A weekend loan, also known as a weekend payday loan, is a type of short-term loan designed to provide borrowers with quick cash over the weekend or during non-business days. These online payday loans are typically offered by online lenders and direct lenders, making them accessible to individuals with bad credit or a bad credit score. The loan amounts for weekend payday loans are generally limited and are meant to cover unexpected expenses or financial emergencies until the borrower's next payday. The loan approval and instant funding process are usually quick, with many lenders offering same day loans or same day funding. However, it's essential to carefully review the loan terms, interest rates, and any additional fees in the loan agreement before borrowing money.

Features

1. Quick Access to Funds. Weekend loans provide borrowers with fast cash, often on the same day or within one business day, making them suitable for financial emergencies or unexpected expenses.

2. Online Application Process. Most weekend loans are online loans, allowing borrowers to submit loan applications from the comfort of their homes. The application process typically requires providing personal and financial information for approval.

3. Direct Deposit. Once approved, the loan amount is usually deposited directly into the borrower's bank account or bank checking account.

4. Credit History Considerations. Weekend loans are often accessible to individuals with bad credit scores or less-than-perfect credit history, as lenders may focus more on the borrower's steady income and ability to repay the loan.

Pros and Cons

How to Get a Weekend Loan?

1. Check Your Credit Score. Start by checking your credit score through your credit card issuer or other websites that offer free scores. Aim for a score of at least 610, though a score of 720 or higher will yield more favorable terms.

2. Improve Your Credit Score (if necessary). If your credit score is below the desired range or you want better loan terms, take steps to improve it. This may include paying down debt, lowering credit usage, and disputing any errors on your credit report.

3. Determine Loan Amount Needed. Calculate how much money you need to borrow. Remember, you'll receive the funds as a lump sum and will need to pay interest on the entire amount, so borrow only what you need.

4. Shop Around for Lenders. Research various lenders, including banks, credit unions, and online lenders, to find the best terms and interest rates for your situation. Many lenders offer prequalification, which allows you to see potential terms with just a soft credit inquiry, helping you shop around without impacting your credit score.

5. Gather Necessary Documents. Prepare documents commonly required for loan applications, such as proof of income (pay stubs or tax returns), identification (driver's license or passport), and bank statements.

6. Submit a Formal Application. Once you've chosen a lender, submit a formal application either online or in person. Be prepared to provide personal and financial information, including your income, employment history, and existing debt obligations.

7. Wait for the Lending Decision. After submitting your application, wait for the lender to review and make a decision. This process can take anywhere from a few hours to a few days, depending on the lender's procedures.

8. Review Loan Terms. If approved, carefully review the loan terms offered, including the interest rate, repayment term, and any fees. Ensure you understand all terms and conditions before accepting the loan offer.

9. Sign Loan Agreement. If you agree to the terms, sign the loan agreement provided by the lender. This document outlines the terms of the loan, including the repayment schedule and any other important details.

10. Receive Personal Loan Funds. After signing the loan agreement, the lender will disburse the loan funds to you. Depending on the lender, funds may be deposited directly into your bank account or provided via check.

Best places to borrow a loan with bad credit

Upgrade

Upgrade is a prominent online lender that offers personal loans to borrowers with bad credit. They provide loan amounts ranging from $1,000 to $50,000, making them suitable for various financial needs. The minimum credit score required by Upgrade is relatively low, typically around 580. This makes it accessible to individuals with a less-than-stellar credit history. One notable advantage of Upgrade is its flexible repayment terms, which can extend up to five years. This longer repayment period allows borrowers to manage their monthly payments more effectively. However, it's worth noting that Upgrade charges origination fees ranging from 2.9% to 8%. Additionally, while they do not have any prepayment penalties, borrowers should be aware of the interest rates, which can be relatively high for individuals with bad credit.

Upstart

Upstart is another online lender that specializes in providing loans to borrowers with bad credit. Their loan amounts range from $1,000 to $50,000, allowing borrowers to access the funds they need for various purposes. Upstart utilizes a unique underwriting model that takes into account factors beyond just credit scores, making it more inclusive for individuals with limited credit history or low credit scores. The minimum credit score required by Upstart is typically around 580. One of the significant advantages of Upstart is its soft credit check, which means that applying for a loan does not negatively impact your credit score. Repayment terms offered by Upstart range from three to five years, providing borrowers with flexibility. While they do charge origination fees of up to 8%, it's important to note that they don't impose any prepayment penalties. However, borrowers with bad credit should expect higher interest rates.

