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Top 5 Best Payday Loans Online For Bad Credit

Top 5 Best Payday Loans Online For Bad Credit

A bad credit history is a report for new lenders, showing the borrower’s ability to handle debts. The main factor in the credit score deterioration is delinquency on debt obligations. To fix the credit history, you need to get rid of delinquencies, reduce the total number of loans. The changes will not be reflected immediately.

Let’s figure out what types of small loans exist and which of them are available to people with a spoiled credit history.

Let’s start by finding out what payday loans are. They are issued by payday lenders only to individuals on the terms of repayment, urgency and payment. Issuing such a loan in a non-cash form will allow you to use a bank card when paying for goods, works and services.

Repayment of a payday loan issued to a debit/credit card occurs automatically (the bank withdraws the amount of the debt when funds are credited to the account), when issuing a loan in cash, the borrower must timely make a payment to repay the loan, the amount of which is set in the loan agreement.

Type#1: Cash advance for people with bad credit history

cash advance

A cash advance belongs to a short-term lending option. The term may also imply a service offered by many credit card issuers that allow cardholders to withdraw a certain amount of cash. Cash advances generally have rather high interest rates. Cash advance is issued by borrowers because they also underline fast approval and quick funds’ depositing. One more attractive feature is that such a financial assistance is available for people with a damaged (imperfect) credit history.

Probably the most significant benefit for cash advance is that you can get fast access to exra cash when you are in great demand in it. You do not have to wait for banks to open, or for long approval processes. You get an immediate response and fast cash.

Type#2: Title loans – as a way to issue a greater loan amount

title loan

A title loan is a type of collateral lending in which the subject of collateral is your private transport. At the same time, the car remains at the full disposal of the owner, and only the title is transferred to the lender for storage. This is the best option for those who earn money by means of a vehicle, for example, taxi, delivery, cargo transportation, etc., or are simply afraid to leave the car in specialized parking lots of credit institutions.

This option is available for people with a damaged credit history to get a greater amount to handle temporry financial problems. The evaluation procedure remains the same, which determines the amount of the loan, the interest rate and the term. Cars are checked in several directions: technical condition, market liquidity and legal purity of documents.

In pawnshops, you can get up to 90% of the market value of the car, but if the borrower chooses a loan secured by a title, the maximum amount will not exceed 75%. This is due to the certain risks for the lender. For example, a car may be damaged in an accident, stolen, which will seriously affect its cost and the possibility of repayment of borrowed funds.

Type#3: Personal loans – the solution to the temporary financial problems

personal loan

A personal loan is an unsecured loan issued by credit unions. Loans are approved on the basis of criteria like employment history, repayment capacity, income level, profession and credit history. Personal Loan, which is also known as a consumer loan is a multi-purpose loan, which you can use to meet any of your financial needs.

Personal loans also can have either fixed or floating rates. Fixed-rate personal loans are when the interest rate and monthly payment are persistent along the entire use of the loan. This is the most common form of personal loan. In contrast, the interest rates of adjustable-rate loans change over time—usually starting out low and increasing after a certain period of time.

Type#4: Installment loans – available in almost US states and for people with a spoiled credit history

Installment loan

An installment loan is a type of agreement or contract involving a loan that is repaid over a certain period with a set number of scheduled payments; usually at least two payments are made to the loan. The loan term can range from several months to several years.

Installment loans are generally considered one of the most favorable loan terms for borrowers with bad credit records to get extra cash. The loan amount can be small or large. The loans typically range from $500 – $5,000 depending on your state, your credit report, etc.

Type#5: Debt consolidation loans – refinance your debts fast and efficient

Debt consolidation loan

A debt consolidation loan is the combination of several “expensive” consumer loans into one mortgage, cheaper to servicing a loan. This program helps to reduce the expenditure of funds for the loan repayment, since after combining several unsecured debts into one collateral, the interest rate is noticeably reduced.

Basic requirements:

  • age from 21 years at the time of application;
  • age up to 75 years at the time of debt repayment;
  • US citizenship;
  • employment at the last place of work for at least 6 months at the time of application with confirmation of official income.