Are you struggling with an unexpected expense, but unable to get a loan due to a bad credit score? If so, you are not alone. A bad credit score has been a common problem among people, making things difficult to get a personal loan. No need to panic, as payday loans are here for your rescue.
However, what are payday loans? Will anyone with a bad credit score be able to payday loan without restrictions? We are sure that you might have various such queries. So, today, we will explore the details of a payday loan, including its features, best online payday loans for bad credit direct lenders, things to consider while applying for a payday loan, and more. Join us as we dive deeper into payday loans with bad credit.
Top 5 Online Payday Loans for Bad Credit Direct Lenders Only with Same Day Funding
Let’s begin our discussion on payday loans by mentioning some best online payday loans for bad credit direct lenders. The list of these online payday loans is as follows:
- Upstart: Best overall loans for bad credit
- Upgrade: A Reliable loan option for bad credit
- MaxLoan365: Easy and accessible payday loans at your fingertips
- 50K Loans: A secure platform with diverse personal loans
- Wizzay: A safe place for quick payday loans with bad credit online
There can be occasions when you struggle to meet unexpected expenses. However, with a bad credit score, you might not be able to get a loan. Fortunately, some online payday loans offer instant, same-day funding even for those with a bad credit score. No middlemen and delays, just direct communication with the lenders. Curious to know more? Here are the details,
Upstart
Upstart is a FinTech company that operates as an AI-powered lending platform. It offers various loans, including personal loans, auto loans, home equity loans, payday loans, and small-dollar relief loans for consumers by connecting them with banks and credit unions.
What makes Upstart unique from other platforms is that it offers loans even for those with bad credit scores. The major reason behind this is that, unlike just credit scores, Upstart analyzes education, income, credit card debt, and more.
- APR range: 6.6% to 35.99%
- Loan amounts: $1000 to $50,000
- Loan terms: 3 to 5 years
| Pros | Cons |
| Borrowers with a bad credit score can also apply | Interest rates can be high |
| No early payoff fees | Might have origination fees |
| Same-day funding |
Loan requirement
- Age: Minimum 18 years of age
- Employment: Currently employed
- Income: At least $1000 per month
- Credit score: No influence
Upgrade
Upgrade is a financial technology company that offers reliable and fast loans and financial services to help individuals. With various affordable and responsible credit options for mainstream consumers, Upgrade is a popular and reliable platform.
The financial services of this platform are offered through cards and personal loans. Moreover, this platform offers credit monitoring and education tools that help consumers learn and monitor their expenses and finances with no monthly charges.
- APR range: 6.6% to 35.99%
- Loan amounts: $1000 to $50,000
- Loan terms: 3 to 5 years
| Pros | Cons |
| Does not consider the credit score | Might have high interest rates |
| No upfront fees or costs | High origination fee |
| Receives the loan amount on the same day |
Loan requirement
- Age: Above 18 years of age
- Employment: Employed in the present job for at least the last 90 days
- Income: Around $1000 per month
- Credit score: No influence
MaxLoan 365
MaxLoan 365 is a popular platform that offers payday loans for bad credit scores. It helps you earn payday loans comfortably and easily. With MaxLoan 365, you can easily meet your expenses till the next payday.
You can borrow anywhere between $100 and $15,000 in a matter of a few seconds. One of the major features of MaxLoan 365 is that it offers instant funds within a couple of business days. Furthermore, this platform offers loans for those with a bad credit score, if they present their regular source of income.
- APR range: 6.6% to 35.99%
- Loan amounts: $100 to $15,000
- Loan terms: Up to 60 months
| Pros | Cons |
| Offers instant funding | Interest rates are often high |
| Simple application procedures | Might lead to a debt cycle |
| Offers guaranteed online installment loan approvals |
Loan requirement
- Age: At least 18 years
- Employment: Employed
- Income: A steady source of income
- Credit score: No influence
50k Loans
50k Loans is a unique online platform that offers $50,000 personal loans quickly with no hassle. With a wide collection of personal and payday loans, you can borrow from $500 to $50,000 using this platform.
Whether you are struggling with a major purchase, consolidating debt, or covering unexpected expenses within the next payday, 50k Loans will help you deal with it. Another attractive feature is that this platform accepts people with any credit score. Moreover, there is no paperwork and hidden charges at 50k Loans, leading to almost instant online lending decisions.
