Payday loans, also known as check advance loans, deferred deposit loans, or cash advance loans, are short-term loans taken out by a borrower to resolve emergencies between paydays. Their repayment periods are characteristically short (up to one month), and their interest rates are high. One of the biggest reasons they are a popular option is how easy and fast they are to get. You can secure one without collateral or cosigner in some cases. The best online payday loans are from iPaydayLoans, WeLoans, US Installment Loans, CocoLoan, or Fast Title Loans. Via these services, you can get payday loans up to $5,000.
Steps To Get A Payday Loan Online
The process of obtaining a payday loan online isn’t rocket science. There’s nothing to it, really; just do this:
- Perform regular self-assessments. Check your credit score to assess your financial situation
- Check for errors in your credit report and make corrections to improve your credit score
- Calculate and estimate a repayment plan to see if you can afford the loan
- Apply for a loan through an online loan broker or get quotes from a direct lender
- Choose an offer that’s tailor-fit to your needs
- Get funded
Can I Get Payday Loans With Bad Credit?
Before you can conclusively say that you have bad credit, it is assumed you’ve already checked. If you are yet to, you can check now through your online banking app/website. Bad credit means your FICO score is less than 579. Your credit score is still considered fair if your FICO score is between 580 and 669.
With fair credit, you still have many options to explore. In contrast, bad credit makes you a high-risk borrower and significantly handicaps you. But that’s not to say you can’t still get payday loans with bad credit. If you have proof of solid repayment capacities such as stable sources of income or legit employment status, there is a big chance to get your loan request approved, but you may have to cede to higher interest rates and, depending on the lender, may be required to include a cosigner during the application.
Payday Loan Alternatives
Although payday loans can come through for you when you need money urgently, they are not recommended in all cases because of their interest rates. Here are some alternatives to consider as well.
Personal Loans
Personal loans are usually paid in installments, and over a longer period of time as well, meaning that they are more convenient and more affordable for most borrowers. The interest rates charged on personal loans are usually lower than those on payday loans. You may also qualify for higher loan amounts if you applied for a personal loan than you would if you applied for a payday loan.
Paycheck Advances
If you work in a company where this is possible, you may ask your employer to advance your paycheck. This is usually done for free, and approval is at their discretion. The terms of the agreement vary and should be agreed upon by the employer and employee.
Seek Financial Advice From A Credit Counselor
It may be time to see a credit counselor if you are already too sunk in debt. A credit counselor can help you manage your finances better by showing you how to create a debt management plan. The latter involves negotiating lower interest rates and payment deadline extensions with your creditors.
Borrow From A Friend Or Relative
This is a zero-interest way of getting cash urgently. You can ask a friend or loved one to help you with some cash when you are cash-strapped. Although zero-interest, you run the risk of ruining your relationship with them if you fail to pay back the loan as agreed.