LendingPoint

LendingPoint is a bad credit lender that offers personal loans ranging from $2,000 to $36,500. They consider borrowers with credit scores as low as 585, making them accessible to individuals with bad credit. LendingPoint prides itself on providing fast funding, often disbursing funds within one business day. Their repayment terms typically range from two to four years, allowing borrowers to tailor their loan duration according to their needs. It's important to note that LendingPoint does charge origination fees that can be up to 6%. They also have a slightly higher interest rate compared to traditional lenders, which is to be expected when borrowing with bad credit. However, they do not impose any prepayment penalties, enabling borrowers to pay off their loans early if they desire.

Universal Credit

Universal Credit is an online lender that specializes in bad credit loans, offering loan amounts ranging from $500 to $15,000. Their minimum credit score requirement is relatively low, typically around 550, making them accessible to borrowers with poor credit. Universal Credit offers repayment terms ranging from six months to five years, allowing borrowers to choose a duration that aligns with their financial situation. While they charge origination fees, the amount may vary based on the borrower's creditworthiness. One notable advantage of Universal Credit is its willingness to consider applicants who have previously filed for bankruptcy. However, borrowers should be aware that the interest rates associated with bad credit loans from Universal Credit may be higher compared to traditional lenders.

OneMain Financial

OneMain Financial is a well-established lender that specializes in bad credit loans. They offer loan amounts ranging from $1,500 to $20,000, making them suitable for various financial needs. OneMain Financial requires a minimum credit score of 600, slightly higher than some of the other lenders in this category. However, they have a reputation for considering other factors beyond credit scores when evaluating loan applications. OneMain Financial provides repayment terms that range from two to five years, allowing borrowers to select a term that fits their budget. It's important to note that OneMain Financial charges origination fees, which can vary depending on your residence state. While they do not disclose their interest rates upfront, borrowers with bad credit should expect higher rates.

Avant

Avant is an online lender that specializes in offering personal loans to individuals with bad credit. They provide loan amounts ranging from $2,000 to $35,000, catering to various financial needs. Avant has a minimum credit score requirement of 580, making them accessible to borrowers with less-than-ideal credit histories. Repayment terms offered by Avant typically range from two to five years, giving borrowers flexibility in managing their monthly payments. While Avant charges origination fees up to 4.75%, they do not impose any prepayment penalties. It's important to note that Avant's interest rates can be relatively high for borrowers with bad credit. However, they provide a transparent prequalification process that allows borrowers to check their potential loan offers without affecting their credit scores.

Requirements and Conditions

Requirements

1. Age Requirement. Applicants for weekend loans must be at least 18 years old, as this is the legal age for entering into a loan agreement in most jurisdictions.

2. Active Checking Account. Lenders typically require borrowers to have an active bank checking account, as this is where the loan amount will be deposited and where the repayments will be withdrawn.

3. Proof of Income. To ensure that the borrower has the ability to repay the loan, lenders usually ask for proof of income. This can be in the form of pay stubs, bank statements, or a letter from an employer.

4. Valid Identification. Borrowers must provide valid identification, such as a driver's license, passport, or state-issued ID, to verify their identity and prove that they are of legal age to enter into a loan agreement.

Conditions

1. Loan Amounts. Weekend loans, such as payday loans, typically range in size from $100 to $1,000. The specific loan amount that a borrower can receive will depend on the lender, the borrower's income and credit profile, and the state's legal maximums.

2. Loan Term. The average loan term for weekend loans is about two weeks, which is typically until the borrower's next payday. This shorter repayment period can be both an advantage and a disadvantage, as it may help avoid further debt but can also strain the borrower's finances if they're not prepared.

3. Interest Rates and Fees. Weekend loans generally have higher annual percentage rates (APRs) and additional fees compared to other types of loans. The average APR for payday loans is 400% or more. It's essential to compare interest rates and understand the loan contract's terms before borrowing.

Ways to Get the Money

1. Direct Deposit. Many lenders offer the option for borrowers to have the loan funds deposited directly into their bank account. This method is convenient and allows borrowers quick access to the funds once the loan is approved.

2. Check. Some lenders may provide borrowers with a physical check for the loan amount. Borrowers can then deposit the check into their bank account or cash it at their financial institution.

