What Are Payday Loans for Bad Credit?
Payday loans are funds lent to people with an emergent need for money, especially in the short term. They are usually lent out against the borrower's next paycheck. Payday loans for bad credit in particular are payday loans designed for people with bad credit history.
Usually, people with a bad credit history have difficulties landing loans. This is so because they are considered a lending risk. Good credit on the other hand grants you access to lots of loan opportunities. Higher amounts too!
But that’s not to mean that you are totally cut off from every loan opportunity because your credit score is less than perfect. These days, there are payday loans for bad credit lenders whose loan offers are designed for people with bad credit in particular.
PaydayLoansUK saves you the stress of finding these lenders by matching you with one in less than three minutes after filling and submitting your application form.
Should I Apply for a Payday Loan When I Have Bad Credit?
Yes. You should apply for a payday loan when you have bad credit. Even though finding a payday loan for bad credit lender can be a little difficult, it’s still very possible.
The catch is that the interest rates attached to this kind of loan can be a little higher than usual. Lenders offset the risk they are taking on borrowers by charging high-interest rates.
Like every other loan, there are consequences for defaulting on a payday loan repayment. They include extra fees and charges. To keep the cost of the loan as low as possible, the borrower is advised to borrow only what they can afford to pay back within the loan term.
Borrow what you can afford, and you’re good to go. In fact, paying back on time can potentially improve your credit score by a few points.
Where Can I Apply for Payday Loans Bad Credit?
There are two main outlets to apply for payday loans for bad credit. They are:
You can get payday loans for bad credit from direct lenders. To do this, you would have to scour through the net and go through several lenders to find the one most suitable for you.
It is also important to note that all direct lenders are bound by financial regulations that mandate a thorough credit check on every prospective borrower. This means that you are in the system regardless of whether or not you get the loan. Applying with different lenders means multiple hard credit searches which can adversely affect your credit profile.
You can also apply for a loan with a reputable credit broker. With credit brokers, locating lenders is pretty easy. Their modus operandi is matching you with lenders whose offers are tailored to your loan needs. Moreso, with loan brokers like PaydayLoansUK, you are guaranteed only soft credit checks. These checks are done only for formality's sake; they neither reflect on your profile nor hurt your credit rating.
How Can PaydayLoansUK Help Me?
PaydayLoansUK provides brokerage services to people who need access to loans in thousands. We can help you secure up to £5000 by linking you with established payday loans for bad credit lenders. Here’s how to apply for one:
Enter all required personal and contact information on the application form. These details help us match you with lenders whose loan offers are tailored to suit your loan needs.
Submit the application form and we’ll match you with suitable lenders. These lenders review your application and approve you in less than three minutes. Afterwards, they provide you with a quote containing the approved loan amount, repayment term and conditions of the loan.
Compare offers from different lenders and go with the lender whose loan offers best suit you. Then, sign the quote.
You should expect to get paid within the hour or the next. Easy-peasy!
Can You Ensure Zero Impact on My Credit Files?
At PaydayLoansUK, you can be assured that applying for a payday loan for bad credit will not impact your credit score. Our lenders, unlike several others, run only soft credit searches.
Hard credit checks are checks done on your profile - and upon your authorization - via the three biggest credit reporting agencies - Equifax, Experian and TransUnion. Hard inquiries show up on your credit report and can make your credit score drop by a few points.
Soft credit checks, on the other hand, are not reported to credit reporting agencies. So, they show up on your credit report alone. They have no adverse effect on your credit score either.
While hard checks or pulls are done to see how much credit you’re juggling, and how you’ve handled your debts in the past, soft inquiries are done mostly for formality's sake.
What Are the Pros and Cons of Payday Loans for Bad Credit?
There are benefits and disadvantages of payday loans for bad credit. Knowing them all will help you capitalize on the good and know how to avoid the bad. They include:
Good for financial emergencies:
Payday loans for bad credit come in handy when you are in a financially crippling situation. It is even more important because numerous lenders refuse to lend you money because of your bad credit score.
Potentially improve credit score:
They give you a chance to get your credit score in order. These loans are good, especially when paid back on time. There is a record of you repaying your loan, leading to better credit scores and access to even better funds.
Higher interest rates:
Getting payday loans for bad credits has a higher interest than normal loans at the bank. So, while they serve as an easy way out, it comes as a cost to you.
Damaging when used for frivolities:
People with little to no financial discipline can see payday loans for bad credit as an easy cop-out. This would make them apply for these loans for reasons that are not emergencies. This is highly risky and discouraged as that can lead to financial ruin over time.
What is considered a poor credit history?
Credit history is the metric by which financial institutions assess the creditworthiness of borrowers. A poor credit history con like defaulted bills, lack of credit, and legal entanglements with someone with a poor credit history, are examples of scenarios that form a poor credit history. Also, a FICO credit score below 600 is considered a poor one.
How soon will I get the payday loans for bad credit?
You will get the payday loans for bad credit within an hour after your application process has been approved. The exact time differs and depends on the lender you have chosen. They, however, all maintain the hour mark.
Can I get the loans with no credit checks?
You can get the loans with no hard credit checks. This means that our processes leave no mark on your credit history. We, however run soft credit checks for formality’s sake, and in accordance with the regulations of the FCA.
What can payday loans for bad credit be used for?
They can be used for emergencies requiring urgent finances. This includes emergency health procedures, urgent car fixes, funeral costs, and expenses, etc. You use it for all situations that call for money that you lack at the time.
How much am I eligible to receive?
The maximum amount a client is eligible to receive is 5000 pounds. This can, however differ depending on each lender. Your financial situation is also a big determinant of how much you can lay claim to.
How can I improve my credit rating?
You can improve your credit rating by paying back loans at the stipulated time. You should also clear up existing bill payments and avoid defaulting henceforth. Getting a credit card also helps if you do not have one. This gives you a good credit history when used properly.