5 Best Payday Loans for Bad Credit [2024]
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Published July 22, 2024 | Updated October 15, 2024
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Payday loans for bad credit are small-dollar, short-term loans. If you have bad credit, a payday loan may seem like a quick solution to get some money to help you till your next payday. However, you should be aware of the risks before you borrow.
These are high-interest loans with short repayment terms, which may make it difficult for you to get out of debt. The annual percentage rates (APR) for a $400 payday loan can range from 140% to 662%.
If you must borrow, compare your options carefully, choose a trustworthy lender, and have a plan to repay the loan by the due date so you can avoid paying any extra fees.
5 Best Payday Loans for Bad Credit
If you must borrow a bad credit payday loan, consider our top five recommendations.
Viva Payday Loans | Advance America | Big Bucks Loans | Main Street Loans | Green Dollar Loans | |
Loan Amounts | $100 to $5,000 | $100 to $1,000 | $100 to $5,000 | $100 to $20,000 | $100 to $5,000 |
APR | 5.99% to 35.99% | 143.29% to 688.28% | 5.99% to 35.99% | 5.99% to 35.99% | 5.99% to 35.99% |
1. Viva Payday Loans- Best for all Types of Credit Scores
- Loan Amounts: $100 to $5,000
- APR: 5.99% to 35.99%
Viva Payday Loans offers loans to borrowers with all FICO ranges. You can apply for the loan online and get approval within minutes. Keep in mind that though the website advertises a maximum APR of 35.99%, those rates are not available to all borrowers. The APR you qualify for may be different.
2. Advance America- Best for Physical Location Network
- Loan Amounts: $100 to $1,000
- APR: 143.29% to 688.28%
Advance America is a large lender that has been offering payday loans in 29 states since 1997. With over 1,400 physical locations, it’s a popular choice for borrowers who prefer to get a loan in person. Loan amounts and APRs can vary by state.
3. Big Bucks Loans- Best for Same-Day Funding
- Loan Amounts: $100 to $5,000
- APR: 5.99% to 35.99%
Big Buck Loans is an online marketplace that allows you to borrow up to $5,000. Larger loan amounts come with a little more flexibility since they’re available for longer terms.
4. Main Street Loans- Best for Larger Loan Amounts
- Loan Amounts: $100 to $20,000
- APR: 5.99% to 35.99%
Main Street Loans works with a variety of lenders that offer online payday loans for bad credit. The application process is quite simple and user-friendly. Keep in mind that smaller loans of under $1,000 may be subject to higher APRs than what’s listed on their website.
5. Green Dollar Loans- Best for Fast Funding
- Loan Amounts: $100 to $5,000
- APR: 5.99% to 35.99%
Green Dollar Loans offers online payday loans for bad credit from direct lenders. Lenders usually have inclusive eligibility requirements and offer fast funding. You may be able to opt for longer terms for larger loan amounts. You’ll typically get the money in your bank account on the next business day.
Methodology
We reviewed 20 payday loans with guaranteed approval based on a number of factors, such as:
- Availability
- Ease of online application
- Loan amounts
- APR range
- Funding speed
- Eligibility requirements
For this list, we chose bad credit payday loans with guaranteed approval. This means that all lenders on this list welcome applications from borrowers with all credit profiles.
Best Uses for Payday Loans for Bad Credit
Most borrowers apply for payday loans with bad credit to pay for everyday expenses, such as groceries, utilities, and rent. These loans come with a high interest rate, so they shouldn’t be used for impulse purchases or things you can do without.
Consider payday loans as a last-resort option when you don’t have money to pay for necessities like groceries or when your rent is due, and you haven’t received your paycheck.
Where To Get a Payday Loan for Bad Credit
You can get a payday loan for bad credit with guaranteed approval online or at physical locations throughout the country. These loans are usually provided by small, local lenders with physical stores. You can walk into the store to apply for the loan and will usually get the money instantly if approved.
How To Choose the Best Payday Loan for Bad Credit
When comparing payday loans for bad credit, there are a number of things you should consider:
- If you’re applying for a loan online, carefully read the terms listed on their website.
- Check the legal status of payday loans in your state and state laws.
- Check to see if the lender has provided any contact details and if there are any support options available, such as phone support or live chat.
- Check to see if the lender is Better Business Bureau (BBB) accredited, and read the reviews of the company online on websites like Trustpilot.
- Make sure the company is licensed to provide payday loans in your state.
- Read the loan contract carefully to understand how the loan works, how much you’ll pay in fees, and what the repayment date is.
How To Apply for a Payday Loan With Bad Credit
Applying for a cash loan with poor credit is easy and straightforward. Here are the steps you’ll need to follow:
- Research payday lenders in your state and make a list of potential lenders.
- Check the lenders’ websites to learn more about their loan amounts, terms, finance charges, late payment fees, and other fees.
- Compare the costs to short-list a few lenders.
- Check the lenders’ reviews on the Better Business Bureau (BBB), Trustpilot, Google, and other review sites.
- Check to see if there are any complaints registered against the company on BBB or the
- Consumer Financial Protection Bureau.
- Gather your documents, like your Social Security number, ID, pay stubs, and bank statements, and fill out your loan application to apply for the loan.
- Wait for the approval and get the loan funds.
Tips for Repaying a Payday Loan With Bad Credit
Borrowing a payday loan with bad credit is risky because you may owe a lot in fees and finance charges if you can’t repay the loan on time. Here are a few tips to follow to avoid getting trapped in this situation:
- Consider all other traditional loan options before you borrow a payday loan.
- Only borrow the least amount of money you can do with.
- Think about whether you’ll have enough money to repay the loan when you get your next paycheck. Keep in mind that you’ll still need money from your paycheck to pay for necessities.
- Avoid using your credit card or borrowing any more money until you pay off the payday loan.
- Consider payday loan consolidation if you owe more than one loan. You’ll have a single monthly payment, and the interest rate will be lower than what you pay on a payday loan.
Exploring Alternatives to Payday Loans for Bad Credit
There are several other options available if you need a bad credit loan in an emergency. Consider these alternatives before you borrow a payday loan for bad credit.
Use Cash Advance Apps
Cash advance apps can provide you with a low-fee or interest-free advance on your paycheck, so they can be a good alternative. Compare apps like Brigit, Dave, and EarnIn to see if you qualify.
Get a Small-Dollar Personal Loan
You may be able to qualify for a bad credit personal loan from an online lender or credit union. Personal loans are more flexible and have lower APRs compared to payday loans. Some financial institutions may also offer no-fee loans that have no origination fees or prepayment penalties.
Use BNPL for Purchases
If you need money for in-store or online purchases, you can use apps like Klarna and Affirm to split up the purchase amount, often for no fees or interest charges. However, be sure you’re aware of buy now, pay later risks if you plan to use these apps.
Borrow Money From Friends or Family
Sometimes, the best thing to do is to ask for help. Your friends or family members may be able to help you out if you’re in a tough financial situation. You can get a lump sum amount for emergencies at a low interest rate even if you don’t have perfect credit. Be sure to repay the money on time so it doesn’t harm your personal relationships.
Use Payday Loans Sparingly and Only for Emergencies
Payday loans for bad credit may help you pay for car repairs and utilities when you’re in a tight spot and need quick cash, but they’re not a long-term solution. If you must borrow a payday loan for an emergency, be sure to compare the costs and have a plan to repay them on time.
When possible, look for other alternatives like installment loans and cash advances that are often safer and cheaper.