Is My Credit Too Bad For a Payday Loan?
When unexpected expenses rear their ugly heads, consumers are often left with no options. Payday is five days away, relatives can’t afford to loan the money, and you need to buy groceries and gas on top of the latest expense. If this situation sounds familiar, you might have considered a payday loan. But is your credit too bad to be approved?
Poor credit scores, bankruptcies, serious delinquencies and other blemishes on your credit record may have hampered you in the past. Obtaining a mortgage or a car loan might be next to impossible, and money might be on your mind 24/7. The good news is that there are payday loan centers that don’t require a credit check for approval. As long as you are gainfully employed with a checking account, approval is certain.
Of course, there are a few payday loan centers that still require decent credit in order to receive a loan. In this case, you’ll have to do some research to find out of your credit is too bad for approval.
Know the Standards
Even if payday loan centers require a credit check during their review, their standards for credit are usually far more lenient than those of other financial institutions. For example, to be approved for the minimum $2,000 short-term loan at Bank of America, consumers require a credit score of at least 685. For Rich Payday Loans, however, the requirement is only 550, which is a significant difference.
If you think that your credit is too bad for a payday loan, you might want to think again. Order your free credit report from FreeCreditReport.com and find out what your score is, then contact several lenders to determine their requirements.
Make Yourself More Attractive
Despite your poor credit history, you might be able to make yourself more attractive to a payday loan center. For example, if your weekly salary is far larger than the amount of the payday loan you are seeking, you might have a better chance for approval, even with a less-than-healthy credit history.
You can also offer collateral for the loan (such as a car title loan) or sign up for a direct deposit loan that gives the lender immediate access to the funds. You’ll find that many lenders are more than willing to negotiate with borrowers; you just have to know the right buttons to push.
Find a Lender Who Doesn’t Do Credit Checks
If you really think that your credit is too bad for a payday loan, ask around and find a lender who doesn’t do credit checks. The Internet is a great place to start, but don’t limit your search to online institutions. You’ll find that some lenders advertise “No Credit Checks” in the windows of their brick-and-mortar stores.
The Bottom Line
The best thing you can do for yourself is start working on repairing your bad credit. Sign up for credit counseling at a reputable financial center, or start to pay down your revolving credit while making payments on delinquencies. That way, you won’t have to worry about it in the future if you get in a bind.
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