by Ben Sweiry ·
Modified on 20 October, 2023
Yes, you can get a loan with bad credit with Dime Alley! Even if you have a poor credit score, there are plenty of opportunities to get a loan with bad credit. Many lenders are committed to helping borrowers with all kinds of credit histories so that you can apply for that extra bit of cash that you need to help you until your next payday.
While some traditional banks may reject you for a loan on the basis of a poor credit history, you can still apply for a payday loan through alternative means – namely online brokers – and your credit score will not be affected in any way.
However, it is important to bear in mind that lenders will likely offer you a loan with higher interest rates and therefore a more expensive loan plan.
Key Points:
- Many lenders’ priority is to help borrowers with imperfect credit histories secure a loan, meaning it is possible.
- You can check your credit score via the FICO website or Credit Karma – a credit score is a number between 300 and 850 and indicates the strength of your financial history.
- A credit score of 700 or above is ‘good.’ The average score lies between 600 – 750. With a score below 600, you may find it more challenging to borrow; it’s still possible though!
- Often, lenders will provide loans with a higher interest rate to accommodate candidates with a lower credit rating.
What is A Credit Score?
A credit score is designed to help lenders decide whether an applicant is an appropriate candidate for a loan. Banks and lenders want to know how much of a risk a potential customer might be for defaulting on their loans.
A good credit score indicates that an applicant is likely to stick to a repayment plan, whereas a bad credit score suggests that the applicant will be a higher risk and that a lender’s money isn’t in the most reliable of hands. Credit Bureaus look at your borrowing history and see if you have been able to repay debts in the past. This means that banks and lenders can look at your score to gauge how trustworthy you are.
How Can I Check My Credit Score?
Being aware of your credit score can alert you to potential risk factors such as errors or fraud, and can spur you on to improve it. You can check your credit score with services such as the FICO website or Credit Karma. Many loan providers even offer a credit check as part of their services.
A FICO Score is a well known and widely-used credit check service. Banks and lenders use it as a metric to determine how likely you are to repay them. The score you receive from FICO is based on multiple factors including payment history, how much you owe, the length of your credit history and other factors.
Am I Eligible for a Payday Loan if I have Bad Credit?
When applying for a payday loan, there are a few requirements you must meet – but these are not demanding.
Firstly, you must be at least 18 years of age or older and you must be a U.S. resident. You need to have a checking account, which your payday loan will need to be deposited into, and you must have a consistent income and be earning at least $800 per month.
The good news is that even without the strongest credit rating, you’ll likely be able to secure some form of short-term loan, either with higher interest rates, or perhaps a secured loan using your vehicle as collateral. You may also need to send in a previous pay-stub as a proof of income. Lenders will often require this sort of documentation if you have a lower credit rating.
How Do I Apply?
Through researching loans online, you can find various websites, lenders and brokers who would consider becoming your lending partner.
The application process is quick, easy, all-online and completely free to do, and will not affect your credit score in the slightest. The process takes less than 5 minutes, and the fact that it is completely online means that wherever you are in the U.S. you can apply for a payday loan.
Once you’ve provided your details and decided how much you need to borrow and for how long you will receive an instant decision on your loan, letting you know if you have been accepted. If you are accepted, you’ll receive your funds that same day in one lump sum, which makes a payday loan one of the quickest and easiest ways to borrow money short-term.
With Dime Alley, you can borrow from $100 up to $35,000 and choose to repay your loan from as quickly as 2 weeks all the way up to to 5 years.
Why Should I Apply For A Payday Loan?
A payday loan may be a sensible choice if you are facing a temporary financial problem. We all come across unforeseen expenses, such as car repairs, hospital or veterinary bills, from time to time. In times like these, a payday loan may be an excellent way to get cash quickly.
Once accepted, you will see the cash in your account the very same day!
Payday Loans vs Traditional Bank Loans
If you are considering a payday to cover an unexpected one-off expense, you don’t need to worry about the loan affecting your credit. You should remember that payday loans are meant for cases of cash emergencies, not shopping or frivolous spending. You should also only ever borrow money that you know you will be able to repay.
If you need to borrow a large amount of money or are looking for a long-term loan, a payday loan might not be the best option. Unlike more traditional loans, a payday loan is designed for short-term use. A more traditional loan will take into account your credit score and bad credit will often mean that you would not able to secure a traditional bank loan.