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Many people hesitate to apply for a payday loan because they feel their past financial problems will bar them from being approved. However nearly every cash advance lender will offer payday loans for people with bad credit. Poor credit payday loans are granted because lenders who specialize in this type of short-term financing rely on the individual’s income source as a means to repay. You can get a cash advance with bad credit so long as you have a reliable monthly source of income.

Bad Credit Cash Advance Loans
Lenders will advertise payday loans that focus on poor credit because they will want to make certain the borrower understands that a low credit score doesn’t mean disqualification. In fact the score is irrelevant in most cases because it is not even checked. Cash advance loans for bad credit borrowers are available in every state in the country, because the laws that govern this type of financing do not require the credit bureaus to be notified of the loan agreement. For those wanting cash advance loans bad credit will not be a barrier to acceptance.

Qualifying For A Bad Credit Payday Loan
A bad credit cash advance loan is offered to anyone who otherwise meets the qualifying criteria. You will have to show that you have a minimum amount of income, paid monthly, bi-monthly or every week. This can be your paycheck from work, government assistance, royalties or a combination of these. Each payday loan lender will have their own rules concerning the minimum income needed to qualify, but this generally ranges from between $700-$1000 monthly.

You will also be able to borrow only up to a certain amount when applying for bad credit online payday loans. This is due to the lenders restrictions on how much can be approved when your income is looked at, and is also determined by where you reside. Most states have an upper limit on how much can be borrowed as a short-term loan package. Some states allow up to $1000 and more, while others have limits as low as $300. Regardless of the amount of the cash advance bad credit is not a consideration.

You must have an open checking account in order to obtain an online payday loan. This allows the funds to be deposited directly from the lender to you. Your bank account number, bank routing number and address used on the account must be furnished to the payday lender. A cash advance for people with bad credit involves looking at your current situation rather than past credit history, so the above items are the most important factor in determining your eligibility.

The Online Application
The application is very easy to fill out as the fields are clearly marked and you have the chance to review your information before submitting it. The form includes spaces to enter your social security number and driver’s license or other ID. These are necessary pieces of information because it helps the lender identify you properly. This submission of personal information is not sent to the credit bureaus, as payday loans for individuals with bad credit are approved the same way as those given to individuals with a high credit score. In fact those with a high credit rating or score will not be identified as such by the lender, so their score does not give them special qualifications for a better or larger loan package. A payday loan for bad credit individuals is easy to obtain.

Fast Online Approval
The lender will examine your income and when you receive it each month, run a routine check to make sure your driver’s license and social security numbers are correct, and offer a loan package that they feel you can afford to repay. The approval often takes less than an hour and in most cases there is no need to email or fax any additional documents. In issuing payday loans for bad credit no faxing means quicker approval time, and the lender will contact you by telephone or email to let you know that your loan agreement is awaiting your signature. Payday loans for bad credit individuals are processed just as quickly as if the credit score was ideal.

Interest Rates On Very Bad Credit Payday Loans
When approved for bad credit payday loans online the lender will show you the loan agreement which states the amount you can borrow and the total finance charge that is attached to the cash advance. The state where you live will have a maximum percentage allowed for this kind of loan. Most allow up to 15 percent of the total borrowed, while others have lower percentages. Some states have a tier system that allows perhaps 15 percent for the first $400 or so that is borrowed, and only 10 percent for any amount above this. In the above example, you would be charged $60 for the first $400 borrowed and $10 for the next $100, so your total finance charge would be $70.

A cash advance for bad credit individuals will have a rather high annual percentage rate. Often above 350 percent, this reflects how much would be paid in finance charges over a year’s time. However the repayment is made all at once, therefore the finance charges stated on the loan agreement are final and cannot be increased.

Repaying The Loan
If you have a payday loan with bad credit, the repayment will also not be reported to the credit bureaus. You will have the loan amount plus applicable fees withdrawn from your checking account on or after the due date. The lender will determine this date based on the laws of your state as well as the dates of your next one or two paydays at work. Most loans have a repayment date that is between 7-31 days after the agreement is signed and the funds deposited. You have the option of repaying the loan earlier, but if you choose not to, the lender will withdraw the total owed using an electronic automatic transfer from your account. Repaying the loan early will not reduce the finance charge, but will make you eligible for a second loan almost immediately.

The Lender’s Obligations And Rights
Think of cash advance lenders as the payday loans people. They are companies that must be licensed specifically to lend money to individuals with the understanding that the repayment is made in full rather than in installments. When you sign an agreement with the payday loans people bad credit is not an issue because you are promising to pay based on your monthly income. If for any reason you default and cannot repay on time, the lender may be of assistance in extending your loan. However they also have the right to begin legal actions on past due loans, so long as they do not harass you or call your employer. Some payday loans people offer what are called last chance payday loans, tailored to fit the needs of individuals who have defaulted on a previous cash advance. A last chance cash advance is actually the same as any other payday loan, but the company that uses this phrase may be able to qualify you in a hardship case.

If you need immediate funding and have had credit problems in the past, don’t be discouraged. When you apply for a payday loan bad credit is not a disqualifier. With payday loans bad credit no faxing and minimum income are the things to remember. You can have the funds you require in less than 24 hours.