If you’re in the middle of a financial emergency and you have to get some fast cash – but you have bad credit – there’s something you still can do to get the money you need. There is a very easy way for you to borrow up to $1,500, no matter how bad your credit is.
That’s the good news – and we’ll take a look at how you can do it in a moment.
But there’s some not-so-good news that goes with the territory. And you’ve got to know about that, too, before you take the plunge.
High Interest Rates and Short Payback Periods
Although it’s very easy to get money wired into your bank account within 24 hours there are three major drawbacks involved with the process. The first is that the companies that will lend you money without checking your credit charge very high interest rates.
Most charge between 10% and 25% percent. Some charge a little less, and some charge a little more. For the most part, though, for every hundred dollars you want to borrow you will have to pay back between one hundred ten dollars and one hundred twenty five dollars.
The next piece of bad news is that most companies want you to repay the amount you borrow plus interest within fourteen days. So if you borrow $1500 you’ll have to pay back between $1,650 and $1,875 fourteen days from today.
Okay, let’s say you can deal with the high interest and you think you will be able to repay the money on a timely basis.
When you apply for the loan you may see that the company will most likely extend your loan for another two weeks if you pay a certain minimum amount and are willing to pay for another round of interest.
And that’s the third – and biggest – problem with these types of loans. Many people dig themselves into a hole that is very, very difficult to climb out of.
You see, it’s not necessarily the initial interest that’s the problem – although it is huge sometimes you have no choice and you have to deal with it. The big problem is borrowing more than you are absolutely positive you can pay back within two weeks. And even if you’re absolutely sure, sometimes… well, things happen.
And if things happen you will have to keep on paying ten to twenty-five dollars in interest every two weeks. And that can really add up quickly. And you will still owe however much money you first borrowed.
The Good News – It’s Very Easy to get these Loans
Most of the cash advance or payday loan companies that offer these short term loans have very relaxed acceptance policies. To be approved, for the most part, you just need to be at least eighteen years old, have a regular source of income (generally at least $1,000 per month), have a bank account, and a social security number.
That’s pretty much it.
When you apply for the loan the money will usually be wired into your bank account within 24 hours. And some companies will lend you the money you need in as little as one hour.
The best advice many financial experts give is that you should do everything you can to get the money you need some other way.
However, if you’ve run out of all your other resources and you need to get a pay day loan, there are a number of things that you can do to get the lowest rates.