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Individuals with bad credit can take out a payday loan without negatively impacting their credit score in the long term.

Can I get payday loans with bad credit?

Payday loans are one of the most viable options for those with bad credit as, unlike other types of credit, they will not reject applicants with poor credit or no credit score.

Do payday loan companies check your credit?

Most payday lenders will not run a credit check. This means that not only can you be approved for a payday loan even if you have bad credit, but it means that the payday loan will not appear on your credit report or impact your credit score. Even after accepting the loan, the payday loan will not appear on your credit report.

On the other hand, if you are hoping to take out a payday loan as a way of building credit, this is not the way to do it as payday loans will not help to improve your credit score.

Key Points

  • Even with bad credit, borrowers can apply for a payday loan
  • Worse credit scores typically mean higher interest and less favorable loan terms
  • Borrowers may be vulnerable to predatory lending so must be careful

What credit score do you need to get a payday loan?

Unlike other credit or loan types, you do not need a credit score in order to get a payday loan. Some payday lenders will not even check your traditional credit score. In a lot of cases, you need only have a valid form of identification, an existing bank account and proof of income.

How quickly can you get a payday loan if you have bad credit?

The majority of payday loan options available will offer quick funding, usually within 1-2 business days, if not immediately. Payday loans are designed to cover emergency payments in the short term so lenders usually understand that time is of the essence.

Even if you have poor credit, you can apply for payday loans quickly and have your application approved within 24 hours.

Is a payday loan the easiest loan to get approved for?

Payday loans are known to be one of the easiest loans to be approved for. Others include car title loans, pawn shop loans and personal instalment loans. All of these are designed to be short-term cash solutions for borrowers and to give them fast access to cash – they are not supposed to be a long-term solution for ongoing financial problems.

How can someone with bad credit apply for a payday loan?

Payday loans are some of the easiest loans to apply for, even for those with bad credit. Here is what you need to do:

Prepare relevant information. Unlike other types of credit or loans, thorough checks are not carried out for payday loans. You need only provide the following information:

  • Valid form of identification
  • Source of income (e.g. paystub)
  • Active bank account
  • Active email address

In most cases, you can apply for a payday loan online. The application will include your contact information, employment information and bank details. After the application is submitted, it will need to be approved. This usually happens within 24 hours. Many lenders also offer the option to apply in person.

If you are approved for the loan, you should receive the money either on the same day or within 1-2 days. Once the funds are received, you will need to repay your loan when you receive your next paycheck (usually two to four weeks).


It is possible to take out a payday loan with bad credit but you may also want to consider alternative options.

Should I get a payday loan if I have bad credit?

Payday loans are designed to provide a quick fix for unexpected or emergency situations. Therefore, for those with ongoing financial difficulties, payday loans are probably not the best solution.

Before taking out a payday loan, remember that these loans are notorious for their extreme interest rates. If there is a chance that you will be unable to pay the loan back on the due date, you should avoid taking out a payday loan as it could end up costing you a lot of money. Typically you will pay between $15 to $20 for every $100 you borrow and any late payments will incur additional interest and fees.

However, there are some benefits of taking out a payday loan for those with bad credit. The application is easier than with other loans and it is more likely that you will be approved. Additionally, the application process tends to be very quick meaning that you could be approved for funds very quickly.

Unlike other types of credit or loans, payday lenders look at factors other than your credit score to determine your eligibility. For those with bad credit, this can be one of the most viable options for receiving short-term funds.

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