Are you getting frustrated applying for payday loans online? If so, then it might be because you have bad credit. Many people complain that if they had good credit, then they wouldn’t need the loans, and yet, because they have bad credit, they’re finding it difficult to get the money that they need. However, it’s not always this way. With a few simple tips and tricks, you can learn how to apply for, and receive, payday loans online even when you have bad credit.
What Are Payday Loans?
Just to make sure that we’re all on the same page, let’s talk about payday loans for a minute. These are short-term loans that you can access quickly when you’re in need of a little bit of cash. You wouldn’t use these loans for a huge purchase, such as a new car. Instead, these are the loans you turn to when you can’t even afford the basic things that you need before your next paycheck comes in. Think of them as bridges between one paycheck and another. Once you get your next paycheck, you repay the loan. With so many people struggling during this changing economy, payday loans can be a really powerful tool.
How to Apply for Payday Loans Online
You used to see a lot of storefronts for these types of loans. However, more and more of those have closed down. If you don’t have one that’s easy to access in your area, don’t fret. There are a lot of legitimate, accessible places to apply for payday loans online. For example, Crediteck is a good option in Canada. You just have to find the right website, fill out the application, and get your money. It all happens very quickly if you know what you’re doing.
Common Reasons for Payday Loan Denial
If you’ve run into problems trying to get one of these loans, then it’s probably due to a few very common reasons:
- You can’t prove a steady source of income. The nature of these loans requires that you have a paycheck coming in at regular intervals. After all, how would you pay back the loan with your next paycheck if you didn’t have one?
- You can’t prove enough income. There are minimum income requirements for many of these loans.
- You don’t have a checking account. Usually you have to share your checking account information so that they can deposit your loan into that account.
- You have other outstanding payday loans. After all, these loans are already risky to the lender. If you see that you’re unlikely to pay them back, then they aren’t going to want to work with you.
- You fail to meet the minimum requirements for a loan. For example, you are underage.
- You have bad credit. In particular, if you have bad credit due to failure to make payments, then you might find it challenging to qualify for the loan you’re seeking.
However, don’t despair. You have options. Of course, you do have to meet the minimum residency and age requirements. Moreover, you have to show proof of income. However, if your problem is your credit, you have options.
Tips to Apply for Payday Loans Online Despite Bad Credit
So, what should you do if you have bad credit but really need that loan? Luckily, companies that allow you to apply for payday loans online absolutely understand that you are in a tight spot with your finances. Here are some tips to secure that loan from them:
- Look for an online lender that doesn’t require a credit check. Many of these lenders are aware that you might have bad credit. Therefore, they don’t even make this a part of the application process. Shop around to find those lenders.
- Make sure that you establish proof of income. When you apply, show your pay stubs and any other proof of income that you have. Make it easy for those lenders to see that you have money coming in regularly.
- Apply only for the amount that you need. The less money that you need to get you through the next paycheck, the easier it’s going to be to secure the loan. After all, you can pay back a small amount more easily than a large amount.
- Search for lenders that specifically advertise that they offer bad credit payday loans. They know exactly what you’re looking for and they offer it.
- Over time, keep building up your credit. Start by repaying your payday loan in a timely manner. This will make it easier for you to qualify to get one the next time that you’re in need.
Basically, you want to get yourself on the right foot by comparison shopping for lenders who don’t require good credit in the first place. Then you want to show them that you can pay back the loan. That’s the gist of how to apply for payday loans online despite bad credit.
Additional Tips for Online Payday Loan Applications
Here are some additional things that can assist you when you get these types of loans:
- Shop around for the best interest rates and repayment terms. If you find multiple lenders that will offer a loan without a credit check, then choose the one with the best rates.
- Prepare in advance to fully complete your online application. Make sure that you have your ID, social security number, checking account information, proof of income, etc. Fill out the application completely. Leave them no room for doubt.
- Read the requirements carefully before you apply. Do you need to be 18 or 21? How much do you need to earn each month? Don’t waste their time or yours applying for a loan that you can’t get because of these basic requirements.
- Be honest, transparent, and communicative. Respond quickly to all emails and phone calls. Tell the truth. Ask the lender if there’s any more that you can do to move the process along.
You can get the money that you need in between paychecks. Shop around and be smart.