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Bad Credit Payday Loans

The thought of bad credit payday loans can worry the best of us. If you have bad credit it can seem impossible that you would even be considered for a payday loan, but here at Bonsai Finance we disagree. Whatever bad credit you have, whether that is a County Court Judgement (CCJ) against you, one or more defaults on repayments or if you have been declared bankrupt, we can find the right sort of payday loan for you.

What Are Payday Loans?

Bad Credit Payday LoansThe beauty of a payday loan is that you borrow a small amount of money for a small amount of time. It is just a way of paying bills or unexpected expenses if they crop up just before your salary is paid into your account, and they are usually arranged for a matter of days rather than years like a traditional loan. The interest is calculated daily because you will be paying back the total in a shorter time span than normal, but as long as you pay them off when required, a payday loan can be just as reasonable as other more traditional alternatives. The other bonus is that they can actually have a positive effect on your credit score as long as you do pay the loan back on time.

How to Get Payday Loans for Very Bad Credit

Payday loans are everything a normal loan isn’t. They are generally for a smaller sum of money for a shorter amount of time and they can be arranged far more quickly than traditional loans. What makes them even better is the fact that they are usually decided upon because of a person’s salary. This makes payday loans for very bad credit not only possible but ideal as often credit history won’t even come into play.

Guaranteed Payday Loans for Bad Credit

You many think it is an impossibility to get a guaranteed payday loan for bad credit, but when you realise that a credit check is rarely necessary it all becomes clear. Payday loans will only be given to those people who can prove their salary and as long as you can do that, usually by providing your bank account details, then it doesn’t matter what your credit history is. If we can be sure that you can afford the amount of the loan and the repayments, then we can find you lenders that have competitive and affordable rates.

Payday Loans for Poor Credit

It doesn’t matter what you want the loan for or what the state of your credit history is, if you are looking for payday loans for poor credit then we are here for you. Poor credit makes no difference at all to the rates and fees of the loans that we can find for you. All we ask is that you can prove your salary and once we have that sorted, we can search out lenders with competitive interest charges that are available to help you.

How We Can Help You Find Bad Credit Payday Loans

We have access to many respectable and dependable lenders that will be only too happy to provide you with a payday loan irrespective of your bad credit history. The online application process is very simple, and as long as you are 18 and have a UK bank account that your salary is currently paid into, there is very little else for you to worry about. As long as we are sure you have the ability to repay the loan we will not need to check your credit history. All you need to do is choose one of the excellent loan options that we will provide for you, so contact us today to see how we can help.

The Benefits of Finding payday loans for Poor Credit with Our Help

Whenever you apply for payday loans for poor credit lenders have to check your credit rating by law in the UK. Some lenders will make a soft credit check while others may look more deeply into your credit rating. This does not always stop you from being approved for credit, as lenders will consider your current circumstances too. A credit check can affect your credit file as it is noted on the file.

If you apply for a loan and are turned down, it will be reflected on your credit file and if you continue applying and are turned down, you enter into a vicious circle as each application is noted. This will not be in your favour. However, if you apply for a payday loan with our help, you can make one single application. The benefits are:

  • We can search to match you up with a lender from our panel of lenders;
  • You make one single application to gain access to a wide range of lenders;
  • If one lender turns down the application we move onto the next lender to try to match you;
  • You are not required to make several applications, which affect your credit file.

Why Payday Loans Are Easy To Apply For Even With Poor Credit

Payday loans are easier to obtain than other loans for people with a poor credit rating.

This is due to the fact that generally you will borrow just a small cash amount, in the region of £100 to £500 and repay it back within a period of three months. Loans of this type may be spread out for one, two or three paydays, depending on the lender, the amount borrowed and your circumstances.

The quicker you repay the payday loan the less interest will accumulate on it. With personal loans, you usually borrow up to £5,000 and the repayments are spread out for up to 36 months. Lenders might think you are too big a risk for a personal loan if you want to borrow thousands of pounds and spread out the repayments that long if you have a bad credit rating.

Payday loans are a way of gaining the trust of lenders if you only need to get your hands on a relatively small sum of money fast and you know you can repay the loan quickly.

Why You Might Need A Payday Loan

There are many instances where a payday loan might come in handy. Some of the common reasons people apply for a loan of this nature include:

  • You run over something in the road in your car and you have a flat and no spare and need to be towed to a garage to fix it;
  • Your freezer or washing machine breaks down and you have to call someone in to repair it;
  • You have an appliance breakdown that cannot be fixed and you want to purchase a new appliance;
  • You forgot you had not paid the utility bill and now the final demand has come through the door and you do not have the money to pay it;
  • You have to pay the remaining money for your child’s school trip and payday is some way off.

