It goes without saying that it will be more difficult for you to borrow money if you have bad credit and low income.  Either of these issues alone can prevent you from getting a loan, and when you combine the two, it can seem impossible.   However, there are loans available even for people with bad credit and low income.

You can forget applying through a typical bank, though.  Traditional lenders very rarely lend to people who don’t have good credit and a decent income level.  You are most likely wasting your time if you apply for a loan through a regular bank.  Instead, you should look for lenders that specialize in loans for people with poor credit.  Many of these lenders don’t even look at your credit report, so the fact that your credit is bad won’t matter at all.  Unlike banks, which must watch their balance sheets and avoid bad debts, many bad credit lenders will offer a short-term loan to anyone who meets some basic eligibility requirements.

Payday Loans for People with Low Income

Payday loans are one way for people with bad credit and low income to borrow money.  However, these loans come with high fees, so they should be used only if absolutely necessary.  Some people get into a trap where they end up having to keep getting more payday loans to pay off their payday loans because the fees make it difficult to ever get caught up.

The eligibility requirements for getting a payday loan are that you have a job, are over 18, are a US citizen, and have a checking account.  Normally, you’ll have to write a check or agree to a bank draft at the time that you take out the loan.  The check or bank draft will not be put through until the loan is due.  You must be sure that the money is there in time to pay back the loan or you could accumulate additional fees from both your bank and the lender.

In most cases, the payday lender will send the money you borrow directly to your bank account in 24 hours or less.  These loans generally need to be paid off within 30 days.  They are good for quick money in emergency situations, but should not be relied on for normal living expenses.

Because payday loans are so easy to qualify for, they are a popular choice for people with low income.  They provide a way to obtain financing quickly when you are in trouble.  For example, if you are about to be evicted or have a shutoff notice on your electric bill, you can get money quickly enough to take care of the problem.  However, since these loans are so expensive, you should consider other alternatives first, such as making payment arrangements directly with the landlord or electric company.