It is quite a difficult situation when you need to get emergency loan. However, there is still a chance for you to obtain the cash you need without being rejected because of your bad credit history. How? By going with bad credit pay day lenders specializing in bad credit payday loans.
Where Can You Find Bad Credit Pay Day Lenders?
You won’t probably be able to locate any bad credit pay day lenders locally. Luckily though, if you go with online pay day loan lenders, you will have far more options and much fewer hassles. Just visit any search engine of your choice and do a simple search for bad credit pay day lenders. You’ll be surprised with the results.
Do Bad Credit Lenders Charge More?
Well, to be honest, yes. Bad credit pay day loans cost you more in fees because of no credit check. Typical rate of interest for this type of loan is around 15% – 30%.
What If You Don’t Pay Back?
The process is fully automated, so the lender is allowed to withdraw the loan amount directly from your bank account on the due date, so what happens first is that you are charged for an overdraft by your own bank. They may even close your account, if you fail to repay them. In addition, this will greatly affect your credit score.
Beside problems with the bank, pay day lender will also have to react which will result in your further credit score drop. The lender will be adding on penalty fees to the initial loan amount until you pay it off in full. If you don’t pay back for a few months, you may be sued by a collection agency for non-payment on your due bills.