Understand your cash advance options with this list of bad credit payday loans sites
Payday loans are not a great way to borrow. We all know that but there isn’t always a better option if you have bad credit. The people that try to shame payday loan borrowers for using cash advances have never been in the situation…and don’t know what it’s like.
I’m not going to tell you that payday loans should be used any time you need cash or that interest rates as high as 500% don’t suck but they can provide a way to avoid check bouncing fees and a hit to your credit if you have no other option.
The important point is to understand how to use a payday loan and how to get the best payday loan rates by knowing the different payday loan sites. Check out this list of bad credit payday loan sites (updated regularly) for your cash advance options. Scroll down further to see how to use a payday loan without falling into the trap and how personal loans can help you get back on your feet.
Get the Best Payday Loan Rates with these Sites
It’s pretty easy to get a payday loan. Since the loans are for just a couple of weeks and based on your monthly income amount, most payday lenders don’t require a credit check. The ease of getting a cash advance means you can save money by shopping around to get the best payday loan rates and deals. Check out the features and fees on the payday loan sites below to start your search.
Check Into Cash is the oldest payday lender I know of with a website. The company was founded in 1993 and has grown to more than 1,000 locations in 30 states, providing title loans and Western Union as well as payday loans. Rates and max loan amounts depend on the state in which you live. For example, Oregon residents can borrow up to $300 for a fee of $39 for one month while California payday borrowers may borrow up to $255 every two weeks.
Trusted Loan Network is a loan matching service where the payday loan site acts as a middleman, matching borrowers with lenders from its loan network. Payday loans range from $100 to $1,000 but you can apply for a personal loan of up to $10,000 as well. Loans are deposited in your account the next business day and are not based on your credit history.
CashAdvance.com is another payday loan matching service with loans between $100 to $1,000 for terms between seven days to a year. The lender is one of the oldest in payday loans, making loans available in 37 states since 1997. There are no credit requirements for a loan but you must be 18 years old with a current job and at least $1,000 in monthly after-tax income. Loans are generally deposited in your bank account within 24 hours if you’re approved.
How to Use Payday Loans and Live to Tell the Story
Using payday loans and avoiding the interest rate trap starts with borrowing only as much as you need to get you to your next paycheck. It’s not like this is a 30-year mortgage where payments are relatively small. You’ll need to repay this money in the next couple of weeks or take out another loan, costing you another loan fee. Constantly refinancing your payday loan every month is the reason interest rates equal 300% or more a year.
While you won’t need a credit check for most payday loans, you will have to provide your checking account information or leave a check with the lender. They will use this when the payday loan is due, withdrawing money directly out of your account. Make sure you have money in your account on the day the payday loan is due or contact the lender because non-sufficient funds charges will add another $15 to your loan cost.
The best thing you can do to keep from falling into the payday loan trap is to change the way you budget. Most people plan their budget by taking expenses out of their income first. They might get through their expenses but don’t have anything left for savings at the end of the month. Living paycheck to paycheck like this means any unexpected bills are going to force you into another payday loan and you might not have the money to pay off the loan without another one.
Instead, take your savings out of your monthly income first before budgeting your expenses. This forces you to cut spending instead of not saving if you don’t have enough to pay the bills. Save at least $50 a month or more to build an emergency cushion.
Getting better rates on loans and avoiding high interest payday loans means understanding your credit score and increasing your score over time. Just one missed payment can drop your credit score by as much as 100 points, forcing you into another payday loan rather than a lower-rate personal loan. Make extra payments on your credit cards and other loans when you can to get your credit balances down. Make sure you check your credit report regularly for errors that might be affecting your score.
It’s important to know your rights as a payday loan borrower. Payday lenders cannot use the criminal process to collect on any loans. Try to repay your loans but don’t be intimidated by threats of arrest or jail. If you feel the payday lender is harassing you, contact your state’s Attorney General’s office immediately to file a complaint.
Using Personal Loans as a Payday Loan Alternative
Once your credit score is high enough, over 640 FICO, you might qualify for a personal loan. These are unsecured loans meaning you don’t have to put up your house or car for collateral and usually for more than a short-term payday loan. You can borrow from $1,000 up to $35,000 from most online lenders and make payments each month for as long as five years.
There are a couple of advantages to personal loans over payday loans. Rates are based on your credit score and generally range from 6% to 30% on an annual basis compared to rates as high as 500% for payday loans. You may not notice the cost as much on payday loans because you’re charged a ‘fee’ on the loan rather than interest but continuously borrowing on payday loans will add up quick.
Personal loans are paid on monthly installments just like other loans, meaning you won’t have to pay it all off at once like a payday loan. It makes it a lot easier to make payments and put a little aside for saving rather than make one big payday loan repayment.
Don’t let others shame you from using a payday loan to get back on your feet but don’t let the payday lenders take advantage of you either. There’s not always a better option if you have bad credit and payday loans or cash advances can be enough to get you to your next paycheck. Understand how to use payday loans without falling into the refinancing trap and consider a personal loan to cover longer-term borrowing needs.