Payday Loans For Bad Credit


Need cash fast? Payday loans for bad credit seem appealing. But you need to know how these loans work and the risks. Let’s get to it.


Key Points

  • Payday loans are short term, high interest loans
  • Used by people with bad credit
  • APRs up to 400% or more
  • Repayment due next payday
  • Can lead to debt cycle
  • Consider alternatives before applying

What are Payday Loans?

Payday loans are short term loans you pay back by your next payday. They’re usually for small amounts, like $500 or less. They’re meant to help you cover unexpected expenses when you’re short on cash.

Here’s the catch: payday loans have super high interest rates. You end up paying back way more than you borrowed. For example, if you borrow $300, you might have to pay back $345 or more in 2 weeks.

The application process is fast and easy. Many lenders have online applications you can fill out in minutes. But this ease of access can make you borrow without thinking it through.

Payday Loans and Bad Credit

Many people use payday loans because they have bad credit. Bad credit means you’ve had trouble paying back loans or bills before. This makes it hard to get other types of loans. Payday lenders don’t check your credit score which is why they’re easier to get.

At SlickCashLoan we know bad credit happens. We work with lenders who look at more than just your credit score. They consider your job and income when deciding on your loan. This way they get a better idea of whether you can pay back the loan, not just what your credit score says.

But just because you can get a payday loan with bad credit doesn’t mean it’s a good idea. The high interest rates can make it even harder to pay back which could hurt your credit more.

Payday loans don’t help build your credit score. Even if you pay on time, this isn’t reported to the credit bureaus. So they don’t offer the credit-building benefits that some other loans do.

Discover our bad credit loan options

Pros and Cons of Payday Loans for Bad Credit

Pros:

  • You can get money fast, often same day
  • You don't need good credit
  • Application process is simple

Cons:

  • Very high interest rates and fees
  • You could get stuck in debt if you can’t pay back on time
  • 2 week repayment terms can be tough to meet
  • Don’t help build your credit score
  • Some lenders are aggressive if you default

How to Apply

Applying for a payday loan with SlickCashLoan is simple. Here’s what you do:

  1. Fill out our online form. It takes just a few minutes.
  2. Give us some basic info about you and your income. This includes proof of your job, bank account details and ID.
  3. Wait for an answer (it’s quick). You’ll often know within minutes.
  4. If approved, read and accept the loan terms. Make sure you understand all the fees and how to pay it back.
  5. Get your money, often the next business day. Some lenders may even give you the money the same day.

Remember, we try to make approval fast and easy even with bad credit. We want to get you money fast with as little stress as possible.

How to Get Approved

If you decide a payday loan is your best option, here’s how to increase your chances of getting approved:

  • Have a steady income
  • Have an active bank account
  • Fill out application accurately
  • Know what the lender requires
  • Be prepared to provide proof of income and ID
  • Check if you meet the minimum age requirement (usually 18)

The Costs of Payday Loans

Payday loans have super high interest rates. We’re talking up to 400% APR or more. APR is the total cost of borrowing money for a year.

To put it in perspective, a credit card might have an APR of 15-30%. So payday loans are way more expensive. And there’s often extra fees on top of the interest.

For example, on a $500 payday loan for 2 weeks at 400% APR, you’d owe $576.92. That’s $76.92 in interest and fees for 14 days of borrowing. If you can’t pay back and need to roll over the loan, these costs can get out of control fast.

graph comparing APRs of different loan types

Alternatives to Payday Loans

Before you decide on a payday loan, consider these:

  • Installment loans: Lower interest rates and longer repayment terms
  • Credit card cash advances: Still expensive, but cheaper than payday loans
  • Borrowing from friends or family: Awkward, but interest-free
  • Credit union loans: If you’re part of a credit union, you might get cheaper short-term loans
  • Paycheck advance apps: Small advances on your paycheck for a lower fee
  • Local nonprofits or charities: Some offer small dollar loans or grants to those in need
  • Negotiating with creditors: Some will work out a payment plan with you

Each of these has its own pros and cons, but they’re generally better than payday loans. Worth looking into before getting a high interest payday loan.

Responsible Borrowing

If you do take out a payday loan, follow these:

  • Only borrow what you can pay back
  • Read and understand all the loan terms
  • Make a plan to pay back the loan
  • Don’t roll over the loan or take out new loans to pay off old ones
  • Set up automatic payments so you don’t miss the due date
  • Try to improve your credit over time by paying bills on time and reducing debt to have more options later
  • Look into financial counseling or budgeting help for money problems

State Laws on Payday Loans

Payday loan laws vary by state. Some states don’t allow payday loans at all, while others limit how much you can borrow or how high the interest rates can be. Knowing your state’s laws will help you make an informed decision and protect your rights as a borrower.

State Payday Loans Allowed Maximum Loan Amount Maximum Loan Term Maximum APR Rollovers Allowed
California Yes $300 31 days 391% No
Florida Yes $500 31 days 391% No
New York No N/A N/A N/A N/A
Texas Yes No limit No limit No limit Yes
Ohio Yes $1,000 12 months 28% No

Conclusion: Think Before You Get a Payday Loan

Payday loans for bad credit can seem like a quick solution when you’re in a pinch. But the costs and risks mean they should be a last resort. Before you apply, make sure you understand all the terms and have a plan to pay back the loan. If possible, look into alternatives that are cheaper and less risky.

Your financial life matters. Sometimes taking a little more time to find a better solution can save you a lot of stress and money down the line. Look into financial advice or credit counseling to help with money problems and improve your long term situation.

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