Planning to get a payday advance but you’re worried about your bad credit history? Well, most of the direct lenders that offer payday advance will take advantage of your financial status especially when you badly need the money. Actually, it’s very easy to apply for a payday advance because you can get approved despite of having a no credit history or a bad credit history.
Requirements for payday advance may vary depending on the lender but typically here’s what you need to do to get a payday advance with bad credit. First, you must be on legal age of 18 years old to be qualified for the loan. Second, you must have an active and open checking account. Third, you must have a valid identification. And lastly, you must have a proof of income. You can easily receive the money from payday advance in just 15 minutes if you can comply with all the requirements mentioned above. Mostly, you will write a check for the amount of your loan plus the lending fee and the lender will hold the check until a predetermined due date.
But before applying for a payday advance, consider these reminders first. Know your purpose in applying for a quick loan because every loan should have a purpose and continuously sending loan applications to lenders without a purpose might affect your future credit score. So, if you already have a bad credit history then applying for a payday advance might rebuild you a good credit history. Always take time to understand the terms of the loan especially if you will apply for a payday advance because it has higher fees than traditional loans and needs to be paid in just a few weeks due to it’s a short-term type of loan. Qualifying for payday advance depends on your income and the payday lender but some state established a law for maximum payday advance in order to set limit and keep borrowers from getting higher loan amounts that has high fees.
What Happens When You Don’t Pay Back a Payday Advance?
Payday advance are lifesaving tools, especially how they offer quick fixes when funds are tight. However, they are quite expensive to pay off which is why it is important that one is aware of the likely consequences if he ends up not being able to pay it back.
One of the most common reasons why people are unable to pay back a payday direct loan is usually due to interest rates that have piled up so high on their account. When not paid on time, payday loans can lead to several issues to the borrowers even to the point where they could be hassled by debt collectors.
If there is no money on your account at the time that a payday loan payment is supposed to be collected, lenders will be unable to take what you owe. They will usually try to take the amount again in a few days. The law only allows them to make two attempts to withdraw money from your bank account. This would mean that they’ll have to look for other methods to extract the payment from you.
Lenders may roll the cash loan over to the next month. But they are only allowed to do it once these days. Changes to the law prevent them from rolling it over some more, which was what lenders used to do in the past.
Loans that have been guaranteed would mean that the lender will try to get the money from whoever the guarantor is. If they cannot, then they will have to focus back on you.
Missing a loan payment means getting charged a late fee. This gets added to the costs. In addition, missed payments can affect your credit score too. Getting a loan in the future, especially a huge one like a car loan or a mortgage might be impossible. If you continue to miss the payments, legal actions may be taken which could end in a CCJ, which can further damage your credit score. To avoid getting into any more financial trouble, always make sure to pay your payday loans on time.