What Are Bad Credit Payday loans?

Having bad credit can have a negative impact on your life as a borrower or loan applicant. Sudden unemployment and medical emergencies can leave anyone in financial chaos.Most lenders may judge loan applicants based on their year-old financial issues The first action to rebuild your financial state is to understand what bad credit is.

What is bad credit?

Some lenders (either online or on-site) may look at your credit check score (and other contributing factors) when considering an instant loans application. A good example is the FICO scoring system – it ranges from 300-850 to gauge a loan applicant’s likelihood to repay the loan on time.

In line with this, FICO scores 620 below often fall into the bad credit score range – this will make it difficult for borrowers to get an approval from lenders that only depend on FICO to determine a loan applicant’s eligibility. 

Contributing Factors of Getting a Bad Credit Score

But don’t lose hope, many contributing factors play a part in the credit scoring process. Here are some of the following:

Missed Payments

FICO considers three elements of missed payments; they include:

  • How delayed the payment/s are
  • How long a borrower has gone without missing a payment due date
  • The total amount of missed payments

The credit reporting bureaus track these negative remarks with notations every 30 days (per month).

Delayed or Late Payments

For example, if a borrower took him/her three months late to repay a loan, the account would have a 90-day (3 months) mark on it.

The longer the borrower continues to miss paying on the due date, the more delinquencies have a stronger negative impact on your credit score than a one-time big-time 30-day delay.


Default account

There are times that we can’t keep up on the bills as they pile up. With that being said, many companies consider an account default if a borrower exceeds several months without making arrangements with the lender or settling the missed payments.

Collection notations

Some businesses and companies work with collection agencies to recover the financial loss, should there be any owed money.

If ever that happens, collection notations might appear on a borrower’s credit report.

Collection notations may remain on a borrower’s account even after paying your loan and debt. But, if a lender manually looks at a borrower’s credit report, they can see the improvement and progress towards being financially responsible.

Public financial records

Bankruptcy can stay on a borrower’s credit report for up to 10 years! Plus, it has a significantly negative impact on a person’s credit score. Any civil judgments and tax liens may also be listed on a borrower’s credit report.

On a lighter note, it is possible to remove some public records from the credit report once the borrower satisfies the judgment or the lien.

Foreclosure and repossession of property

Foreclosure indicates a defaulted, secured installment loan. Since the loan is backed by collateral (physical property), the lender takes the agreed property back, if the payments fall behind. 

With that being said, foreclosure refers to mortgages (houses); on the other hand, repossession refers to other types of physical property (this includes vehicles, gadgets, and the like).

In some places, borrowers may receive a deficiency judgment if the lender could not recover the loan amount after selling his/her property at an auction.

High Utilization of Credit Cards

A person’s utilization of credit loans is the ratio of their card’s maximum limit and outstanding balances.

If a person has a lot of maxed-out credit loans, the FICO scoring system indicates this as a negative factor. On a lighter note, you are in full control of this contributing factor. 

All you have to do as a borrower is to lessen your credit card balances and maintain a low utilization. Once you do, your credit score will improve over time.

How to apply for a payday loan online?

Applying for a payday loan online only takes a matter of minutes (even if you have bad credit)

Borrowers like you can simply apply for a loan even if you only use your smartphone or your laptop! In addition to that, loan decisions to either approve or reject an application is instant (100% guaranteed!)

For example, if a loan application is approved before 5:00 PM PT on a weekday, your loan funds will be automatically deposited (transferred) within one business day!  Although access to the loan funds are solely based on how fast the borrower’s bank processes the funds.

00To apply for a payday loan online (even with bad credit), all you need to provide are the following:

  • Your full name
  • An active email address
  • An active mobile and/or telephone number
  • A bank account or a debit card that can accept e-transfers (electronic transfers)

So what are you waiting for? Apply for a payday loan now! Feel free also to read our blog posts about improving your credit score and repairing your credit report.