Fast or express loans are designed to help customers out of a short term financial hole, such as repairing a broken car so they can get to work. The bulk of customers have already been declined by the banks so guaranteed payday loans for bad credit are often the last port of call. Provided that the eligibility criteria are complied with, all that the customer needs to do is provide the payday lender with a postdated check for the principal and any interest that will accrue. The advance won’t be provided in cash, but will instead be transferred directly to the customer’s checking account.
What are Guaranteed Payday Loans for Bad Credit Scores?
An unsecured loan for people with bad credit from a payday lender is essentially a guaranteed 24-hour loan to help deal with a genuine financial emergency. It is completely unsecured so no collateral – a house, car or gold – is needed to secure it. This means that the lender has to factor-in the likelihood of default when determining the rate of interest customers face. Interest rates are very high so a payday cash advance loan is not suitable for the consolidation of debt or long-term borrowing. In fact, most unsecured tenant loans are available for just 30 days.
Who Can Qualify for an Express Loan from a Payday Lender?
It is possible to get a loan with bad credit because there are no credit checks at any stage of the application process. If payday loan lenders used the credit scoring process that the banks do, they’d destroy their business. Instead, lenders focus on making sure that the applicant is who he claims to be and that the repayment of the money is affordable. A guaranteed payday loan for bad credit isn’t suitable for people in-between jobs because there is a full-time work requirement. There are loans for unemployed people available on slightly revised terms.
How Much Does it Cost to Get a Loan with Bad Credit?
As already alluded to, default rates are high on guaranteed payday loans for bad credit scores. The cost of an instant loan for $1500 is $375. This means that the customer will be expected to repay $1875 when they are paid at the end of the month. It is important to carefully consider how the money will be repaid. Unless the borrower is expecting a bonus, over-time payment, inheritance etc, an unsecured tenant loan could exacerbate financial difficulties.
Defaulting on Instant Loans for Bad Credit Scores
Defaulting on an express loan means that interest and charges will continue to accrue. Uncollectible debts are also likely to be sold on to collection agencies who will pursue the borrower for the full balance. Unsecured loans for people with bad credit can be tackled with a debt free solution, such as a debt management plan, debt settlement program or filing for chapter 7 bankruptcy. A credit counseling service may be able to help, but it is better to deal with an issue as soon as it becomes apparent. Borrowing money without a realistic prospect of being able to repay it is inadvisable as it simply delays the inevitable.