If you like to watch TV, you’ve probably seen adverts for payday loans. Payday loans may seem like an appealing option if need money quickly, but are they really the best option for you? If you need cash fast, and you have bad credit, here’s an essential guide to help you decide if you could benefit from bad credit payday loans.
What exactly is a payday loan?
A payday loan is a short-term financial arrangement, which involves borrowing a sum of money, and then repaying it shortly afterwards. The idea is that you borrow money from a lender, and then pay it back when you next get paid. In most cases, taking out a payday loan means borrowing a small amount of cash over a short period of time. This can be an excellent option for temporary cash-flow issues if you fall short just before your wages come in. If your car fails its MOT or the boiler breaks, for example, you may find yourself in a situation where you need cash before you get paid. With a payday loan, you can access the funds you need without taking out a long-term loan.
Bad credit payday loans
If you have bad credit, you may think that it would be impossible to get a payday loan, but you’d be wrong. Bad credit can make it more difficult to borrow money, but payday loans are very different to standard personal loans. Payday loans involve a short-term payback period and a small amount of money, and they are usually approved or rejected based on your salary. This means that your credit history plays a much less instrumental role than it would with a different type of loan. If you can prove that you have money coming in, and you’ll be able to pay back that loan within the specified window, there’s no reason why your application would be turned down.
To apply for a payday loan, you’ll be asked to fill in a form and provide evidence that you’ll be able to pay back your loan. This may mean giving your bank account details or showing previous wage slips, for example. Most lenders also stipulate that applicants are over 18 with a UK bank account.
Finding the best loan
If you wish to borrow money and then pay it back when you get paid, and you can prove that you’ll be able to meet the repayment deadline, Bonsai Finance can help you find a bad credit payday loan. All you have to do is enter your details, and you’ll be presented with a list of lenders. Check the information carefully, compare terms, and go for the best offer. The online process is very simple, and it takes a matter of minutes.
If you find yourself in a situation where you need cash days before your wages are due to be paid into your account, a payday loan may be a solution. If you have bad credit, you may assume that payday loans aren’t an option for you, but you might be pleasantly surprised. If you can prove that you have a salary, and you can repay the loan, bad credit may not necessarily stand in your way.