Personal Loans Immediately Poor Credit – Are They for You?

Category: Financial News

Richard asked me the following question:

“What are my options when I’ve got an urgent need for cash? Rest assured it’s for an emergency and that I can likely pay the loan back in two paychecks. Let’s just say I need to borrow now. Are payday loans a good option for me? Or are there other and better options?”

–Richard, 24, CA

The fact that you have a job and you’re even willing to pay the loan back in a month makes you a good candidate for payday loans. And although you didn’t tell us your credit health, you are still probably going to get a loan. For your question, let’s assume a baseline that you have past unpaid debts, you need cash now and you’re wondering if payday loans are still recommended for your emergency (if you don’t have debts, then you are even more suitable for payday loans).

What are these loans?

We call these cash advances personal loans immediately poor credit which are also popular in the UK and Canada. That’s what they are: they’re used for a personal emergency; you can get them immediately or even on the same day you apply; and even if you have bad credit you can get such a cash advance. Application is done online by submitting your personal information in an online loan portal. Based on that data, the site will churn out lenders with criteria and terms that you can meet.

Who are they for?

Personal loans immediately poor credit are best suited for people who can pay these loans back fast. Yes, payday loans can be for you because, one, you have a job; and, two, you have a fast exit plan.

Why do you need an exit plan fast?

Personal loans immediately poor credit have sky-high interest rates and stiff penalties because of the risk involved in lending money to people with bad credit. The longer you stay in that loan, the higher you’ll be paying for the interest and other fees that may be charged. The government may be cracking down on scrupulous lenders, but the industry is legal as pointed out in a Daily Mail news.

The high rates somewhat cushion the vulnerability that is inherent in lending out cash outright with little background check involved. In a way, you’re paying for the fast processing and ease of accessibility of payday loans via the high interest rates and other service fees. It’s a common industry practice for companies that work on volume business: customers pay for the margin of loss when some other customers fail to pay back.

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Should you get one?

You may be qualified to get personal loans immediately poor credit, but should you get one? Albeit we recommend the use of these loans for emergencies only, you have to be honest how urgent the emergency is. CNN reports that about 12 million Americans borrow these loans every year; but many of them are not used properly. This action leads to debt traps for many of us, the double-whammy of paying debts with more debts. Ask yourself if you can live another month without paying for that emergency. If yes, you’re better off waiting for your cash than borrowing one now. Personal loans immediately poor credit are costly. Ironically, those with less money are the ones getting these loans more often.

The Costs

The immediate cost is the high interest rate once you get your personal loan. The interest is often deducted at once from the principal, so you may be getting an amount less than what’s specified in your loan. Lenders may also charge a service fee or processing fee. Watch out for scrupulous lenders who charge service fees per payment; that is, the longer you extend your full payment, the more you’ll be paying for these service fees.

But perhaps the most expensive cost is when you default on the loan. The penalties can make your $1,000 loan jump to $10,000 in a few months. You may be charged a principal penalty fee, a processing penalty fee, and all other fees that the lender can think of.


Even if personal loans immediately poor credit are for you, ask yourself—do I really need it? The costs in mind and the risks involved, plan for an exit strategy before plunging into the loan.

By Jenny Chang

Senior writer at FinancesOnline who writes about a wide range of SaaS and B2B products, including trends and issues on e-commerce, accounting and customer service software. She’s also covered a wide range of topics in business, science, and technology for websites in the U.S., Australia and Singapore, keeping tabs on edge tech like 3D printed health monitoring tattoos and SpaceX’s exploration plans.

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