People who are desperate for loans will believe in anything that anyone tells them and one thing people in this situation want desperately to believe is that a loan is guaranteed. However, you should not be fooled, as there is no such thing as guaranteed payday loans for bad credit in the UK.
Why Loans Cannot Be Guaranteed
You might make a search online and on the first search page is a list with headlines drawing you in that says, “Loans guaranteed”, “We can give you a guaranteed loan”. However, these are false promises. No ethical UK lender will give you such a guarantee.
Lenders Need to Make Sure the Loan is Affordable
One of the main reasons why lenders will not give you a guaranteed loan is that they do not know you. For all they know you could have the worst credit rating ever and your circumstances mean that the loan is not affordable to you. In this instance, you could never afford to repay the loan and so the lender would not get their money back. Lending in such circumstances is unethical.
You Have to be Eligible to get a Payday Loan
Another reason is that you might not even be eligible to take out a payday loan. There are eligibility requirements for any loan in the UK, so without checking to make sure that you meet the requirements the lender cannot guarantee the loan. The general eligibility requirements are:
- You have to be at least 18 years old;
- You need to have a UK address;
- You need to have a regular income coming in, from either work or some types of benefits;
- You should have a bank account in your name in the UK;
- The bank account should have a debit card attached to it;
- The bank account should be capable of having a direct debit set up.
Are There Such Things As Guaranteed Payday Loans for Bad Credit?
Payday loans are a special type of loan that is taken out for very little time. Due to only small sums of money being involved in the loan, lenders do not pay too much attention to your credit rating.
However, even with these types of loans there is still no guarantee that the lender will approve you. The lender will still want to make sure that you can afford to repay the loan and that you have enough disposable income left over.
As you are not applying to borrow a large sum of money, lenders are more lenient when approving payday loans for people with poor credit, still there is no guarantee that you will get this type of loan.
How Much Might You Borrow With a Payday Loan?
With payday loans, lenders usually offer in the region of £100 to £500. Many people who apply for these types of loans apply for them due to unexpected financial emergencies. These might be such as:
- Paying an unexpected bill that has come in and you don’t have enough money to pay it until your next payday comes around;
- To pay for emergency repairs to a vehicle or household appliance that you cannot manage without;
- To get yourself out of an unexpected overdraft and you want to avoid the high fees of the bank;
- To put the car through its MOT after you forgot to budget for it;
- Any other unexpected outlay that you had not planned for.
How Long Can I Take To Repay the Loan?
Payday loans are not long-term loans and it is important to ensure that you can repay the loan as otherwise it would be an expensive way to borrow. This is due to the interest being paid daily on the loans. If you were to have to keep delaying the repayment, you would incur fees and more interest, which could spiral out of control.
Repay the Loan between One and Three Months
In general, lenders offer payday loans for one month. Hence the name, a payday loan. You borrow enough money to tide you over to pay for the unexpected financial outlay and then when payday comes around you pay off the entire loan and any interest incurred to that date.
However, it may be possible to spread the loan out for up to three paydays. In this case, it would essentially become a three-month loan. When considering this, the loan is going to cost you three times more than had you paid it off in one lump sum on your first payday.
Repay via Direct Debit
When taking out a payday loan the lender will want to set up a payment method so they can take their repayment or repayments back on the dates you agreed. Bear in mind that on the agreed dates, you will be left short of money and you should ensure that you have enough money to cover yourself for the remainder of the month until payday comes around again.
If you find yourself unable to repay the loan you can cancel the direct debit instruction to stop the lender taking the repayment back, however, you must get in touch with the lender to let them know you are having difficulties.
Interest on Payday Loans
The interest on payday loans is shown as APR, which is the annual percentage rate. This means it is the amount of interest that would be charged if you took the loan out over the year.
Of course, you are not taking the payday loan out for a year. Which is a good job as the interest would be in the thousands of pounds. The loan is repaid within a period of three months maximum and the interest is added on daily.
However, when seeing an interest rate of what is often around 1,500% compared to the average credit card of 22.8%, it can shock you.
In the past payday loans took on a bad name, as often fees pushed up the amount of borrowing to over twice the original sum borrowed. Today times have changed as the Financial Conduct Authority has stepped in and the cost of loans is now capped.
Applying for a Payday Loan
One of the easiest ways to apply for a payday loan is to allow us to match you up with a lender.
We are not lenders ourselves; instead, we bridge a gap between those with a poor credit rating looking for loans and lenders willing to offer loans.
We Can Save You Time
There are many advantages to allowing us to look for a loan on your behalf with the biggest being we can save you a great deal of time.
By applying online for your loan you do not have to wait for paperwork to arrive at your door, for you to sign and send back, before the loan application can go through.
Search With Multiple Lenders
As we work with a large panel of UK lenders there is more chance of us finding you guaranteed payday loans for bad credit than if you made different searches yourself.
If one lender cannot offer you the loan you want, we can move onto the next lender and so on. This also means that you are not getting several loan applications noted on your credit file, all of which can go against you.
Check the Details of the Loan and Get Paid
If we match you with a lender, you can then check out the details of the loan and if you are happy to go ahead sign up the lender.
In the majority of cases, payday loans are paid out fast, often on the same day and many times within hours of you making your application. This can be a lifeline if you need to get hold of money fast to pay off an unexpected financial outlay that simply cannot wait until payday comes around.
We can search for loans on your behalf, which saves you time and we can search with multiple lenders from just one single loan application.
If we match you with a lender, the money might be paid into your account on the same day, often within hours.
The lenders we work with offer numerous loan options, affordable loans and some of the most competitive rates on interest out there.
Apply today and you could borrow between £100 and £500 and spread the cost of the loan out over one to three paydays.
While there is no such thing as guaranteed payday loans for bad credit, we do make applying and getting approval for a loan much easier thanks to working with a huge panel of lenders.