Money Loan with Bad Credit

Persons with bad credit often have a very hard time getting extra cash in emergency situations.

Since they can’t get credit cards or bank loans many people with bad credit turn to money loans. Money loans are small cash loans usually made by nontraditional lenders such as check cash outlets, pawn shops and online lenders. Money loans are also called instant loans or cash advances and usually have to be paid back fairly quickly.

It’s possible for people with bad credit to get money loans because money lenders base their lending decisions on a person’s income. Since credit scores are not based upon a person’s income, many people with bad credit have money. Money lenders take advantage of this and lend to people with bad credit.

Where to find money loans

There are many businesses in most communities that make money loans to people with bad credit. Pawn shops, check cashing stores, liquor stores, convenience stores, fast cash stores and some large retailers make money loans. There are also many online lenders that make money loans or cash advances. There are electronic kiosks similar to ATMS in some businesses that make money loans as well.

The advantage to getting a money loan from a store is that you won’t need a bank account or checking account to get such a loan. Many stores that cash pay checks will make loans to people if they agree to pay the loan back on their next payday. Another advantage to getting a loan from a store is that they pay directly in cash. A drawback to these loans is that a person may have to buy money orders to pay off bills.

Online cash advances

Many online lenders make money loans in the form of cash advances. A cash advance is an electronic transfer of money directly into a person’s bank account. To get a cash advance from an online lender a person will need a bank account. Most online lenders require borrowers to pay off cash advances with an electronic transfer from their bank account.

Requirements for money loans

Most money lenders require borrowers to present proof of income before they make a money loan. This proof can be a pay stub or a bank statement that shows income or a letter from an employer verifying the borrower’s job status. Many money lenders will also call a borrower’s employer to confirm employment.

Most money lenders will require fast repayment of the loan, usually on the next payday. It is a good idea to pay money loans off fast because the interest charged on them is very high. The interest is often so high that it can quickly double or triple the amount of money owed to the lender.