Sara Routhier, Managing Editor and Outreach Director, has professional experience as an educator, SEO specialist, and content marketer. She has over five years of experience in the insurance industry. As a researcher, data nerd, writer, and editor she strives to curate educational, enlightening articles that provide you with the must-know facts and best-kept secrets within the overwhelming world o...

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Joel Ohman is the CEO of a private equity-backed digital media company. He is a CERTIFIED FINANCIAL PLANNER™, author, angel investor, and serial entrepreneur who loves creating new things, whether books or businesses. He has also previously served as the founder and resident CFP® of a national insurance agency, Real Time Health Quotes. He also has an MBA from the University of South Florida. ...

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Reviewed by Joel Ohman
Founder, CFP®

UPDATED: Sep 18, 2012

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Bad credit payday loans are cash advances that are available to people with bad credit. There are very few requirements for this type of financing which makes them very accessible to borrowers of all types.

In order to borrow a bad credit payday loan an applicant must have a bank account. Lenders need a bank account in order to directly deposit money. Borrowers are able to take this money and use it for whatever needs they have.

Bad credit payday loan lenders used to require that a post-dated check remain with the lender in order to be deposited at a future date. This check would be deposited by the lender at the end of the loan’s term—usually two weeks later—in order to satisfy the debt requirement. Fortunately, online lending has made this requirement less common.

Online, borrowers are able to obtain financing without having to write a check. Simply giving bank account access to a lender is usually all that is required in order to obtain a bad credit payday loan.

Virtually no cash advance lenders check applicants’ credit scores or credit histories. Lenders are more than willing to lend to borrowers with bad credit, however it is important for borrowers to remember that high interest accompanies all payday loans.

Due to their high interest rates, borrowers must remember that they should have the money to pay back the loan and its interest by the time the loan’s lifetime is completed. If borrowers aren’t able to get enough money for the repayment of their loan, they may leave themselves vulnerable to roll-overs and costly penalties.

While borrowers with bad credit may have few options besides cash advance loans, it’s usually wise to exhaust all other avenues of financing before approaching a short-term lender. An option may be to seek funds from friends and family. Another option would be to sell a few valuable possessions which may bring in money. At the end of the day, borrowers must do what is best for them and make a wise financial decision.