After you have paid off most of the bills, you are left with little money by the mid of the month. In such a time, if some urgency like repairing your car, avoiding a late payment or buying some essential items occurs, then there is usually little option left than to take out poor credit payday loans. This is because these loans are given without any delay despite the borrower having late payments, arrears, payment defaults in the past. Such loans, however, may result in new debts as well. Hence you should borrow the money with care.
No credit checks are done on these borrowers in approving the payday loan. this is mainly because the loan is given for 14 days only, assuming that he or she will repay the loan at the time of next paycheque. Hence, the lenders do not see many risks in giving out the loan. However, the borrower must be holding the current job for past six months, getting a fixed monthly salary of $1000 at least. The loan is approved for US citizen, who are 18 years of age or above.
These loans can give you anywhere from as little as $100 to $1500, depending on your monthly salary. Its approval comes up to the period of your next paycheque. Then, if you are not able to repay the loan, it can be rolled over for few more weeks on charging the interest payments. As far as the mode of repayment is concerned, the lenders take back the loaned amount plus interest charges on the due date from your bank checking account.
However, a draw back is that poor credit payday loans carry very high rate of interest, which may go up to 30 percent for two weeks only. But the high rate has nothing to do with your credit history, as the rate will be the same high for good credit borrowers as well. Hence, think twice before borrowing the money, and repay it at the first opportunity. Some of these loans can also be cited on internet at lower rate of interest, if you can meet certain conditions. To improve your rating, pay off the loan on time, without extending it.