It’s alarming, but 51% of Americans have less than 3 months’ worth of emergency savings. There’s a good chance that if an emergency happened tomorrow, you might not have enough money to cover it.
If that happens, what can you do? What if you don’t have a good support network where you can borrow money?
In that case, you can try a payday loan if you’re employed. These have very high interest rates, but you can get cash pronto, so it can be worth it.
This article will show you how to get a payday loan so you have money in a pinch.
Find a Good Lender
While there are brick-and-mortar payday loan lenders, there are lots online as well. So you don’t need to drive out to apply; just hop online!
Either way, you’ll need to carefully vet lenders. Check out reviews and pick someone that has a proven reputation.
Apply for a Payday Loan
- Active bank account
- Proof of income
You’ll also need to be at least 18 years old. Do note that some lenders will also ask for your Social Security number.
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What’s great is the rejection rate for payday loans is pretty low. Plus, they’re not credit-based, so if you have bad credit, do not need to worry.
Also, approval can be as quick as 15 minutes! Needless to say, it’s one of the fastest ways to get emergency money.
Get Your Money
If you’ve gone to a brick-and-mortar lender, they can dispense cash to you if you wish. Otherwise, they can deposit money into your bank account; the same goes for online lenders.
Again, this is a fast process. The money will hit your account in as little as 15 minutes, but in some cases, it can take up to 3 business days.
Why Do People Use Bad Credit Loans and How Can I Get a Loan Too?
The most common reason people use bad credit loans is that they cannot afford to pay back the loan. They will get a loan but they will not be able to pay it back as there are so many other expenses.
Repaying Your Payday Loan
You won’t have to worry about making a manual repayment since the loan is based on your next paycheck. When it comes in, it’ll be deducted and paid to the lender.
However, maybe you’ve gone into overdraft. In this case, you can extend your payday loan’s due date. However, this isn’t recommended for several reasons.
Not only will you get charged a late fee, but also one for an extension. Your bank might charge fees as well for failed payments.
Also, the longer you drag out your payday loan, the more you’ll be in debt. Interest rates can be as high as 500%+, so a huge cycle of debt can be imminent.
For this reason, we recommend you only use payday loans as a last resort. And if you do take one out, pay it off immediately.
Know How to Get a Payday Loan if You Need One
By knowing how to get a payday loan with bad credit, you’ll be able to get money fast if you’re in a tight spot. While they’re not exactly ideal, payday loans can still be a lifesaver, so long as you pay them off quickly.
So if you ever feel lost and panicked, breathe and take it easy. There are plenty of online payday loans that’ll get you cash in hand within hours!
Browse the rest of our blog to learn more about finances.