Headlines thrown up using search engines offering guaranteed payday loans for bad credit are simply not true. There is no ethical UK lender who will guarantee you a loan before they have had chance to learn a bit more about you and your current circumstances.
All lenders in the UK, including the ones we work with, will want to make a soft credit check at least, even if the loan is only small. Payday loans are a small loan but even still lenders cannot guarantee them as they do have to make sure that those applying for loans are eligible to begin with.
With most lenders the criteria is simple. If you want to take out a loan, however small, you will at least need to:
- Be at least 18;
- Live in the UK;
- Have a regular monthly income, although not necessarily employed. Some lenders may offer loans to people on certain types of benefits providing the benefit is paid into the bank account on a regular basis.
Other criteria lenders may stipulate is that you have a bank account with a debit card and a direct debit can be set up on the bank account. This relates to the fact that if you are approved the funding from the loan is paid directly into your bank and the repayments paid back by direct debit.
Why Lenders Check Your Credit File
Lenders have to check your credit rating to safeguard themselves. When a deep search is performed lenders look into all aspects of your credit file including whether you have CCJs, how many credit accounts you have open, how much of your available credit you have spent, missed repayments, late repayments and more.
If you are applying for a payday loan and only a small sum of money is involved, lenders do not look into your credit rating too deeply. Lenders we work with will consider current circumstances to find out if the loan you have asked for is affordable. They do this by checking your income and outgoings. They will take this into account more than what happened in the past if you only want to borrow a small sum of money.
It would be unethical for them to offer you a loan if that loan was not going to be affordable and you stood no chance of repaying it.
Importance of Filling in Correct Details and Being Truthful
It can be tempting to bend the truth a little when applying for a loan with a poor credit rating. However, we cannot stress enough the importance of filling in the correct details on your loan application and being truthful.
This could make a huge difference to whether the lender approves your application or not. You might state you have a higher monthly income than the accurate amount and be approved to the next stage of the application. However, if the lender wants proof of your income, you are going to come unstuck. If you cannot offer proof, the application will be declined. This is a waste of both your time and the lenders and does not get you anywhere. Worse still, you have proved to the lender that you are not trustworthy.
If you are honest and the lender believes you will be able to afford to repay the loan, there is no reason why they will not approve you for a small loan, but there is no guarantee.
Apply for Guaranteed Payday Loans for Bad Credit with Ethical Lenders
It can be too easy to fall prey to unscrupulous lenders offering guaranteed payday loans. More often than not, individuals with no background, or very little background, in finance, set up companies such as these.
In 2014, one such company came under fire when they began offering loans and even though the loans were never given out to those who applied, the repayments were taken back from their bank accounts. This is just one example of how easy it can be to be ripped off when you are desperate to get your hands on a small amount of cash to tide you over and the lender tells you they guarantee you a loan.
If you are looking for guaranteed payday loans for bad credit online, it is important to choose a company who has a background in finance and who works with ethical UK lenders, such as us, Bonsai Finance.
While we cannot give you a guarantee that the lenders we work with will give you a loan. We can guarantee that the lenders on our panel are ethical lenders from the UK who offer competitive rates and affordable loans.
How a Payday Loan Works
Payday loans have become increasingly popular as a stopgap when people are faced with a financial shortfall and their payday is still a long way off. The loans offer small amounts of money, in the region of £100 and £500.
Loans such as this usually provide enough cash for you to get out of financial difficulty in the short term, if say, an unexpected bill comes up or you have to pay out for repairs to your car or a household appliance.
Payday loans are not long-term loans and they should not be relied on continually. However, as a one off in an emergency, payday loans can work.
Payday loans can be paid back in full when your next payday comes around or you might choose to spread out the repayments for up to three paydays. If possible, take the loan over the shortest term, as this will serve to keep the cost of borrowing down to the minimum.
How to Apply for a Payday Loan
To apply for a payday loan you just need to choose how much you need to borrow and when you wish to repay it. This could be any amount from £100 to £5,000 repaid back over one month to 36 months.
Give us the details of your income and outgoings along with age, address and bank account details and we can search to attempt to match you up with a lender. We work with a panel of lenders so if you are turned down by one, we can move onto another. This increases your chances of being approved, although there is no guarantee.
Be wary of anyone offering you guaranteed payday loans for bad credit. No ethical lender can offer this and it would be wrong of them to do so. The lenders we work alongside offer payday loans with some of the most competitive rates along with loans that are affordable to you.