- APR range: 5.99% to 35.99%
- Loan amounts: $500 to $50,000
- Loan terms: Up to 10 years
| Pros | Cons |
| Offers personal loans of up to $50,000 | Increased interest rates |
| No paperwork or hidden fees | Might have a negative influence on job opportunities and housing options |
| Does not reject loans based on credit scores |
Loan requirement
- Age: Above 18 years
- Employment: Employed
- Income: Around $1000 per month after tax deductions
- Credit score: No influence
Wizzay
Wizzay is yet another online platform that offers emergency loans, especially for those with a bad credit score. With Wizzay, you can get short-term loans no matter what your needs are. From $100 to over $5000, this platform has a wide range of payday loans and others that help consumers receive money directly into their bank accounts.
Moreover, with an industry-recognized security system, Wizzay secures the private information of the consumers and ensures that a bad credit score does not affect people from receiving loans for emergencies. Furthermore, the procedures at Wizzay are quick, so consumers will receive their loan money in as little as 24 hours.
- APR range: Up to 35.99%
- Loan amounts: $500 to $5000
- Loan terms: 12 to 30 months
| Pros | Cons |
| A bad credit score will not affect loan approval | Interest rates can be high |
| No early payoff fees | Might have origination fees |
| Receives a same-day funding facility |
Loan requirement
- Age: Above 18 years
- Employment: Employed in the present job for at least the last 90 days
- Income: Around $1000 per month after tax deductions
- Credit score: No influence
What Are Payday Loans?
Payday loans are short-term loans that can be acquired based on your income. Lenders make these loans after analyzing your income. So, payday loans are normally equal to a percentage of your next paycheck.
Although these loans provide relatively quick cash, their interest rates will be much higher compared to other loans. Due to these high interest rates, payday loans are often referred to as predatory loans. Some of the important features of payday loans are:
- Small amounts: Payday loans are for relatively small amounts. The normal limit of these loans is $500. However, this is not a fixed limit as they may range above or below this amount.
- Short loan terms: The loan period of payday loans is relatively shorter and closed in a single payment. Mostly, these loans are repaid on the next payday or once the person receives an income, such as a pension or Social Security. So, the duration of a payday loan is normally two to four weeks.
- Automatic repayment authorization: An automatic repayment authorization will be provided to the lender while taking a payday loan. It can either be a post-dated check for the loan amount or an authorization for the lender to electronically debit the funds from the borrower. So, if the borrower does not repay the loan on or before the due date, the amount will be automatically debited by the lender.
- No credit or financial check: The lenders do not verify or analyze your credit score or ability to repay the loans while providing a payday loan.
What Is a Bad Credit Score?
A bad credit score refers to a credit rating that is generally very low or poor. This credit score is decided after analyzing various factors with the help of scoring models like FICO and VantageScore. According to FICO, the most widely used model to analyze the credit score by lenders, a score below 580 is often considered to be a bad credit score.
However, when it comes to VantageScore, anything below 600 is considered very poor. A bad credit score can stem from various reasons. Some of the most common reasons include late or missed payments, defaulting on loans, charge-offs, limited credit history, high credit utilization, multiple credit applications, and many more.
Whatever the reason, lenders usually consider an individual’s credit score before lending money. So, a bad credit score often has a negative influence and might result in paying higher APR rates.
What Makes a Good Payday Loan Lender for Bad Credit?
Lenders have a crucial role in easing the application process for a payday loan with bad credit. Let’s discuss some points to consider while choosing a good payday loan lender.
- Ensure that the lender you choose is legitimate with a proper license and registration.
- Check whether the lender offers transparency and provides clear information regarding APR, fees, repayment terms, and more.
- Confirm that there are no hidden or additional charges.
- Check whether your lender accepts loans with bad credit scores.
- Confirm that you have flexible repayment options and the possibility of extending or modifying payment plans.
- Verify that your lender offers fast funding once the loans are approved.
- Check the customer ratings and feedback of the lender before finalizing.
How To Apply For Payday Loans With Bad Credit?
As mentioned earlier, a bad credit score is a crucial influence on your loans. Most lenders analyze your credit score before lending loans. So, if you have a bad credit score, there are high chances that you might have to pay high APR rates or that you will not be able to qualify for that loan.
However, there are some loans, like payday loans, that you can get even with a bad credit score. This is mainly because you get payday loans without a credit check. Let’s see the steps involved in applying for a payday loan with a bad credit score.
- Visit any payday loans of your choice
Visit any payday loans platform of your choice, such as Upstart, Upgrade, MaxLoan 365, or others.
- Choose your loan amount
Confirm the loan amount you need. Whether you choose a 1-hour payday loan no credit check or $500 payday loans online, same day, ensure that you will be able to repay them.
