Should You Get A Bad Credit Payday Loan?

Should You Get A Bad Credit Payday Loan?

by Terry Edwards

If you are like most people, you have probably found yourself in need of cash to take care of an unexpected emergency. It may be for car repairs, medication for an illness, a major appliance that has gone on the fritz or any other number of problems that always seem to rear their ugly heads at the worst time. So there you sit, wondering where you are going to get the cash to take care of the problems. Your credit isn't the greatest so you know that getting a personal loan from the bank is out to the question. So what are you going to do? Keep reading for a simple solution to your cash flow problems.

If you need cash in a hurry, you may want to check into a bad credit payday loan. There are dozens of payday loan companies all over the Internet and in just about every town in America. Cash advance businesses have become more popular in the recent years because they offer a quick and easy fix to your cash flow problems. And best of all, they work with people who have all types of credit issues.

But before you go skipping off to the local bad credit payday loan place, take this into consideration. Yes, you can get a short term loan without a credit check, but it can be expensive. Keep reading to discover how these payday loans work.

A payday loan is just a cash advance that you will receive against your future earnings. Before you can borrow money, you are required to have a job and a checking account in good standing. The first time that you apply for a loan, you will be required to provide proof of a checking account such as a bank statement. You may also be required to provide proof of address with a utility bill that is in your name.

You can apply for a bad credit payday loan at one of your local cash advance businesses or you can apply for one from home online. If you do the online cash advance, be aware that you will probably be required to fax the proper documents to the loan business. An online payday business will wire the money directly to your checking account, usually within a day. If you are using your local payday loan business, then you will either receive cash in hand or it will be deposited into your bank account that day.

But you have to agree to pay these loans back with your next paycheck. Most payday loans are good for two weeks at which time re-payment is required. Keep in mind that since this is a no credit check payday loan, you are going to be paying a high interest rate on these loans. The usual finance terms that they charge are $15 per $100 borrowed. So for instance, if you get a $300 cash advance, you will be required to pay back $345 from your next pay check.

With that said, a bad credit payday loan really can be a lifesaver when you are in dire need. But you have to be very careful not to fall into the payday loan trap. This is where you are borrowing and paying back every two weeks because you can't afford to pay off and not get another one. This type of loan should only be used for a short term fix and not as a way of survival on a long term basis.