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Why is Payday Advance Called 2nd Chance Loans for Bad Credit?

  • April 18, 2022
  • 5 min read
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Why is Payday Advance Called 2nd Chance Loans for Bad Credit?

Payday Loan is an easy and safe way to get fast financing in a difficult life situation, even if you have a bad or poor credit history.

Can I Get a Fully Online Payday Loan?

Lenders are trying to make the loan process as easy as possible, so now you can apply and get financing completely online.

Many people experience extreme hardship from time to time. However, most Americans do not have the money to cover their own expenses, so they are forced to look for alternative sources of funding. At the moment, Payday Loan is the easiest and fastest way to get money to meet your expenses. Moreover, lenders work with different types of credit, so getting a loan will not be a problem for almost any borrower.

What Is A Payday Loan?

A Payday Loan is a simple, unsecured type of financing that helps borrowers in difficult life situation obtain financing to meet emergency needs. The loan is short-term, so most often you will need to pay off the debt on the day of your next Paycheck (often within 14-21 days). The loan is also unsecured, so you don’t have to provide collateral for your funding application to be approved. Most often, payday lenders provide only small loans from $100 to $1,000, which is often enough to cope with unexpected expenses.

How Does A Payday Loan Work?

At the moment, Payday Loan works like this: you choose a lender, fill out an application, wait for approval, and then receive financing. Let’s explore each step in more detail:

1. Choice of a lender. Before you apply, it is very important to research the various loan offers in your state of residence. You need to compare not only the interest rate and loan terms, but also the additional fees and charges that lenders may charge. Thus, by comparing the options, you can find the most suitable for you.

2. Application. Lenders have made the loan process as easy as possible, so now you can apply completely online at your convenience from the comfort of your own couch. It is as simple as possible and will not take you more than 5-10 minutes. You need to provide information about yourself such as name, address, income, etc.

3. Approval. Payday Loans are famous for being approved as quickly as possible, so you don’t have to wait a week like you would with a bank or credit union. What’s more, if you study the laws of the state where you live and the eligibility criteria of the selected lender in advance, your application for funding will be approved almost instantly. Next, the lender will contact you to discuss the terms of the loan and the terms of debt repayment.

4. Financing. After you carefully study the contract and see that it meets your desires and needs, you can sign it. The loan amount will be transferred directly to your bank account within one business day.

Bad Credit Payday Loan

Many people with bad or poor credit have already been turned down by banks and credit unions. That is why they are now worried that they will not be able to get a Payday Loan. However, the truth is that Payday lenders work with different types of credit, so even if you have previously had problems paying off debts, you still have the right to receive money for your needs. So people with bad or poor credit can apply for 2nd chance payday direct lender loans and solve all their problems.

Eligibility Criteria for a Payday Loan

Of course, in order to receive financing, you must meet certain eligibility criteria of the selected lender. They may vary depending on state laws, but most often the main ones remain unchanged. For example, in order to get payday loans online Illinois you must:

• Be a US citizen or official resident

• Be at least 18 years of age or older

• Have a regular monthly source of income

• Have an active bank account for deposits

• Provide government-issued ID

• Provide a social security number

• Provide contact details such as phone and e-mail

What Can I Use A Payday Loan For?

The advantage of this loan offer is that, most often, payday lenders have no restrictions on what the loan can be spent on. So, once you receive funding, you can spend the money however you like.

Most often, borrowers apply for Payday Loans to meet the following needs:

• Renting an apartment or house

• Payment of utility bills

• Car repair

• Emergency purchase

• Urgent medical treatment

• Shopping for groceries

• Other emergency, even rebuilding your credit

How Much Does A Payday Loan Cost?

A Payday Loan is a rather expensive type of financing, so it is worth making sure that you can actually pay off the debt before applying. Most often, you will have to pay between $15 and $30 dollars for every $100 you borrow.

Moreover, remember that in addition to the interest rate, you may also have to face additional fees and charges, such as early repayment fee, late payment fee, application fee and so on.