Your financial situation is really bad, and you need some money to pay your medical bills. Your credit card limit is also off, and you are desperate. Do not take stress, as bad credit loans are the products made for you. They have been designed for people in need of money.
The bad credit loans have an addition facility of paying in installments. This will help you to pay the loan and also use the cash for your emergency needs. Direct payday lenders operate with different set of rules than a bank and hence can provide loans to people with bad credit history. They will just check your affordability of repayment. A payday loan is just a stop-gap arrangement and you will need to increase your income to get out of the debt crunch.
Questions to ask before taking a payday loan
The payday loan lenders have loans designed for people facing financial difficulty. You just need to check with the answers to these basic questions.
- 01Is online application available? – Applications for the bad credit loans can be submitted online. This requires no physical paper work. Just provide a copy of bank statement, employment letter soft copy and address and identity proof. In most cases the lender will check your credit history of 90 days only. So people with past bad credits will have no problem with getting the short-term loan. If you are having bad credit history within last 90 days then you will have option of paying in installments.
- Is the lender taking Instant decision?– The best part of the payday loans is that you will get a response within minutes of application. If the lender takes longer than an hour, your chances of approval are a minimum.
- The speed of cash receipt – The payday loans reach your account within 24 hours. It helps in emergency situations as you do not have to wait for the cash.
- Is the repayment smooth and easy? – Most of the lenders provide direct debit as a way to repay. You should check for installment facility if you are unable to pay in one go. The lender will charge a bit more but will most probably provide you with easy installment facility. This is really convenient for people with low-income.
- Is there danger of long-term debt? – You can ask for extension of payment date at a little cost. But do not prolong the payment as the rate of interest is high. The prudent option is to try to pay on time. It will also improve your credit history, and improve your financial health.
Before taking any loan compare interest rate online. Choose only the credible lenders even if they are charging a bit more. There are many scams running in the name of payday loans who will steal your personal information. So be careful while filling the online application form. Get a safe and fast payday loan and do remember to repay on time.