One sure sign that the American economy is not where it should be is the preponderance of new stores offering payday loans for bad credit. Millions of Americans are literally living week to week, and many of them are not actually making it from week to week.
As a result, they make poor decisions with their use of credit and end up with scores near the floor, not the ceiling. Consequently, they are not able to secure loans from banks for their various needs, so they have to turn to other, more desperate measures to make ends meet.
What Payday Loans Approve Low Score Application
Payday loans for bad credit definitely exist. In fact, most of the lenders who will give you a payday loan do not care about your credit score, so they will not bother to check it.
That’s because the terms on the loan are severe enough that the lender is assured of making money even if fewer than 100% of the borrowers pay them back. Here are a few steps that you need to take to snag one of the payday loans for people with low credit scores.
- Bad credit or not, you need a job to get a payday loan
So, you are going to have to furnish some evidence of a regular income to be approved for most payday loans. Your chances increase greatly if you make at least $1200/month and can prove it. Take a few recent pay stubs and a copy of your last bank statement to prove that you have a payday coming that you can borrow against
- Aim low, not high on loan amounts
Borrow as little as you need to in order to make it to your next payday. Even if you can find 100 uses for a larger amount (and we all can!), limit your loan to a size that your next paycheck can absorb without too much difficulty.
- Check with your local lender
You might want to drive to a local payday loan business just to see how someone in the neighborhood competes on price. Some people prefer to actually meet the person with whom they are about to do business, and if you build a relationship with that person, you might get better terms down the road.
- Shop around online for the best deal
There are scores of lenders online who have jumped into the payday loan market. Online, you can quickly and easily compare interest rates, fees, service charges and other points of comparison.
Payday loans are widely available, even with bad credit; it’s up to you to do a bit of research and get the best terms possible so that you can be sure to re-pay it and start on the road to recovering (or establishing) a good credit rating.