What is an Emergency Payday Loan?
An emergency payday loan is a loan borrowed in one lump sum for a short time until your next paycheck. It allows you to cover various expenses, such as:
- Mortgage payment;
- Car or home repairs;
- Medical bills;
- Utility bills;
- Travel expenses.
Eligibility Criteria For Emergency Payday Loans
Almost all Americans can get approved for an emergency payday loan. However, there are several eligibility requirements you should meet:
- Be 18 years or older;
- Be an American citizen or permanent resident;
- Have a phone number and email address;
- Have a steady source of income;
- Have an active bank account.
There may be other requirements depending on the specific state. So check the criteria of your place of residence before applying for a loan.
Can I Get an Emergency Loan with Bad Credit?
You can get an emergency loan even with a bad credit score. Unlike traditional financial institutions, payday lenders don’t focus on your payment history. They don’t need to report to major credit bureaus (Experian, Equifax, and TransUnion) to make an approval decision.
Instead, they pay attention to your income. If you have regular salaries or other types of income like alimony, unemployed benefits, social security, or pension, you can get approved regardless of your credit history.
How Much Does an Emergency Payday Loan Cost?
Payday loans are one of the most expensive loan forms. After you borrow money, you need to return it with an average percentage range (ARP) that reaches 400% APR. Thus, for each $100 borrowed, you need to pay $10-$30.
Can I Get an Emergency Payday Loan on the Same Day?
Borrowers generally get an emergency loan as soon as the next working day. However, all lenders have their own rules. Some loan providers offer same-day deposits if you get approved by noon, so ask your lender about such an option.
Can an Emergency Payday Loan Affect My Credit Score?
Emergency loans will not affect your credit score. Payday lenders don’t perform a hard inquiry that can hurt your credit. Instead, they make only a soft credit check to ensure you can repay a debt. However, the failure of debt repayment can hurt your credit report.
Can I Get an Emergency Loan with No Credit Check?
All lenders want to ensure you can repay your debt. Although payday loans have higher approval rates than other loan forms, payday loan providers perform a soft credit check. However, if you have a stable income and meet other basic lenders’ requirements, you are likely to be approved.