A payday loan is a small and short-term loan based on your income, with a high-interest rate as the price for borrowing. You will make an agreement with your lender, where they specify that you need to pay the loan when you get your paycheck. Depending on your local state laws, you can issue a payday loan online or with storefront lenders.
Payday loans are often used for covering basic needs when you are short of cash. Whether it is unexpected car repairs, buying groceries before a paycheck, or protecting your mortgage, you can get the needed funds quickly.
Can people with bad credit scores get a payday loan
People with bad credit scores can get a payday loan. This loan type is available for any credit score, so no need for hesitations. Hence, it is one of the good options that doesn’t depend on the individual’s credit score.
How to get a payday loan
A payday loan is one of the fastest ways to get a loan, with a convenient application procedure. The best thing is that you can apply online within a few minutes. There is no need for a strict and lengthy screening process, like with other loan types.
Here is the step by step process explained:
- Head to the online site of your preferred lender.
- Gather your personal information. Most lenders require basic info such as a paystub, social security number, and a valid email address.
- Access the online application form and enter your information. The form is simple, and you don’t need much time to fill it out.
- Submit your application and wait shortly for approval.
Upon approval, you will receive the funds to your account.
If you choose to head to their physical establishment, make sure to take all the needed documentation. Check the website to see which documents are required for payday loan approval.
How much money can you borrow with a payday loan?
The Payday loan allows you to borrow small amounts of money based on your income. According to the Consumer Financial Protection Bureau, you can borrow up to $500, which must be covered on payday. However, I have in mind that the state will impose specific limitations regarding the amount. Make sure to check with the local authority to get to know more about the payday loan limits.
Best lenders for payday loans
There are so many lenders offering payday loans on the market. You need to check their offering and see if it suits your needs. Make sure to shop around and find the best offers. We picked the best lenders for payday loans:
Advance America is one of the elders that accept online applications. The process does not take more than 5 minutes, and you will get feedback shortly after. When you get approved, you can receive the money on your account in a maximum of 24 hours. If you head to their physical establishment, they will pay in cash instantly. Also, they will tweak the payment terms to your payday.
Magical Credit Loans
The application process takes a couple of minutes, and you can get your money within 24 hours. This online lender guarantees privacy and keeps your private information secure.
The lender can provide you with funds within two business days and offers low rates. Also, you can change the payment date according to your needs. However, you need to be careful with their late fees.
LendingTree is a reputable online lender but also offers plenty of resources for financial education. This will give you enough information on how to improve your current situation.