MIAMI - MAY 20: Alain Filiz shows off some of his credit cards as he pays for items at Lorenzo's Italian Market on May 20, 2009 in Miami, Florida. Members of Congress today passed a bill placing new restrictions on companies that issues credit. The vote follows the Senate passage of the bill, which now heads for President Obama's promised signature. The bill will curb sudden interest rate increases and hidden fees, requiring card companies to tell customers of rate increases 45 days in advance. It will also make it harder for people aged below 21 to be issued credit cards. (Photo by Joe Raedle/Getty Images)

A payday loan is type of financing designed to fill the gap between paydays or to help with covering unexpected expenses. It can become a lifesaver when you need urgent cash. There is no standard definition of a payday loan, however, it usually represents a short-term credit for a small sum of money, of 500 dollars or less. This loan must be typically repaid until your next payday, with fees on top. 

Payday loans differ from personal and other consumer loans. You can get a payday loan online or with the help of a payday lender through an offline store. Each state in America has its own laws surrounding payday loans online. Some of the laws limit the sum you can borrow, while others regulate the amount of interests and fees. Right after you get approved for a payday loan, you receive cash or a check, or have the money transferred into your bank account. 

Within 2 weeks or by your next payday you need to refund the loan in full plus fees. The statistics say, that approximately 2,5 million of American families apply for a payday loan every year. This popularity may be due to several reasons. The first reason is that the biggest part of these people doesn’t have any other way to solve their economical situations. Their credit scores are bad or they have no income at all. The other part of applicants doesn’t feel comfortable to ask their family members or friends for help. Despite the fact, that there are some alternatives to payday loans, you need to put much effort to get one with good rates and fees. There are few requirements to get approved. Moreover, many lenders do not proceed hard credit checks. All you typically need is identification, a bank account in relatively good standing and a steady source of income. However, you cannot expect remunerable conditions. Fees for bad credit payday loans are always higher. 

Guaranteed approval payday loans for bad credit

If your credit history is far from perfect, credit check can’t stop you from applying for a payday loan. Lenders realize that critical life situations happen from time to time, and those applicants with poor credit score also need some option to solve their problems.  Nowadays, lenders make their decisions based not only on an applicant’s financial portfolio. There are different standards showing borrower’s creditworthiness. Lenders usually perform a kind of background investigation, which helps them to be confident that you are able to refund the loan on time. 

Online lenders are among those, who do not perform hard credit checks on guaranteed approval payday loans. The process of the so called “soft credit check” spares a borrower’s credit score from being damaged. 

Soft credit check, also known as “soft pulls”, occurs, for instance, when a lender inspects your credit history without your permission to make sure you qualify for a certain kind of loan. Unlike hard credit checks, soft pulls do not affect your credit scores. Soft credit checks aren’t connected to a specific application for new credit, they’re only visible to you when you look through your credit reports. There is also a possibility to get a payday loan with the lowest rates and repayment terms if you provide a collateral.

Lenders of low credit loans try to get cash to borrowers as soon as possible, so don’t wait to apply for a loan with bad credit. Bad credit score is not the only determinant, which is considered when estimating your loan application, this is why people with poor credit score less than 600 can still get an instant cash loan. The lenders offer the best possible loan options for each case, including bad credit.

How Much Do a Bad Credit Payday Loans Cost?

Bad credit payday loans charges a sum of $20 for each $90 you borrow. The exact amount is not standard across the USA. Each state regulates the costs individually.  It may seem a lot, however as they are short-term they are actually quite reasonable. Late fees, prepayment penalties, other fees can appear if you do not pay back on time. Always pay attention to your due date. Rates and terms will always be set down before you sign the contract.

Even though the loan does cost money, it’s an affordable alternative to overdraft charges, credit card late fees, and bounced checks, especially when you can repay the loan on time and fully.

How Much Can I Borrow with a Payday Loan?

The average payday loan is $350 on a two-week term, according to the CFPB (Consumer Financial Protection Bureau). However, payday loans can start from $50 to $1,000, depending on your state’s laws. Nowadays, 32 states let payday lending with a capped maximum loan amount. The states of Maine, Utah, Wisconsin and Wyoming do not have a cap. Delaware, Idaho and Illinois have the highest cap amount at $1,000, when California and Montana have the lowest at $300. Some states, including Nevada and New Mexico, also limit each payday loan to 25% of the borrower’s monthly income. For the 32 states that do allow payday credits, the cost of the loan, fees and the maximum loan amount are capped.

Here is how you can apply for a bad credit loan

Collect Your Important Personal Information

• A USA Social Security number

• Use a valid email address

• Get your bank account number

• Have proof of steady income

 Complete the Application

• Add your details and contact information

• Provide your income source

• Add all banking information carefully

• Sign the app and send it


Despite the fact that your credit score is far from good, lenders still offer many options to solve different financial situations. The creditors run soft credit inquires in order to make sure you are eligible for a loan. However, there is still basic data you need to provide to get approved for a bad credit loan. Your ID, valid bank account and personal information will be enough to get the approval. Mind the fact, that bad credit payday loans have higher fees, therefore plan your budget before contacting the lender. 

If you find it difficult to choose a particular lender, you can search for a quality lender on the Best Personal Loan Companies website.