In the United States, 43.4 million adults have a credit score lower than 599.
If you’re included in this number, chances are you find it very challenging to obtain any sort of credit line.
Although it’s challenging, it’s not impossible to obtain a payday loan with bad credit. Read on to learn 5 tips on how.
1. Learn How Low Your Credit Is
Before you decide you have bad credit, it’s important you get all the facts. Generally speaking, those with bad credit often have a credit score that is 580 and below.
If your credit sits below this line, then you’ll know it will be more challenging to obtain a loan.
2. Perform an Online Search
There are a lot more banks and lenders than the ones you might see on your drive to work every day. If you perform an online search you might come across a bank or lender willing to give you a payday loan despite your bad credit.
Online, you can find all kinds of loans including bad credit motorcycle loans.
Before you decide on an online lender, make sure you do your research to ensure the online lender is a member of the Better Business Bureau.
3. Try Your Inner Circle
Before you start applying for loans, you should ask a friend or a family member if they can loan you some money. If the sum you need is not significant, you might be able to borrow money from your relatives.
Make sure you discuss how long it will take you to pay them back.
4. Talk to Your Bank
If you have a checking or savings account with a bank, you can always talk to them about getting a small loan.
Although they’re under no obligation to give you a loan for simply being a customer, they might relax their rules a bit if you’ve been banking with them for a long time.
5. Consider a Pawn Shop
If you’re in desperate need for a payday loan and all of your other sources have failed, it’s time you consider a pawn shop. Although pawnshops have a reputation for being places where you buy or sell items, they can also be the place to go when you want a personal loan short-term.
However, if you’re considering going to a pawnshop for a loan, you have to keep in mind their fees could be quite steep. Since the interest rate it’s determined by state law, it can be as low as 15% or as high as 200%.
Also, pawn shops will ask for collateral, so don’t think about walking in there asking for a loan if you don’t have anything to offer as collateral.
Because they’re mainly an in-case-of-emergency loan, you should not consider it a permanent solution.
Get a Payday Loan for Bad Credit Today
Now that you have read these tips, it’s time you try obtaining your payday loan.
The first step is to learn what your credit score is, try asking a relative for a loan, talk to your bank, or search online for lenders.
