If you are struggling with an unexpected expense but have bad credit, it often seems quite impossible to access quick cash. In case if you are choosing the traditional loan options, a bad credit score would be a big barrier to even approving the application. It just results in additional stress when bills pile up and you’re unsure how to cover them.
However, small payday loans for bad credit often range from $200 to $2,000 and can be the go-to solution. Along with the fast access to the funding, there will be a very minor financial instability due to lower interest rates and the associated APR.
Read on to know more about the payday loan options, the benefits they offer, and what you need to qualify, even with a poor credit score.
What Are Small Payday Loans?
Small payday loans are short-term loans with high-interest rates that range from $200 to $2,000. These loans are designed to fulfill the immediate financial needs and are recommended for repayment at the next payday of the borrowers. Like other payday loan types, they are unsecured, and typically processed with no collateral required.
Instead, a payday lender asks for a post-dated check or access to the borrower’s bank account. It is enough to approve the application, and as a guarantee of repayment.
However, due to the fast approval process and minimal credit requirements, small payday loans are widely popular among those with urgent cash needs and also not enough financial stability to adjust for the higher interest rate of the loan processing.
Can You Obtain a Payday Loan with Bad Credit?
Yes, you can get payday loans for any amount, even with a poor credit history. Most of the payday lenders do not go for a traditional credit check. Instead, they check for the borrowers’ ability to repay the loan.
For instance, they go through the employment status or income verification. Also, if you miss a repayment, there’s a higher chance the payday lender reports the delinquency to credit bureaus. All you need to consider are the additional late fees and the increase in your debt.
Advantages and Considerations of Small Payday Loans
Beyond the far more advantages, the payday lending option is not without drawbacks. Go through the quick table below and learn about the benefits and the special facts to consider for obtaining a payday loan:
| Pros | Cons |
| Offers quick access to accessDoesn’t require a credit checkEasy approval process Widely available for urgent financial needs.Comes with various ranges in the loan amount | Come with extremely high fees and interest ratesVery short period for repaymentOften results in financial instability in the long runDoesn’t have any long-term financial benefits |
How to Qualify for a Payday Loan with Bad Credit
To get a payday loan, here are a few essential requirements you must fulfill:
- U.S. Citizen or Permanent Resident: You must be a legal resident of the country.
- Minimum Income: Payday lender typically asks for proof of steady income. No matter—it can be either from employment or government benefits.
- Active Bank Account: An active bank account is a must for depositing and withdrawing the loan amount into that account.
- Age Requirements: You must be at least 18 years old to get the loan.
- Valid Contact Information: Most other payday lenders ask for a phone number and email address to process the application efficiently.
How to Get a $200–$2,000 Payday Loan Fast?
To get a hassle-free and faster payday loan, first, you have to look for reputable payday lenders. You can either go for the online or in-person option that offers quick processing and approval.
Most of the payday lenders have an optimized application process available online through which you can apply for the loan right from the comfort of your home.
Just check out their website, log in, fill in with needed credentials, set the loan amount, and submit. If everything goes alright, the payday lender will approve well within the shortest possible time.
Depending on the loan type, you can get the loan approved within the same day or even the same hour. Once approved, the loan amount is usually deposited into your bank account within 24 hours or less.
Common Small Payday Loan For Bad Credit
Here we have listed some common small payday loan options that borrowers often ask for, depending on their urgent financial needs:
1. $200 Payday Loan
$200 is the most popular small, short-term loan, which is borrowed mainly to get quick cash for minor, unexpected expenses. It is mainly used for urgent financial needs with an agreement to repay the loan with the next paycheck.
- Purpose: People with small and immediate financial needs can apply for such a small amount. It includes paying utility bills, fixing a car, or covering a medical emergency. Through payday lending, they can get fast relief for urgent cash.
- Average Fees: The charges and interest fees for a $200 payday loan can vary depending on the lender’s loan terms. However, in general, you need to consider charges between $30 and $60. It is calculated with the flat fee of $15–$30 per $100 borrowed
- APR: The APR on a $200 payday loan is extremely high, which often exceeds between 300% to 500%, or even more. This APR is calculated based on the loan’s fees and repayment terms, which can go higher due to non-repayment.
