Can I get a payday advance with bad credit?

Here’s another question that we hear all the time. “Can I get a cash advance online loan if I have bad credit or no established credit history?” Another variation of this question is, “Can I get a cash advance loan if I have a prior bankruptcy?” Let’s start with the first question. The answer most of the time to this question is, yes. Direct lender payday loans are not designed or recommended for people who have decent to good credit. Those types of people with be better served by applying for a normal bank loan or installment loan. The types of companies that fund payday loans online know that you’re not going to have a lot of options if you have poor credit. That’s why the interest rates or so high on these types of loans. Let’s break this question down further.

With most types of short term loans you’re going to be borrowing a set amount of cash.  With the expectation being that it needs to be paid back within a few weeks. Each day that goes by during the life of the loan you’re going to be assessed interest that adds up each day. This interest rate is actually quite high compared to other types of loans. That’s why it’s not crucial to have good credit if you’re applying for a cash advance online. The creditors have already priced that factor into the cost of the loan! Most online lenders that we know of won’t even run a typical credit report on applicants. Some lenders will run their own credit checks and other will run reports.  They want to see if you’ve bounced checks in the past.  Some will investigate if you have past due payday loans or cash advances. You really can’t tell which lender will run a report to see if you have bounced checks recently. On top of that, some companies use industry resources to identify fraudulent applicants or applicants that have multiple past due loans over their recent credit history. Did you know that some car title loan and payday advance companies require you to submit banking information before signing off on funding?  That’s right, some firms will want to verify that you have an account checking our for direct deposit before moving forward.  In theory you will probably be just fine applying for a cash advance online if you have bad credit. If you have past installment loans or problems with banks and checking accounts you may run into trouble.  But it really depends on the lender.

In regards to the question of whether or not you be approved for a cash advance online with a past bankruptcy.  That’s another question that isn’t easily answered.   We recently discussed the financial choices available to you in our finance and lending blog. Most actual lenders don’t use the same process to vet and eventually approve online applicants. It’s definitely going to be a problem if you have a recent bankruptcy and you’re applying for a loan, as the lender will be concerned that you will simply include the cash advance online in your bankruptcy listing. It’s always best to disclose your bankruptcy history with your online lender. As with the issue above involving your credit score, lenders that provide payday loans aren’t expecting you to have a perfect financial history. Just make sure you disclose everything when you apply for the loan and state your case to the lender if it becomes an issue. You will be surprised at how many companies are willing to work with you if you’re honest and in serious need of cash advance online!

Having Bad Credit Won’t Preclude You From Getting a Cash Advance Loan!