Friday, October 29, 2010

How to Apply For Online Payday Loans Even With Poor Credit

How to Apply For Online Payday Loans Even With Poor Credit

As many U.S. states are imposing stricter regulations on payday loans, more and more businesses have focused their operations online. As a result, you can now apply for a loan right from your computer or laptop and get instantly approved. At the same time, not all online payday loan lenders are created equal.

First, one of the most common questions people ask is how to apply for a loan with poor credit. You should keep in mind, though, that most people who apply for this type of personal financing, have less than perfect credit. As a result, payday lenders have to add a high risk premium to the interest rate. 

That is why these loans are also referred to as high risk personal loans and are being regulated by the states because of their outrageously high interest rates. So, you shouldn't worry about your bad or even terrible credit score. In addition, some payday lenders, like the one referenced below, do not even check your credit history at all.

As you probably know, payday loans are short-term funds that can be borrowed for less than a month, in most cases. This may definitely impose a strain on your personal finances as you have to come up with the money faster. 

At the same time, the very purpose of a payday loan is to cover some urgent expenses, like a cell phone bill. Nowadays, however, there are companies with massive online lender networks that specialize in flexible- and long-term payday loans.

Another important aspect has to do with the application process itself. While some people think they have better odds of being approved if they apply to direct lenders only, the truth is that unless you are familiar with the lender's application standards, there is no way to tell in advance whether you will be approved or not. 

This means that you might have to fill out dozens of applications before you eventually get approved. Your best bet is to apply to several direct lenders with a single application in order to save time. Many online lender networks support instant approval applications with processing times under 3 minutes.

Finally, after you get approved, how soon can you expect your funds to be wired to you? Most online lenders are set at the Money Overnight method, so you can expect to receive your funds the very next business day as long as you apply before 4 p.m., EST. The funds are usually wired via direct deposit to your checking or savings account, or via an instant cash transfer, such as MoneyGram.

The good news is that more advanced online loan lenders like 100 Day can find the lowest interest rates with flexible pay-off periods (up to 100 days) that will best match your credit profile. This is possible because your application is sent out to over a hundred direct lenders for review, which also means that you will need to fill out only one short application instead of a dozen.

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