man getting an online loan

Can You Get a Payday Loan if you have Bad Credit?

Yes, you can get a payday loan with bad credit. In fact, payday loans are a viable option for people with all types of credit quality. Unlike most loan products, payday loans don’t solely rely on your credit score. Let’s dive deeper into payday loan options for people with bad credit or poor credit and what you can expect if you pursue them.

why payday loans are popular

How Quickly Can You Get a Payday Loan?

Payday loans offer quick funding, making them a great option when you need cash immediately. Even if you bad credit or poor credit, you can apply for a payday loan with Advance America online and get your approved money within 24 hours. If you submit your application before 10:30 AM EST, you may be able to enjoy an instant decision and same-day funding.

How Much Does a Payday Loan Cost?

If you take out a payday loan, you’ll pay a $15 to $20 fee per every $100 you borrow. The state you live in will determine the exact limit of this fee. You’ll also be responsible for interest and fees for any late or missed payments.

Even though a payday loan does cost money, it’s an affordable alternative to overdraft charges, credit card late fees, and bounced checks, especially when you can repay the loan as scheduled.

How to Apply for a Payday Loan

Small payday loans online, even with bad credit, are a breeze to apply for. Here’s what you’ll need to do if you’d like to take one out.

Gather Relevant Information

Before you begin the application process, make sure you have the following information on hand:

  • Valid Social Security number
  • Valid and active email address
  • Active checking account
  • Source of income (such as a paystub)

Complete the Online Application

Go to the application form and complete these steps.

  1. Share your personal contact information.
  2. Provide your employment information.
  3. Provide banking details. (You’ll need both your checking number and ABA routing number. Prepaid cards are not accepted.)
  4. Sign and submit application.

Apply In-Person (if you prefer)

Advance America also accepts in-person applications for payday loans for people with all credit types – good, poor or bad credit. If you prefer an in-person application process, visit a local Advance America location and a knowledgeable loan specialist will assist you. Be sure to bring the following documents with you:

  • Government issued photo ID
  • Proof of active checking account
  • Most recent proof of income, such as a recent pay stub
  • Verification of SSN
  • Check (requirement varies by state)

Wait for Funding and Repay Your Loan

Upon approval, you should get the money that same-day or within 24 hours. Once you receive the funds, you’ll need to repay your loan. This will likely be when you get your next paycheck, within two to four weeks.

You can make payment on your loan over the phone, online or in-person at an Advance America location.

How to Improve Your Credit

The better your credit is, the more favorable rates and terms you’ll qualify for. Therefore, it’s a good idea to improve your credit as much as possible. Before you do so, visit AnnualCreditReport.com to check your credit report. Once you know where you stand, follow these tips to increase your score.

Pay Your Bills On Time

Even one late payment can ding your credit. Pay your mortgage, rent, utilities, car loans, and other bills on time, every time. Enroll in automatic payments or set calendar reminders on your phone so you don’t forget and miss a payment.

Keep Your Credit Accounts Open

Your length of credit history will have a direct effect on your credit score. Generally speaking, the longer you’ve had your credit accounts open and in good standing, the higher your score will be. If you can, try to keep your old accounts open, even if you want to avoid using them or have a zero balance.

Reduce Your Credit Utilization Ratio

The amount of debt you have divided by the amount of credit available to you is known as your credit utilization ratio. Since most lenders prefer a ratio of less than 30%, it’s important to reduce your ratio by paying off your balances early and spending less.

What Can a Payday Loan Be Used For?

Payday loans for consumers with good, bad or poor credit are small-dollar, short-term financing options that can be used for a variety of emergency expenses such as:

Car Expenses

If your car suddenly breaks down and you need new tires or another repair that only costs a few hundred bucks, a payday loan can help you out. Without it, you might not have reliable transportation to work, school, and other important places.

Groceries

In the event you’re low on cash flow and can’t cover your next grocery bill, you can use a payday loan. It can help you feed yourself and your family until you get your next paycheck.

Rent/Mortgage

A couple hundred dollars short on your rent or mortgage payment? A payday loan may give you the extra funds you need to take care of it. Just make sure you don’t depend on it for every rent or mortgage payment.

Notice: Information provided in this article is for informational purposes only. Consult your attorney or financial advisor about your financial circumstances.