A bad credit payday loan could get you out of a sticky financial situation, without the need to commit to long-term debt.
We all have times where we run into unexpected expense, from car repairs to dental work and just about anything in between. When you need a little extra cash to get through to your next payday, there is the option of taking out a bad credit cash loan.
A selection of bad credit payday loans
If you’re stuck with bad credit, compare the loans below to see what offer you may be eligible for:
Cash Converters Medium Personal Loan
Cash Converters offers medium term loans up to $4,600 for when you're in need of money and receive approved funds in your account in two business days.
- Interest Rate From: 48% p.a.
- Interest Rate Type: Fixed
- Application Fee: $400
- Minimum Loan Term: 4 year
- Maximum Loan Term: 24 year
- Minimum Loan Amount: $2,050
- Maximum Loan Amount: $4,600
Swoosh Finance offers fast, reliable and hassle-free secured loans of up to $5,000 for when you're in need of money.
- Interest Rate From: 48% p.a.
- Comparison Rate: 66.04% p.a.
- Interest Rate Type: Variable
- Application Fee: $400
- Minimum Loan Term: 1 year
- Maximum Loan Term: 2 year
- Minimum Loan Amount: $2,000
- Maximum Loan Amount: $5,000
High-cost short term credit is not a long-term financial solution and can be expensive if borrowed for a long period. You should always refer to your loan agreement for exact repayment amounts.
Check your options before you borrow:
- For information on managing debt and further advice, call the New Zealand Federation of Family Budgeting Services on 0508 283 438 (freephone).
- Talk to your utility providers to see if you can agree on a payment plan.
- If you receive benefits from the government, ask about an advance from Work and Income. Phone: 0800 559 009.
The Commerce Commission New Zealand website explains how loans work and what to be aware of when borrowing from a lender.
Loans you may qualify for with bad credit
Can I obtain a payday loan with bad credit?
Payday lenders operate with different lending criteria to other institutions, such as major banks, which is the main reason they can offer loans to borrowers with negative marks on their credit file. Payday lenders consider your employment situation; how much you earn; whether you receive Work and Income payments and will look at the last 90 days of your bank statements to see if you’re eligible for a loan.
If your credit rating is dreadful, but you still have a regular income, a no credit check payday loan may be something to consider.
Am I eligible for a loan?
The requirements vary from each institution, but you usually need to meet the following criteria:
- A New Zealand citizen or permanent resident
- Over 18 years of age
- Receive a regular income, either through employment; Work and Income benefits or a private source, eg investments.
These criteria are an example of the standard eligibility requirements. You should check you meet the eligibility criteria set by the lender before you apply.
What features come with a bad credit payday loan?
The features that come with a short-term bad credit loan include the following:
- Convenient online application. Lenders allow you to apply online and the application process only takes a few minutes. You should hear a response immediately.
- Receive your money quickly. It’s standard for payday lenders to offer a one-day turnaround. If you submit your loan by the cut-off time, usually 4:00pm, your funds will arrive the next business day.
- Apply for as much as you need. These lenders offer various loan amounts, usually between $100 and $2,000. You may also find loans up to $10,000.
- Easy repayments. Lenders usually direct debit your repayment from your account automatically, so you don’t have to worry about missing a payment.
- Repay the loan early. You can usually repay the loan early without penalty. However, make sure you check the product disclosure statement (PDA) to see if this applies to your loan.
How to find the right payday lender for you
With so many payday loan providers appearing online, it may be difficult to know where to look first. It’s essential you find the right loan for you, so finder has found specific aspects of payday loans for you to consider before making a final decision.
Research lenders thoroughly.
Lenders will have the right to access your bank account details, so you need to be sure they are trustworthy and have a good reputation. Look at each website carefully and make sure it is easy to find the provider’s policies and loan terms. Some online lenders have a “live chat” tool, where you can discuss your needs and ask questions. It is also advisable to read reviews and testimonials from other customers.
Find out what the fees and interest rates are.
High fees and interest rates are the price you pay for efficiency and fast access to funds. Make sure you check these out and can afford the repayments.
What is the turnaround time for receiving your funds?
How fast do you need the money? Do you need it within an hour, or do you have a day or two to spare? Most lenders transfer the money directly into your account, within a time frame of 1 to 24 hours (on business days).
Can you get loan extensions or redraws?
Some loan companies may extend the term of your loan for up to 90 days. Of course, the provider will charge extra fees for this. Before you sign anything, always ask what happens if you cannot pay back the loan on time. Make sure to ask about any hidden or extra fees you might incur within the time you have to pay back the loan. You should have a reasonably good idea of how quickly you can pay off the loan, so try to avoid an extension if you can.
Loan for car repairs
Harry was driving when he had a small car crash, colliding with a tree. The bonnet of his car was pushed out of shape and the engine needed repairs. The total cost was close to $1,000, but he didn’t have the money or the credit history to access a loan. He needed the car repaired quickly, so looked at his short-term loan options. Harry was employed full-time in government work and was approved for a small loan, which he needs to repay over his next two paydays. The loan was in his account on the same day and he quickly had the car repaired.
The good and the not so good of payday loans
- Quick and easy application process.
Being able to lodge your application online removes the hassle of paperwork and provides a convenient, simple solution to unexpected expenses.
- Quick turnaround time.
Many lenders will deposit the funds into your bank account within 24 hours.
- Bad credit history.
Most lenders focus on your current financial status, which is ideal for anyone with a low credit rating.
- Many brands from which to choose.
There are many reputable online lenders from who you can choose. It’s important that you find the right company to suit your needs.
- Higher fees.
The fees are higher than for most other personal loans and may end up costing you more than you can afford.
- Payday loans are not a long-term solution.
If you are having financial difficulty, a payday loan is just a “quick-fix” short-term solution. It Is not going to help minimise your overall long-term debt.
- Dishonest lenders.
Unfortunately, fraudulent lenders operate online. It can be hard to detect dodgy lenders since you cannot walk into their store. There is only one way to avoid taking out a loan with a dishonest lender – do some research. Make sure the lender you choose is well-known and reputable.
How can I apply for a payday loan without being ripped off?
With so many lenders out there, applying for a bad credit payday loan can be tricky. Use the comparison table above to guide your decision-making process. Follow the “More Info” and “Go to Site” links to the lenders’ websites for further information on what each can offer you. Make sure you assess your financial situation first, to ensure you can meet the repayments.