.

Build and maintain a long and healthy credit history

It’s a nod for lenders if the borrower has a long and healthy credit history. Show them you’re able to manage multiple credits and still make payments on time. Lastly, use a credit builder card to improve your credit rating.

FAQs

What is considered bad credit?

According to the statistics, you have bad credit if your score falls between the range of 350 and 579 on a 300 to 850 scale. When you are in this range, most banks and lenders will see you as a lending risk.

What's the easiest loan to get with bad credit?

The easiest loan to get with bad credit is a secured loan. This is because you have to provide some form of collateral, which means lenders will be more confident and will be willing to lend you money.

How much can I borrow?

It depends on various factors. But with our platform, you can borrow up to $5,000 for payday loans, cash advances, and Installment Loans. While you can borrow up to $35,000 for personal loans.

What can payday loans bad credit be used for?

Payday loans for bad credit can be used for financial emergencies such as car expenses, medical bills, and home repairs. It can also be used to settle some personal bills such as rent or mortgage payments, and even for your grocery needs.

What are some alternatives to payday loans?

If you find payday loans too risky due to their higher fees, you may choose to avail other types of loans. Other loan alternatives include title loans, installment loans, and personal loans. If you would also want a short-term loan similar to payday loans, you may choose to opt for online loans, credit unions, banks, or pawn shops.

Ready To Get an Online Payday Loan For Bad Credit? Apply Today!

Loans should help you lessen your worries, not burden you even more. WeLoans is ready and committed to help you! Fill out the request form and allow WeLoans to help you connect to one of our long list of trusted lenders in our network. Break free from your financial worries today!

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