First of all, regular loans from banks and credit unions that can be repaid over time in installment payments generally require a high credit score and also collateral for a loan. Collateral means the title to a vehicle or a second mortgage on a home. This is how banks and credit unions secure their interests in the money loaned to customers for a period of time, usually measured in months, sometimes years. They have ownership interest in your collateral and that secures their loan during the period of the bad credit payday loan repayment.

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Instant cash, on the other hand for those in need of payday loan help, is loaned for very brief periods of time with no credit checks and no collateral required. A good credit score and equity in a vehicle or a home is unnecessary because the lender secures the loan against the borrowers’ next paycheck instead. This system is entirely different than the system that banks and credit unions utilize.

Repayment of your instant cash obtained through a payday loan lender is authorized at the same time you complete a loan application. When you provide bank routing information so that the lender can deposit the loan funds wirelessly, you are also authorizing a wireless debit on the date of your next paycheck. That debit on the bad credit payday loan will be in the amount of your entire loan, plus interest and fees.

Whenever you are experiencing a financial emergency between paydays and you need to get some quick cash, that’s a good time to consider a pay day loan. Have you already checked out some retail loan stores locally? Have you researched various websites online?

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Get Cash the Next Day With a Payday Loan!

If you have seen a loan application at a local loan store or printed an application off a website you found online you’ve discovered that quick loan applications are short and simple, making it easy to apply anywhere. Don’t forget to bring a recent pay stub and your ID cards, so you’ll have what you need to complete your application in person or online.

But, you may be wondering if former employers or friends and family members might be contacted to provide credit references. That won’t be happening because your credit is not an issue for these short term loans.

And you may also be wondering if a credit check will be required for a pay day loan. It will not be required because qualification for these loans is not determined by credit scores at all. Borrowers who are employed and who receive a regular paycheck should be able to qualify for cash advance loans. You will be relieved to know that your credit history and your credit score are not a part of the application process in any way.

No credit check or credit references will ever be required when you apply for a bad credit pay day loan.

Understanding the difference between installment loans from banks and credit unions and single pay loans from payday lenders is a critical necessity. When people don’t realize that they are signing loan documents obligating themselves for a large debit from their next paycheck they can face serious inconveniences on payday. That is not the goal, so it’s important to make sure you read all your loan documents carefully before signing them and receiving your instant cash.