Payday Loans

How To Qualify For Bad Credit Payday Loan?

When FICO score is low, it becomes very difficult to qualify for further credit – be it a personal loan, a credit card, a mortgage, or an auto loan. But, this rule does not apply with . These cash advances that are given for a very short period of time carry some lucrative benefits. If you are in an emergency financial situation where you need some instant cash, you just cannot resist the temptation to sign up for these lending programs. Though the eligibility criteria are very simple, there are still plenty of things that you must keep in mind before you borrow these loans.

No Credit Checking

If you are suffering from bad credit and are looking for a loan, you just cannot get better news than this – bad credit payday loan is a lending program that does not require checking your credit history. The eligibility requirements are just limited to a few basic points that include a minimum age of 18, US citizenship, a decent employment record (in general, your current job must be at least three months old), and a bank account where you get your salary credited every month. If you meet these 4-point qualifying criteria, your application for these loans will get instant approval regardless of how bad your credit is.

Rate Of Interest

So far, there seems to be no catch at all in the process. The lenders look like God-sent angels. The only time when you will grow wrinkles of worries on your forehead is when you look at the rate of interest – it’s unusually very high. If you just look at the amount of interest, you may not get the true picture quickly. For example, if a bad credit payday loan charges $15 of interest for every $100 you borrow, it may look like a fair deal considering the benefits these loans have to offer. But, if you calculate the rate of interest, you may be surprised to find out that it is actually a whopping 180% per annum. If you borrow $1000 at this rate, you will have to pay $150 in interest only (for one month).

If you must borrow these short-term easy cash advances at unusually very high rate of interest, the only word of caution that you should keep in mind is that missing the due date often results in a viscous, never-ending cycle of debt. If you do not repay the dues in time, you are very much likely to fall in a serious debt trap. On the other hand, if you intend to on its set due date (which is just a couple of weeks ahead, on your next payday), these loans can be a good choice, but again, only if there are no better alternatives.

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