3. Wire Transfer. In some cases, lenders may offer wire transfers as a method of disbursing loan funds. Borrowers provide their bank account information, and the lender transfers the funds electronically.

4. Payment to Creditors. For debt consolidation loans, lenders may offer to directly pay off the borrower's existing creditors or accounts. This streamlines the debt consolidation process and ensures that the loan funds are used for their intended purpose.

5. Payment to Service Providers. In cases where the personal loan is used for specific expenses, such as home renovations or medical bills, lenders may offer to directly pay the service providers or vendors on behalf of the borrower. This eliminates the need for the borrower to handle the funds themselves.

Things to Pay Attention To

1. Loan Amount. Determine how much money you need to borrow and ensure the loan amount offered by the lender meets your needs. Avoid borrowing more than necessary to prevent overextending your finances.

2. Credit Score Requirements. Understand the minimum credit score requirements of the lender and ensure your credit score meets or exceeds this threshold. Higher credit scores typically result in better loan terms and lower interest rates.

3. Prepayment Options. Check if the lender allows early repayment of the loan without penalties. Having the flexibility to make extra payments or pay off the loan ahead of schedule can save you money on interest charges.

4. Customer Service. Evaluate the lender's customer service reputation and responsiveness. Choose a lender that provides excellent customer support and is readily available to address any questions or concerns.

5. Loan Purpose Restrictions. Some lenders may impose restrictions on how you can use the loan funds. Ensure the loan can be used for your intended purpose, whether it's to consolidate debt or make some home improvements.

6. Financial Stability of the Lender. Research the financial stability and reputation of the lender before committing to a loan agreement. Choose a reputable lender with a track record of reliability and transparency.

7. Read the Fine Print. Carefully read the loan agreement and all associated documents before signing. Pay attention to the terms and conditions, including any clauses or provisions that may impact your rights and obligations as a borrower.

How to Repay the Loan?

1. Review Loan Agreement. Carefully review the loan agreement provided by the lender. Pay attention to the repayment terms, including the monthly payment amount, due date, interest rate, and any fees or penalties.

2. Set Up Automatic Payments (if available). Many lenders offer the option to set up automatic payments from your bank account. This ensures that your payments are made on time each month, reducing the risk of late fees and helping you stay on track with repayment.

3. Make Monthly Payments. On or before the due date each month, make your loan payment as specified in the loan agreement. You can typically make payments online, through the lender's website or mobile app, by mail, or by phone.

4. Consider Making Extra Payments. If possible, consider making extra payments towards your loan principal to pay off the loan faster and save on interest charges. Check with your lender to ensure there are no prepayment penalties.

5. Monitor Your Account. Regularly monitor your bank account to ensure that your loan payments are processed correctly and that there are no issues with insufficient funds or other payment issues.

6. Contact Lender for Assistance (if needed). If you encounter financial difficulties or anticipate missing a payment, contact your lender as soon as possible to discuss options. Some lenders offer hardship programs or may be willing to work out a modified payment plan.

7. Keep Records. Keep records of all loan-related documents, including the loan agreement, payment receipts, and correspondence with the lender. This documentation can be helpful for reference and dispute resolution if needed.

Editorial Opinion

Important

How to Choose a Lender

1. Make sure to confirm whether the lender is licensed to operate in your state. You can verify this information with your state regulator or attorney general.

2. Check if the lender is a member of a reputable association, such as the Community Financial Services Association of America. Membership in such organizations may provide an extra level of reliability.

3. Carefully review all the terms and conditions of your payday loan contract.

4. Thoroughly examine the interest rates on payday loans and ensure that your contract includes a detailed breakdown of the total cost of the loan.

5. Take advantage of your right of rescission. Usually, you can rescind the loan within three days after signing the agreement. Alternatively, there is typically a "cooling-off" period, which allows you several days to thoroughly review the contract before making an informed decision to enter into a consumer loan agreement based on the terms specified by the lender.

6. Choosing a payday lender is a significant decision that demands careful consideration and a good understanding of how such organizations operate.

Additional Resources

• What Credit Score Do You Need for a Personal Loan?
• How to Get a Personal Loan in 7 Steps
• Personal Loan Pre-Approval
• How to Apply for a Personal Loan
• Personal Loan vs Personal Line of Credit