You’re freaked out because you need money fast. Your credit cards are maxed and you won’t be paid for another week. You think you can’t get a loan because you have issues. Keep reading and maybe you’ll find out that your problems aren’t really problems at all.
It’s hard to get a loan without backing it up with homes, cars, assets, anything. Banks usually want to see collateral — something they can take away if you don’t make payments. Payday loans are different because they are unsecured personal loans. The “unsecured” part means that you can get cash without putting any of your property on the line. You still need to pay back your debt, but the lender’s not going to take away your house if you don’t.
A cosigner is a person who agrees to pay your debt if you can’t. Many big banks require cosigners if your credit score falls below a certain point, your income isn’t high enough, or you have a shaky credit history. Direct lenders typically don’t need cosigners to give you money. Adding one to your application, though, may boost your chances of getting the cash you want.
Mega-banks have large rooms filled with cubicles, which are filled with mad-at-the-world people who want to deny your loan request. The bigger the bank, the more red tape you’ll have jump through to get what you need. For instance, just to get a mortgage, you must show that less than half of your paycheck goes to bills. How many of us can say that we have that much money left over at the end of the month?
Online payday lenders must still follow federal and state laws, so not everyone gets approved. On the other hand, income standards typically aren’t as strict. For instance, to get a couple hundred dollars by the end of the week, you can show as little as $800 earned each month. That’s before taxes. Adults on SSI can still apply as long as they can show a steady income. Some ways to verify income include paycheck stubs, bank statements, benefits letters, and 1099 forms.
Poor credit is the number one reason people believe they can never get a loan. It’s a catch 22 — you need good credit to get a loan but you need a loan to raise your credit score. The FICO model scores currently run from 300 (the worst) to 850 (the best). About half of America falls into the “good” range of 680 to 740. People with scores of 550 to 620 are considered high risk but may still qualify for next day funds.
Subprime borrowers may find some relief in high interest rate loans. Lenders often accept customers with scores lower than the national average. If the lender reports to one of the credit reporting agencies, that positive payment history can boost your credit score.
Keep in mind that direct payday lenders will still check your credit. The “no credit check” companies are scams that are quickly shut down. A responsible loan company will look at your credit history to find out whether you can afford the additional debt and how likely you are to pay it back. The report can also tell them your history of taking out and repaying short-term installment loans. The most popular credit platform for alternative financing is Telecheck. The big three credit bureaus–Experian, TransUnion, and Equifax–may also get involved.
Your Problems Are No Problem
In the end, you don’t need to worry about most of your fears. Even if you have no collateral, no cosigner, a small income, and risky credit, you still have an opportunity for approval. It’s always worth a shot to see if you can get an extra $300 when you need it most.
The process is fast and simple.
Go to the loan referral form and fill out bits of information.
Be sure to use a valid email address and phone number, as this is how companies will contact you with questions and offers. You can get a small deferred loan in as little as 24 hours.