A bad credit cash advance is also known as a cash advance or payday loan. These types of loans are issued based on the employment information and no credit check is performed. People with bad credit often find that they are unable to obtain financing from larger financing companies and are forced to use bad credit cash advance services.
Bad credit is a rating based on your past payment history. Independent companies called credit bureaus maintain individual credit ratings. They are not affiliated with any financial institutions and their role is to maintain records on credit requests, approved loans, and repayment histories.
In order to qualify for a bad credit cash advance, you will need to be employed for at least six months with the same employer. Your payroll must be paid via direct deposit and you must have at least 60 days of banking transactions in that bank account. No credit check is performed, but many companies will ask for proof of address and photo identification for bad credit cash advance loans.
There are two types of payday loan companies: Internet based or storefront based. To find an Internet based company, use an Internet search tool. To locate a storefront based store, use the business directory for your city.
Apply to a cash advance company to get a bad credit cash advance. Complete the application form with the required personal information, employment history, amount of net pay and payroll frequency. Both online and storefront cash advance companies follow the same process. The documents are reviewed and a loan decision is made based on the information you have provided.
Keep in mind that a cash advance is a very expensive form of financing, with the annual interest rates ranging from 30 to 65%. The amount of the loan available to you is based on a percentage of your take home pay and your payment history with the cash advance company. The total amount of the loan, including interest, fees, and any additional charges are due in full on your next payroll.
If you have bad credit, this may be the only type of financing that you can obtain. Use this service sparingly and find additional income sources to cover the loan before it is due. Avoid recurring cash advance loans, as the interest costs are substantial. Improve your money management skills by speaking with a credit counselor. Many non-profit credit counseling services provide free advice to help improve your credit rating.