The payday cash loan was introduced because mainstream financial institutions would not allow non-homeowners to borrow money with bad credit. It is now possible to get a small cash loan with no credit scoring for up to a calendar month from a specialist sub prime lender. These very bad credit loans are normally provided to customers in just 15 to 20 minutes, provided the eligibility criteria are met.
Payday Cash Loans
Instant approval payday loans are only suitable for short-term borrowing because the absence of a credit check means that the rate of interest is high. They are an adverse credit loan for an emergency situation only, such as paying the rent. They aren’t suitable for consolidating debt.
How to Qualify for Instant Approval Payday Loans
- A citizen of the country where the very bad credit loan application is being made.
- Must be a minimum of 18 years of age.
- Provide 2 forms of identification, including one source of photo ID.
- Have a valid checking/bank account.
- He/she must be in full-time employment and be able to provide satisfactory proof.
The Terms of Very Bad Credit Loans
Bad credit rating loans are an accessible way of borrowing money, but they are expensive. A payday cash loan typically costs $20 to $25 to borrow $100 for a calendar month. The borrower provides a post-dated check to the lender that clears when the individual is paid. Failing to repay the money owed on-time will mean that interest and charges will accrue quickly. It is important to have sufficient disposable income to be able to clear the principal and interest along with the following months expenses.
Alternative Bad Credit Rating Loans
Those who don’t have a job, but are able to provide suitable collateral (gold, jewelry etc) may be able to get a pawn shop loan. However, as with all adverse credit loans, it is important to appreciate that the higher interest rate will leave less money to meet financial obligations the month after. Individuals who are seeking to write-off up to 50% of unsecured debt may wish to consider a debt settlement program.
Pros and Cons of Payday Cash Loans
Instant approval payday loans are a great way of handling a short-term financial emergency. This type of very bad credit loan is available with no credit scoring so they are available for individuals with poor credit. However, the major negative is the cost of borrowing money. An adverse credit loan from a payday lender will leave the borrower with considerably less money to cover expenses the month after.