Friday, January 6, 2017

Can I get payday loans with bad credit?

8:19 AM Posted by Unknown , , No comments
The answer is yes, There are lenders which offer loans to borrowers who are deemed a credit risk in exchange for higher interest rates. So although it's convenient to borrow money from such loan providers, bear in mind the cost. 
As i know that the basic loan process involves a lender providing a short-term unsecured loan to be repaid at the borrower's next payday. Typically, some verification of employment or income is involved (via pay stubs and bank statements), although according to one source, some payday lenders do not verify income or run credit checks
Individual companies and franchises have their own underwriting criteria.
In the traditional retail model, borrowers visit a payday lending store and secure a small cash loan, with payment due in full at the borrower's next paycheck. The borrower writes a postdated cheque to the lender in the full amount of the loan plus fees. On thematurity date, the borrower is expected to return to the store to repay the loan in person. If the borrower does not repay the loan in person, the lender may redeem the cheque. If the account is short on funds to cover the check, the borrower may now face a bounced check fee from their bank in addition to the costs of the loan, and the loan may incur additional fees or an increased interest rate (or both) as a result of the failure to pay.
In the more recent innovation of online payday loans, consumers complete the loan application online (or in some instances via fax, especially where documentation is required). The funds are then transferred by direct deposit to the borrower's account, and the loan repayment and/or the finance charge is electronically withdrawn on the borrower's next payday.

Although the answer is yes, however, most online payday lenders carry out credit checks in their application process to ensure the suitability of their candidates. Payday loan issuers need to ensure that their customers meet their repayments and so, lending to those with high credit scores makes good business. 

However, not all payday lenders run credit checkswhen making a decision about a loan applicant so if you have bad credit there is hope. Instead of credit checks, some lenders ask for pay slips as a proof of employment and income.

But if you have bad credit and are looking for a cash advance, there are indeed alternatives to payday loans. Logbook loans offer cash advances that are secured on your car as collateral. There is also peer-to-peer lending where an individual provides you with cash up front with their own set of terms and agreements.

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