Payday Loans for Bad Credit

There are always situations when sudden and unexpected costs or bills arise. But your bank account is empty and it’s still days until your next payday and the banks won’t lend you any money as you have a bad credit score.

There are ways, and here is a short introductory video to give you the essential information about finding loans if you have a less than perfect credit score. It also tells you what you need to know before you sign up.


What do you do? There are options available, but you need to know what you’re signing up for. When you’re faced with a sudden financial crisis, it’s very easy to skip over the fine print, and just agree to whatever the lender requires.

One option that’s available is ‘Payday Loans for Bad Credit’. This is where the company will lend you a cash advance on your upcoming paycheck to allow you to handle any sudden expenses like medical bills.

Or, maybe you haven’t enough money left over for an emergency repair to your car.

These types of loans will provide you with the fast cash, and it can be available within the hour in some cases, depending on the lender.

Some companies will offer these payday loan products to people who have below ideal or bad credit scores. Sounds like the perfect solution right? Well it may be, but you do need to understand what you’re getting into.

Before taking on a payday loan, you also need to be aware of the pitfalls and risks associated with dealing with these types of loans.

Payday loan companies must be licensed to provide these services and in some states, like Georgia and Arizona, it is actually illegal for companies to offer this product.

How Do You Apply For A Payday Loan?

Before you can access this type of loan you will need the following

  1. complete an application form (typically online)
  2. provide identification,
  3. have an active bank account and
  4. proof of employment

This MUST be provided before the application can be processed.

You will be required to leave a check dated for the due date of the loan that will be for the full loan amount and any additional fees and interest charges associated with the loan.

The check will then be banked on the day that the loan is due. If you aren’t able to do this, you have the option of paying for the loan and fees with cash, in person, and at this point, the check will be returned to you.

Some things to consider:

  • If you do decide to pay by check, make sure that the whole amount due is in your bank account on the due date.
  • You will be charged bank fees for the check bouncing if funds are not available and you will still have the loan amount to pay, but now with more interest.
  • Failure to pay the loan on the due date will most likely result in penalty fees incurred or an increase in the interest rate on the loan.
  • This can start to increase the amount of the original loan and what was intended as a quick fix, can turn into a financial hiccup that will become a financial headache all of its own if you’re not careful.
  • Depending on which state you reside in, you may be able to renew the loan in exchange for paying an extra fee of 15%.

However, this is not allowed in some states. Check with the company prior to taking out the loan if you think you may not be able to pay it all in once lump sum.

It is recommended that you only take loans from members of the Community Financial Services of America, as they are required to extend the loan setup, and put together a payment plan at no extra cost, if four renewals are exceeded or what the state law advises. If you reside in Washington, and a few other states, this extended payment program is a requirement of state law.

If you’ve found out that this type of loan is not allowed in your state, there are still options to access one. In some instances, banks can partner with a payday loan provider in another state.

This is legal in states such as New York, because as far as the state is concerned, the loan wasn’t made in New York, but via an internet based site, another state, or in some cases, other countries.

You should always ask questions before signing any documentation. These are the questions you need to ask:

  1. Are you a member of the Community Financial Services of America?
  2. Do you meet state law requirements (ask to see proof of their certification)?
  3. Can I renew my loan if I’m unable to pay it in full when it is due?
  4. What fees are associated with taking out this loan?

It can be difficult to access loans when you have bad credit. A payday loan for bad credit may be your only option, but you need to consider the points above. In some instances, options such as declaring personal bankruptcy could be a better.

There are free services available to provide financial advice, such as those available from the National Association of Personal Financial Advisors. Seek advice from qualified professionals before looking at payday loans for bad credit, so you don’t end up with a bigger headache than you started with.

Payday Advance


February 2018
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Short term loans like payday loans attract higher interest rates. This site contains general information to allow you to understand the pros and cons of payday loans. Any information on this site is not to be construed as financial advice. Each person needs to consult professional advice before borrowing money to ensure their personal circumstances are taken fully into account.