Financial circumstances can be unjust at times. Emergencies can occur without our permission or checking to see if we have any savings to cover them. Bad credit emergency loans are intended to assist hardworking people in meeting their short-term financial needs.
These days bad credit loans are famous among Americans due to the easy and swift process of obtaining money. Each day the market is filled with new lenders that are ready to provide cash with short terms. In 2015, the CFPB discovered 15,766 payday loan stores.
The term “bad credit” hints that the loans are specially designed for borrowers with poor credit scores or no credit history at all. Thus, these sums are provided by the lenders who do not perform a hard pull before approving the client’s case. Bad credit loans are also called payday loans, cash advances, or no credit check loans.
About Bad Credit Loans
Bad credit loans are for small sums of money up to $2500. Online lenders can sometimes provide funds of up to $5000. Payday loans are typically available from traditional banks, credit unions, and websites suggesting loan services. Because the latter implies the most convenient method of obtaining money, Americans tend to prefer online sources.
Bad credit loans are typically due within two weeks or a maximum of a month. Usually, the borrower writes a postdated check to the lender for payday salary but receives a portion of that payday sum in cash from the lender. In other words, payday loans should be paid by the borrower’s next paycheck. Thus the term “payday loan.”
Bad credit loans are unsecured money and do not require any collateral as a pledge. This means that if your payday loan is approved, you will not be required to put any of your assets up as collateral.
Why Should You Choose Unsecured Payday Loans from Online Lenders?
- Online loan application
- No documentation or paperwork
- Personal data security
- Direct deposit of cash into your account.
Bad Credit Loan Interest Rates
According to the Consumer Financial Protection Bureau, the cost of a payday loan is usually $15 for every $100 borrowed. Loans generally have an annual percentage rate (APR) of 400 percent or higher. If the loan is not repaid in full by the first paycheck, a fee is assessed and added to the original amount, and the cycle starts over.
Requirements for Bad Credit Emergency Loans
The borrowers:
- Must be at least 18 years old.
- Must be US permanent residents.
- Must have a steady job or a steady source of income.
- Must share a valid phone number and email address for notification of approval.
- Must provide a bank account that qualifies for cash deposits.
Payday Loans and The Law
Online payday lenders are generally subject to the existing rules and rate caps of the state in which the borrower receives the loan. In thirty-two states, payday lending is permitted by state laws or regulations. With reasonable small loan rate caps or other prohibitions, fifteen states and the District of Columbia protect their borrowers from high-cost payday lending. Three states have lower rate caps or longer terms for loans that are slightly less expensive.