It is possible to get a payday loan with bad credit, especially through the use of online lenders and brokers. Unlike traditional bank loans, Pheabs accepts loan enquiries with all credit histories allowing everyone to find the money they need to tide them over until payday. This means that you should still submit a form with us if you have been rejected for a bank loan because of bad credit. Everyone comes across financial pitfalls occasionally, but a payday loan can give you the lift needed to get back on your feet.
According to recent statistics, around one-third of Americans have bad credit, which is defined as a FICO score of 669 or below. This means that there is a significant demand for loans for people with bad credit, but it also means that lenders may be more cautious and selective in their lending practices. In this article, we explore how to get a loan with bad credit, including the amount you can borrow and the types of loan you might want to consider.
How Do I Submit An Enquiry For a Bad Credit Loan?
Whatever your credit rating, you can use Pheabs’ completely free online process. Submitting a loan enquiry for a payday loan will not have an impact on your credit score. With Pheabs, you can borrow from $100 up to $35,000 and choose to repay your loan from 2 weeks to 5 years. The loan request process is simple and efficient:
- Fill out the short online enquiry.
- Wait for us to connect you with the lender best suited to your needs.
- Get the cash in your account.
This may be a sensible choice if you are facing a temporary financial problem. Whether you are facing car repairs, hospital bills, or any other emergency, a payday loan may be an excellent way to get cash quickly.
Am I Eligible For a Bad Credit Loan?
Pheabs makes it easy to find a straightforward same-day loan in one lump-sum and borrow money today. There are only a few simple requirements to be eligible. Firstly, you must be a U.S. resident, and you have to be at least 18 years of age. You would also need to have a consistent income with earnings at a minimum of $800 per month. Lastly, you are required to have a checking account that your payday loan can be deposited into.
How Much Can I Borrow With Bad Credit?
Lenders may be more cautious when lending to someone with bad credit, so you may be limited to smaller loan amounts. In some cases, lenders may require collateral or a cosigner to approve a loan.The amount you can borrow with bad credit will depend on several factors, including:
- The lender’s policies
- Your income
- Your expenses
- Your exact credit score
- The value of your collateral (e.g. your home)
- Your cosigners
Why Choose A Payday Loan If You Have Bad Credit?
If you are considering a payday to cover an unexpected one-off expense, you don’t need to worry about the loan affecting your credit. It is important to remember that payday loans are meant for cases of cash emergencies, not shopping or frivolous spending. Unlike more traditional loans, a payday loan is designed for short-term use. You should also only ever borrow money that you know you will be able to repay. If you need to borrow a large amount of money or are looking for a long-term loan, a payday loan might not be the best option.
How Can I Avoid Scams When Applying for a Loan With Bad Credit?
To avoid scams when applying for a loan with bad credit, be wary of lenders who require upfront fees or payments, or who ask for your personal or financial information over the phone or via email. Look for lenders who are licensed and regulated, and check their reputation with the Better Business Bureau or other consumer protection agencies. Read the loan agreement carefully before signing, and make sure you understand all of the terms and conditions.
Pheabs does not charge you at all to get a quote. Simply fill out our online form and receive a fast, unbiased quote now.
How Long Does It Take To Get a Loan With Bad Credit?
The time it takes to get a loan with bad credit will depend on several factors, including:
- The lender’s policies
- Your application materials
- Your state
Some lenders may be able to approve and fund a loan within a few days, while others may take several weeks. It is important to apply for a loan well in advance of when you need the funds, as the approval process may take longer than expected. However, borrowers using Pheabs have received cash in their bank accounts within 24 hours on a weekday.
How Do I Improve My Chances of Getting Approved for a Loan With Bad Credit?
There are several steps you can take to improve your chances of getting approved for a loan with bad credit. First, make sure you are applying for the right type of loan for your situation. Certain types of loans with low interest may reject applicants with bad credit scores, but you will have more luck with secured loans or payday loans. These types of lenders of ten do not even consider your credit score.
Next, try to improve your credit score by doing things such as:
- Paying bills on time
- Paying down debt
- Disputing any errors on your credit report
- Finding a cosigner who has good credit
Can I Get a Loan With Bad Credit Without a Cosigner?
It may be possible to get a loan with bad credit without a cosigner, but it may be more difficult. Lenders may require a cosigner to provide additional assurance that the loan will be repaid, especially if the borrower has a low credit score or a history of missed payments. However, there are lenders who specialize in lending to borrowers with bad credit. These lenders typically offer products such as payday loans, which must be paid back within 2-4 weeks.
What Are the Consequences of Defaulting on a Loan With Bad Credit?
Defaulting on a loan with bad credit can have serious consequences, including damage to your credit score and the possibility of legal action. If you default on a secured loan, the lender may repossess the collateral used to secure the loan.
If you default on an unsecured loan, the lender may send your account to collections or take legal action to recover the funds. However, before any action is taken your lender must show a willingness to work with you to resolve your debt issue first. This could include making a payment plan to make repayment more manageable for you.