Getting a bad credit payday loan is usually an easy process, and there isn’t a credit check when it comes to payday loans so you don’t have to worry about the bad credit part, however there a re a few things that you should know about payday loans in general that will help you decide if this is a route that you truly want to pursue or if getting your money some other way would work for you, because it is easy to get into payday loans and sometimes it can be very hard to get out. You should at least have all the facts about bad credit payday loans available before you decide whether or not to get one.
First of all, let’s discuss how much a bad credit loan payday costs. In some states, the payday loan can cost as much as four hundred percent annually. This relates to a lot of money depending upon how much you are borrowing. For instance, if you borrow $500 then you interest will be $2000 per year which breaks down to a payment of about $100 or so by the time the loan is due, which is usually on your next payday. You have the option of extending the loan for another two weeks and just paying the interest if you choose.
Payday loans for bad credit are also bad because they don’t do anything whatsoever for your credit. If you don’t pay them, the corollary is not true however, many payday loan places will report to your credit if you don’t pay the loan and will chase you incessantly, calling friends and family members so that they can collect. But they don’t report your good payments so making your payments on time will not do any good for your credit which is one of the reasons that I recommend avoiding these type of short term credit loans.
If you decide to pursue the payday loan for bad credit then you will need to provide them some information. One of the things that they ask you for is your job information including your employer and your last 2 – 4 pay stubs. They may also call to verify your employment so be prepared for that. Beyond that, you will need a checking account that is in good standing, that is still open at the time that you apply for the payday loan, because you will be writing a check to them for the amount of the loan plus the interest.
They won’t cash the check if you pay the loan but instead will return it to you upon complete repayment of the loan. However, there is one trap that you want to be aware of so that you don’t end up deeply in debt with a payday loan company. They may offer you the chance to pay just the interest on the loan. Don’t do this. Pay it off, and don’t fall into the trap of paying the interest only. This will get you into a cycle of always having to make a payment in the amount of four hundred percent interest or so and you will end up paying a whole heck of a lot of money for your payday loan.
