Bad credit loans have gained popularity over the years. Today, millions of Australians rely on these loans to settle their immediate financial challenges. Unlike other types of loans, payday loans are approved within the shortest time. In less than 24 hours, you are assured of money in your bank account.
Despite their popularity, there are lots of people still struggling to get their payday loan applications approved. Here, we will advise you on some tips you can use to be assured of approved bad credit payday loans, but first, you need to know whether you qualify for these loans.
Are you Eligible for a Payday Loan?
Payday loans have the simplest qualifications. Before you think of applying for these loans, make sure that:
- You are at least 18 years of age
- You are an Australian citizen or live in the country legally
- You have a stable source of income
Bad credit payday loans are for people with a bad credit score. This may be as a result of unpaid bank loans, non-payment of credit card installments, or poor management of your credit cards.
Most banks offering financial solutions depend on credit scores to determine your loan eligibility. This simply means that with a bad credit score, you are disqualified from borrowing from banks and other financial companies. Thanks to payday loan lenders, you can now get financial help regardless of your credit score.
Who Needs to Apply for Bad Credit Payday Loans?
Payday loans are short-term loans that should be paid within the next 30 days. Due to their high-interest rates, they are best suitable for people with emergency financial needs. Sometimes, these loans are commonly known as emergency or advance loans hence their fast approval.
How Do I Get My Payday Loan Application Approved?
You have documents to prove that you are eligible for bad credit payday loans. However, you may have been unsuccessfully applying for payday loans. Besides your qualification, there must be reasons why your applications were not approved. Here are great suggestions and mistakes you need to avoid to be assured of a bad credit payday loan approval.
Make Sure That You Are Dealing With A Reputable Lender
With the high number of payday loan lenders, it is evident that some of these lenders are scammers. Before you provide your personal or bank account details, make sure that you are dealing with a registered, accredited, and reputable payday lender. A lot of people have fallen prey to scammers.
To determine an accredited lender, check online for their company’s registration, reviews, and if their web page has security encryption.
Choose The Right Lender For Your Bad Credit Score
Be sure to consider the lender’s terms and conditions. Different lenders lookout for different requirements when analyzing your payday loan applications. First, not all payday loan lenders offer bad credit loans. Before you make a payday loan application, you first need to determine whether the lender offers loans to applicants with bad credit scores.
After finding out about this, check on their credit score limits. Some lenders will demand a pre-determined credit score limit to qualify for their instant loans. If your credit score is below their minimum score requirement, move to another lender. Take your time to research the right lender for your bad credit score to successfully apply for a bad credit loan.
Always Apply Online
There are thousands of payday loan lenders in Australia and there are many reasons why it is best to apply online over in person.
First, online applications are approved faster. While in person you have to drive to the lender and wait for manual document verification, it takes less than 2 minutes to submit your loan application form online.
Second, you need to provide fewer documents when applying online. In fact, there are higher approval chances of online applications over physical applications. Once you submit your application online, you can have cash in your account within the next one hour to 24 hours.
Make Sure That You Provide Correct Information
Any false information may lead to disapproval of your application. Some of the details you need to provide are your personal and employment details. Make sure that every detail you provide is factual. In case of any suspicion, your lender may fail to approve your application.
Consider Your Debt-to-Income Ratio
Payday loan lenders usually deduct the amount borrowed directly from your bank account on your next payday. This is the main reason why they want to know your monthly income. Applying for an amount above your monthly salary will automatically lead to disapproval. We also advise that you consider the debt to income ratio. If you earn a monthly income of $1000, don’t expect a payday loan approval of $1000. Payday loan lenders will highly consider a loan that is way below your monthly salary. The lower the ratio, the higher the chances of your loan approval.
Provide Documentation On Time
Your payday lender may need some documents to approve your loan request. If asked to send them over, make sure that you send them on time. These documents may include your bank account statement. It is advisable that you have these documents ready before you submit your payday loan application.
With these tips, you will likely be assured of a payday loan approval. These are the best loans for emergency financial problems. Have you been trying to apply for personal loans to no avail? Payday loans are your preferred alternative to all your financial needs. You can apply for a bad credit payday loan to pay your school fees, medical bills, rent, or any other emergencies.