2. $300 Payday Loan
This short-term loan is designed to cover a temporary cash need and provide quick financial relief for financial needs.
- Purpose: A $300 Payday Loan is typically used for slightly larger unexpected expenses. You can use it for car repairs, medical bills, or replacing essential household items. It offers immediate access to funds when there is a short gap between paydays.
- Average Fees: As the flat fee of $15–$30 per $100 borrowed, you need to pay about $45 to $90 for about $300 Payday Loan. However, the exact amount may vary depending on the lender and the state’s regulations.
- APR: The APR for this loan can range from 300% to 500%. As the payday loans are short-term and high-risk, it is not uncommon APR can be higher than traditional loans.
3. $500 Payday Loan
A $500 payday loan provides more substantial funds and is accessible to individuals with larger and unexpected financial needs.
- Purpose: The loan is typically used for bigger emergencies. This includes medical expenses, car repairs, or overdue bills. Such a large amount helps manage urgent cash and cannot wait until the next paycheck.
- Average Fees: For a $500 payday loan, you need to consider about $75 to $150 as the interest fees along with the capital amount you have borrowed. The amount is estimated at a rate of $15-$30 per $100 borrowed.
- APR: The exact APR on a $500 payday loan varies depending on various factors such as state regulations or lender conditions. Typically, it ranges from 300% to 500%.
4. $700 Payday Loan
$700 payday loans offer a larger sum of funding to manage urgent needs.
- Purpose: It is typically used for urgent expenses with larger amounts. This includes home repairs, medical bills, or paying off multiple overdue bills.
- Average Fees: You need to consider $105 and $210 as the interest fees for a $700 loan. The flat fees for this loan amount are often set at about $15–$30 per $100 borrowed. But the amount can vary depending on the lender’s loan terms and conditions.
- APR: The APR on a $700 loan amount typically ranges between 300% to 500%, or even goes higher. Without the timely repayment, you need to pay additional charges as the debt cycle or the rollover fees.
5. $1,000 Payday Loan
A $1000 payday loan option offers a large amount of cash to deal with the urgency in life.
- Purpose: The loan is used for larger financial emergencies. Such as the individual may need to cover the medical bills, home repairs, car repairs, or even complete the multiple overdue bills.
- Average Fees: The interest fees for the $1000 payday loan typically range from $150 to $300. With the general flat fee of $15–$30 per $100 borrowed, you can estimate this cost. However, this flat fee charge usually varies depending on the different lenders’ loan terms.
- APR: As the APR rate for the $1000 payday loan, you may need to consider 300% to 500%. The amount depends on the loan’s fee structure and repayment terms. Even if it can increase skyrocket, if you are trapped in a continual debt cycle.
6. $1,500 Payday Loan
A $1,500 payday loan offers a higher amount of funding for urgent financial needs.
- Purpose: People with such urgencies typically ask for this loan due to several reasons. This may include repaying medical expenses, major car repairs, paying off multiple bills, or covering large home repairs.
- Average Fees: The interest fees for the $1,500 payday loan amount are usually higher, ranging between $225 to $450. It is the calculation based on $15–$30 per $100 borrowed. Depending on the state regulations, some states set caps on payday loan fees, so it is hard to predict the amount of charges for the locations.
- APR: The APR for a $1,500 payday loan can be extremely high. It can range from 400% to 600%, or even more.
7. $2,000 Payday Loan
A $2,000 payday loan is one of the largest amounts available in the payday loan market.
- Purpose: Mostly, the loan is used for significant financial emergencies. You may need to pay for major medical procedures or repairing essential household items. Most often, it is used to consolidate multiple smaller debts into one manageable payment.
- Average Fees: The interest fees or charge for a $2,000 payday loan typically range between $300 to $600, estimated from the flat fee of $15–$30 per $100 borrowed.
- APR: Like the interest rates, the APR for a $2,000 payday loan is extremely high. It is often ranged between 400% to 700%, or even higher.
In Closing
Small payday loans can be a quick financial relief, especially with a bad credit history. Though one can get the urgent funding, they may need to consider high interest rates and short repayment periods.
However, it is a must to caution about the associated fees before heading to the lender. Otherwise, there will be higher chances of falling into a debt cycle. Before choosing a payday lender, check and ensure you are fully clear about their terms and have a clear repayment plan.
