Having bad credit and needing a loan can be a huge headache, but thankfully, it is possible to obtain a loan even with a bad credit rating. While there are many types of loans you might be eligible to apply for one of the most popular types are payday loans for bad credit no guarantor.
Why Avoid Guarantor loans?
There are numerous reasons why you might want to steer clear of applying for a guarantor loan. Of course, many people do go for this option when they have a poor credit rating, as it is generally easier to find approval for such a loan. Here are some of the downsides to this type of loan and why many people avoid them.
- You need to be able to speak out about your financial problems and admit that you cannot a loan on your own;
- Your guarantor has to be someone you know well, a close friend or family member;
- Guarantor loans can cause tension in relationships;
- There are other options for borrowing small sums of money, including the payday loan and short-term loan.
What Is A Payday Loan?
A payday loan doesn’t require you to ask someone to stand as a guarantor as the amount of money you are borrowing is small in comparison to other loans.
Most payday lenders will offer sums of money in the region of between £100 and £500. While this is not a huge sum, it is often more than enough to cover a financial emergency. Payday loans are now regulated by the FCA and are popular, with people applying for payday loans to cover an unexpected outlay and your payday is some time away. For instance:
- You have gone into unauthorised overdraft and want to avoid the hefty bank fees;
- Your car has broken down and you need to borrow money to pay for repairs and get it back on the road;
- A final demand bill has just arrived and needs paying before your next payday;
- Your washing machine or cooker has broken down and you cannot manage without it until the next payday.
Will Lenders Check My Credit Rating?
One thing that people with bad credit worry about is whether the lender will check their credit rating. Unfortunately, all lenders in the UK have to take a look at your credit file before offering a loan.
With the payday loan, you are not asking to borrow a huge sum of money so the lender is not too worried about your credit rating, but they will check it. What is more important to lenders is your ability to be able to repay the loan. The lender will check your income and your outgoings to determine how much money you have left. If the lender thinks you have enough disposable income, they may offer you the loan.
Criteria for Payday Loans for Bad Credit No Guarantor
You do have to meet some eligibility criteria when applying for payday loans, as you do with other loans. Lenders ask that you:
- Are over 18 years old;
- Live in the United Kingdom;
- Have a regular monthly income;
- Hold a bank account in your name;
- Have a debit card attached to that bank account.
If you meet the above criteria, there is nothing to stop you from applying for a payday loan with our help.
Give us your details and the amount you wish to borrow and how long you want to take the loan over and we can search with a panel of lenders from the UK. The lenders we work with offer payday loans for bad credit no guarantor that come with the most competitive rates possible. Lenders will consider all circumstances and you get an instant decision. Apply today and you could get funds from the loan paid into your bank account on the same day.