The Basics of a Bad Credit Payday Loan

By: james dalton

A lot of people ?s future is determined by decisions that they make now. For millions of people who have bad credit issues, it can be attributed to poor decision making and planning. With their history in shambles it is often hard for them to receive loans, mortgages and other financial products. However they are not at a loss; This article will look at the bad credit loans and how it can benefit people.

Bad credit payday loans are very popular and they usually go by different names such as a payday advance. The loan is often a short term, unsecured loan that is usually repaid on a person?s next payday. These type of loans are often used for emergency purposes and for people whose credit it bad. As mentioned above the loans are meant to be short term and are often repaid in the next pay period. This is usually 2 weeks to a month. These types of loans are very small and the typical range in which a person can borrow the money is around $100 up to $1500. The interest rates associated with these loans are extremely high, due to the fact that they are giving unsecured money to someone with bad credit. The rates can vary from between 400%-900% a year.

The process to get this loan is very easy. You can either go into many of the payday advance stores that are around the city or you can do it online. Whichever one you choose, you will have to fill out an application form that will require you to give out some person information. The reason for filling it out is to ensure that you will qualify to get the bad credit payday loan. Most people usually get the loan regardless of their credit history. The money is deposited into the person?s checking account if approved.

What is needed for a bad credit payday loan are typically standard. To qualify for this type of loan you need to have either a job or income from welfare/social security. For people who are working their income needs to be above $1000. For individuals who are on welfare or social security, then they need to have payments of around $800 for the month. This is to ensure that you have the means to repay the loan.This check is done because the lender needs to be sure that the borrower can pay the money back. Aside from that you need to show that you are a US citizen and are 18 years of age. To receive the loan you also need to have a checking account that allows for direct deposit.

There are countless different ways to repay the bad credit payday loan. The common way is to have the payment deducted from the paycheck. People can also pay off the finance fee and a portion of the principle before it is due. It can be arranged to have the money that you owe, to be drawn from the checking account. Whichever way works for you, it is good to pay off the loan quickly as the finance charges are sky high.

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