A payday loan is a fast and easy method to get loan in a single day to meet your sudden, immediate expenses. It is possible to get these loans from anywhere in the United States and the ads even come to the door. The good thing about payday loans is that you can get them even if you have bad credit. Anyone can get them for any reason they want.
What is a Payday Loan?
A payday loan is basically a signature loan. This means that it does not require any collateral. All you need is a signature, and a couple of proofs of employment.
Unlike other loan services, payday loans don’t usually check your credit history. If you have ever been denied a loan, even then don’t hesitate to take the payday loan. However, if you have bad credit then make sure to get a payday loan from a lender who does report to the credit bureaus in order to improve your credit rating by paying the loan off on time.
Amounts for Bad Credit Payday Loans
A payday loan can be obtained for any purpose – and at any time. The amount for bad credit payday loan ranges from $100 to $1000 depending on your income and other criteria that the lending company requires. Mostly, you can get the money into your account within 24 hours but some companies can also make the money available within 30 minutes.
Interest Rates for Bad Credit Payday Loans
Different lenders charge different fees for the loans. Also, depending on the amount borrowed and the borrower’s income, the fee may vary from customer to customer. Generally, it is around $10 to $30 for every $100 borrowed.
Being a bad credit payday borrower, you should expect higher fee. Also, if you’re unable to payback in time, the fee may increase. If you have some time to get a proper loan, then you should not go for this as the interest rates are higher as compared to other loans. However, when it comes to getting money in a real hurry, this is probably about the fastest way to go.
Repayment of Payday Loan
Your payday loan will be repaid from your checking account. You have to give the lender your checking account number and sign a withdrawal permission giving them the right to withdraw the amount you borrowed with interest after about two weeks, at the time when you apply for the loan.
The option to rollover the money to the next two-week period is also available if you want. However, this will cause the interest to double and now you are at 60%.
This can obviously add up very quickly. This may stop you from borrowing more if you have payday loans that are passed the due date. Thus it is better to pay them back in time. Also, payday loans are like an advance pay, so you can’t keep them for long as the interest accumulated fast. If you want to take the loan for a longer time period, then go for some other type instead of payday loans.