If you're looking for a cash advance with bad credit, you may be feeling a bit hopeless.
It can seem tough to find lenders who will work with you if your credit score is low. However, there are still options available to you.
In this article, we will discuss eight tips for how to get a cash advance with bad credit. We'll help you understand what a cash advance is, what bad credit is, and where you can go to get cash advance loans with bad credit.
So, don't give up yet. There are still ways for you to get the cash that you need.
What Is a Cash Advance?
A cash advance is a short-term loan that you can use to cover emergency expenses. It's a great option if you need cash quickly. Cash advances are typically unsecured loans, which means that you don't need to put up any collateral.
What Is a Bad Credit?
A bad credit score is typically defined as anything below 600. It can be difficult to get approved for traditional loans when your credit score is low. The good news is that there are still lenders who will work with you if you have bad credit.
How to Get a Cash Advance With Bad Credit
There are several ways that you can get a cash advance with bad credit. You can apply for a loan through a bank or credit union, or you can try to find a lender online. However, be aware that the interest rates on these loans will be higher than loans for borrowers with good credit.
8 Tips for Securing a Cash Advance With Bad Credit
Here are eight tips to help you get the cash that you need.
Check Your Credit Score
Before you apply for any type of loan, check your credit score. Doing so will give you an idea of what lenders are likely to offer you. You can go to the three major credit bureaus, Equifax, TransUnion, and Experian, once per year to get a free credit report.
Work to Improve Your Credit Score
Look at your credit report and see if you notice major errors. If you do, work on fixing those errors before applying for the loan. If you improve your credit score, you save money on interest and fees.
Get Your Financial Details Ready
Typically, your bad credit lender will use a preliminary application to decide whether or not to give you a cash advance loan. The lender will use a soft credit check, which won't affect your credit score. The soft check tells the lender if you will qualify. The process will also tell you which rates you may qualify for.
Be prepared with your financial details before you start the application process. The lender will ask about the following details:
- Income stubs
- Social Security Number
- Date of birth
- Purpose of the loan
Find a Lender Who Specializes in Bad Credit Loans
Some lenders specialize in bad credit loans. These lenders are more likely to work with you even if your credit score is low. Take time to carefully research which lenders will more likely give a cash advance to someone with bad credit.
Ask if Your Lender Will Report to the Credit Bureaus
Some bad credit lenders don't report your payment history to the three credit bureaus. This means that you won't be able to improve your credit score by taking out a cash advance loan.
Ask the lender about their reporting practices before you apply for a loan. Go with one that will report your future pay-off schedule. Over time, this will help to improve your credit score.
Compare Interest Rates
Check with more than one lender during this process. Compare interest rates and loan terms as you work toward getting the best cash advance loan. Using the APR, ask yourself how much the loan will cost you long term. The APR represents the interest rate and other associated finance charges.
Double-Check for Hidden Costs
Bad credit loans will come with higher costs than those provided to people with better credit. You should make sure you're not getting taken advantage of, though. Read the loan agreement in full. Look for hidden costs that no one told you about during verbal communications.
Consider a Cosigner
If you're finding it especially difficult to secure a cash advance, you may want to consider finding a cosigner for your loan. A cosigner is someone who agrees to repay the loan if you can't. Some lenders who wouldn't give you a cash advance based on your credit score alone will reconsider if you have a cosigner.
Where to Get Cash Advance Loans With Bad Credit
Where can I get a cash advance with bad credit? That is a great question. Many banking institutions will help you get a cash advance with bad credit. Assess which type of lender fits best with your current banking relationships and choose from these types:
- Credit union
- Credit card company
- Online lender
- Traditional bank
- Friends or relatives
- Payday lender
Credit unions offer cash advances to their members at lower interest rates than traditional banks. Credit card companies will offer what’s called a merchant cash advance with bad credit.
Getting an online cash advance with bad credit typically has less stringent qualifications than traditional lenders. However, a cash advance with bad credit online option may result in paying higher interest rates.
You should probably consider friends, relatives, and payday lenders as the last possible options. Loans can sometimes cause good relationships to go bad. An instant payday cash advance with bad credit may seem attractive. However, payday loans cost the most. They typically have high-interest rates and require you to pay the loan back within two weeks.
How can I get a cash advance with bad credit? Well, you now know that you shouldn't automatically assume you can't get a cash advance with bad credit.
Use these tips to increase your chances of gaining approval for a cash advance loan. Compare bad credit cash advance interest rates and terms to find the best deal. Being proactive will help you secure an online cash advance when you have bad credit.
About the Author, Madison Taylor
Madison Taylor is the Brand Ambassador at ROK Financial. She is responsible for raising brand awareness and business relationships with business owners across the country. Madison loves that she plays a small role in getting Business Back To Business Through Simple Business Financing and looks forward to hearing what you think about the blogs she creates! Madison has been working in the financial space for six years, and loves it! When she is not at work, you will find her at home learning a new recipe to test out on her family or going on new adventures with her friends.