- Complete the online application procedures
Complete the online application form by providing necessary information such as personal details, employment information, and monthly income.
- Submit and wait for approvals
Once the application is submitted, you will be connected with the lenders. The lender’s approval will be made instantly.
- Review loan offers
After getting approval, go through the loan offers and accept them if the rules and regulations are acceptable to you.
- Receive funds
After you accept the loan offer, you will receive funds directly to your bank account on the same day.
Things To Consider Before Taking A Payday Loan With Bad Credit
Payday loans can be helpful in emergencies, especially if you have a bad credit score. However, there are certain factors to consider before taking out an online payday loan with bad credit. Let’s analyze them in detail:
- Research properly
Although payday loans are given without a credit check, they come with certain costs, such as high interest rates and additional charges. As mentioned earlier, borrowers have to pay significantly higher interest rates compared to ordinary loans. So, it is important to have a thorough analysis before committing to a no-denial payday loan from direct lenders.
- Meet the eligibility criteria
Payday loans are provided without a credit check. However, there might be certain eligibility criteria a lender puts forth for a payday loan. So, it is important to have a deeper understanding of those criteria and ensure that you are eligible for them before applying. If applied without the eligibility, the request for the loan might be rejected, further reducing your credit score.
- Understand the terms and conditions
Terms and conditions have a crucial role. It is the clauses in it that shape the further proceedings of taking a payday loan. So, having a deeper understanding of the terms and conditions of the loan is very important. As these terms and conditions might change based on the lender, carefully analyze them before committing to a loan and ensure that there are no tricky rules or hidden charges.
- Ensure your repayment ability
Before committing to a payday loan, especially the payday loans online same-day repayment, evaluate your repayment capacity. These plans will have very high interest rates, and as the repayment time is shorter, it can be difficult for most borrowers. So, there is a possibility that you will be trapped in a loop of debt and repayment. So, before taking a payday loan, ensure that you are capable of repaying it in the specified time frame.
Why It’s Hard to Get Loans with Bad Credit?
We have already mentioned that bad credit scores can make taking loans difficult for individuals. But how are loans and credit scores related? What are the reasons that make getting loans difficult with bad credit scores? Let’s have a closer look:
- Risk assessment: A bad credit score can be an indication of a history of missed loans and poor financial management. So, this increases the risk of offering loans, indicating a chance of delayed repayment by the borrower.
- Higher interest rates: Even though some lenders might provide loans like payday loans without considering credit score, borrowers have to pay higher interest rates.
- Shorter terms: Low credit borrowers might receive loans only for shorter loan terms. This will lead to higher monthly payments.
- Collateral requirements: In case your credit scores are bad, you need to provide collateral for loan approval, as it will be a security if the loans are not repaid at the right time.
- Limited options: For borrowers with a bad credit score, loan options will be limited due to credibility concerns.
So, all the above-discussed factors suggest that the major reason behind the difficulty in getting loans with bad credit is related to the borrower’s credibility. As the borrower has a history of failed financial management, lenders will doubt their repayment ability, making the loan approval difficult.
Conclusion
We have reached the conclusion of our detailed discussion about best online payday loans with bad credit direct lenders. So, now, what are your thoughts? Are payday loans beneficial for you? Before applying for a payday loan, ensure that you are capable of repaying it in the provided time frame. As we have already discussed, payday loans might have high interest rates.
Moreover, similar to any other thing, these loans will also have certain drawbacks. So, before applying, ask yourself how well you can afford it. Moreover, if you plan to move forward, plan your expenses and financial activities in such a way that you will be able to repay the loan within the given time frame without further reducing your credit score.
Now that you are aware of various payday loans with same-day funding, choose the best that suits you. However, with a clear background, beneficial features, and a trustworthy customer rating, we recommend Upstart as the best option for an online payday loan that does not require a credit check. However, remember, the final decision is yours.
FAQs
Multiple loan companies, such as Upstart, Upgrade, MaxLoan 365, 50k Loans, and Wizzay, easily offer loans with bad credit.
In emergencies, you can apply for payday loans that offer same-day funding to receive $1000.
There are multiple platforms like Upgrade, Upstart, MaxLoan 365, and more that offer payday loans online with bad credit.
Yes. Payday loan lenders will lend you money even with bad credit.
With reliable payday loan lenders like Upstart, Upgrade, Wizzay, MaxLoan 365, and 50k Loan, you can get payday loans with instant funding directly to your bank account.
Yes. Even though a 500 credit score is considered low, you can borrow money through payday loans.
