Many people who have bad credit or no credit or who have filed for bankruptcy find it difficult to apply and get either a short term or a long term loan.
Online payday loans are short term bad credit loans that give people the chance to borrow money in spite of their credit history. However, there are things you should and should not do if you want to be able to get a short term bad credit loan.
Keep in mind that once you apply for your loan a lot of cash advance companies turn to Teletrack and not to credit reporting agencies such as TRW, Experian, or Equifax to look at your history. Teletrack gives them information about your checking account status, if you have any NSFs, your banking history, and if you have any outstanding payday loans.
What To Do To (And Not to Do) To Get Short Term Bad Credit LoansIn order to get your loan and not be denied you must provide true and accurate personal information on your application.
Also, if you want to get this loan or any loans in the future you should:Never apply for several payday loans from different payday loan companies.
If you do you will have more problems getting a loan in the future because loan applications are reported to payday lenders and it can make it harder for you to be granted a loan the next time you apply for one.Because the interest rates for payday loans is so high (anywhere from about 10% to 30%), most people search the Internet and compare rates at few payday loan companies before they submit an application to the one with the lowest rates.
When you apply for a loan at an online payday loan website the information is immediately forwarded to the lender. They review your application and if they find the information is true and that you meet the minimal requirements you will get an email that notifies you that you are approved for your loan.
How Much Can You Borrow?
The lender decides how much they will lend you. Although the range is usually for $100 to $1,500, the amount depends on a number of criteria. These include your monthly income, how long you've been at this job, if your paycheck is a directly deposited into your bank account (they prefer that it is), if you have any outstanding NSFs, and if your bank statements are available.
Most first time applicants usually will be lent a lower amount than a repeat customer who has a track record with the payday loan company.
Some payday lenders permit frequent borrowers to extend their loans beyond the next payday. However, it will cost you more interest and you will probably have to pay additional fees if you do that.
Payday loans can be very helpful but most people get them only in urgent situations because of the high interest rates. But it is good to know they are available to you if you need them.