In any of these instances, you would be able to apply for a payday loan and if approved get your hands on the money needed fast, often the same day. Of course, payday loans only work as they are intended to work if you know that you can repay the loan on the agreed terms.

Payday loans are not suitable if you have to constantly rely on them. For instance, you take out a payday loan to pay for something and repay it back on your next payday. You are then left short of cash and have to rely on another payday loan to make up the money lost and find you have to continue the circle. Payday loans are one of the most expensive options for borrowing if you do not use them as they are intended to be used, as a one-off in an emergency.

Steps To Take To Apply For Payday Loans For Poor Credit With Us

Bonsai Finance does not directly offer financial products. Instead, we work to match those looking for loans with a panel of lenders. All of the lenders we work with offer rates that are competitive along with offering numerous loan options. The whole application process is as easy as possible and while the lender may check your credit file, they consider affordability in the present.

To apply for your loan with our help follow the steps below:

  • Choose how much you want to borrow;
  • Choose how long you want to repay the loan over;
  • Fill in your personal details including name, address, birthday, income and outgoings along with your bank account details;
  • We search with the lenders we work with to match you up to a lender;
  • You look over the details of the loan, including APR, repayment dates and any terms and conditions;
  • You sign for the loan;
  • The money is paid into your bank account and you can spend it as you wish;
  • You repay the loan.

Things to Consider When Looking for Payday Loans for Bad Credit No Guarantor

While it can be very tempting to rush into applying for a small amount of cash, payday loans for bad credit no guarantor should not be taken lightly, and there are many things to consider.

Four things that really need consideration are:

  • Doing your homework to make sure you can afford the loan;
  • Do you need a loan or can you manage without;
  • The amount of interest on the loan;
  • Avoiding spiralling debt and the payday trap.

Are You Sure You Can Afford the Loan?

One of the first things you might want to do before rushing into applying for a loan and getting into debt is to take a step back and ask yourself if you can really afford the loan.

Bear in mind that when your payday or paydays come around the lender is going to take back the agreed amount of money, which includes interest to date, which is going to leave you short of that amount.

This means you should work out your money carefully to ensure that when the lender takes their share you still have adequate funds left over to cover your living expenses and anything else that might crop up.

Do You Really Need A Loan?

Another question to ask is whether you really need a loan. In most cases, it will be evident that yes you do. For instance, if your vehicle has broken down or you have a large bill that needs paying before payday.

However, in some cases, you might consider a payday loan but could manage without. For instance, think twice about borrowing just to purchase new clothes, have a night out or book a holiday, as these are not things you really need.

Also, do not be tempted to take out a payday loan to pay off another loan. This is not how the loans are designed to be used and you could end up in serious financial difficulties by relying on payday loans to pay off other loans.

Unless something crops up that is essential you might want to refrain from taking out a loan.

The Interest Rate

The interest rate on payday loans for bad credit no guarantor can be very confusing. Lenders will typically show the interest rate as APR and in the case of payday loans, the rate is extremely high when compared to personal loans.

A personal loan for someone with good credit may be around 29%. However, the interest rate on payday loans is often in the thousands of percent.

One thing to bear in mind is the fact that you will not be repaying the payday loan over years. You are only going to borrow a small sum amount of money, plus you will pay it back quickly. Therefore, the APR is not really applicable.

The lender will let you know at the time of borrowing how much interest is going to accumulate on the loan. This means you should not worry too much about the APR, but of course, you still have to make sure the loan is affordable.

Avoid the Payday Trap

It can be easy to fall victim to what has been termed the Payday loan trap. Some lenders out there might try to tempt you to roll over the loan or extend the loan. This is not something that applies to the lenders that we work with but there are lenders out there who might.

When talking about the payday loan trap we mean that you can be cajoled into spreading the loan out longer, which means you pay more in interest.

Also, bear in mind that late fees or other fees might be added onto the loan if you were to get into financial difficulties and be unable to pay the loan off by the agreed dates.

Do not be tempted into continually rolling a loan over, as it can become a very expensive way of borrowing.

If you do find yourself unable to repay as agreed contact the lender as soon as possible or seek financial advice from the Money Advice Service or your local Citizens Advice centre.

Payday loans for bad credit no guarantor can be a good thing but only after giving them a great deal of thought.

In Conclusion

If you need to borrow just a small sum of money and you know you can repay it back quickly, a payday loan may be the answer to your financial problems. A payday loan should be considered a loan for emergencies only, and should not be relied on constantly.

There has been some bad press in the past regarding payday loans and how they have large APR but bear in mind that you will be paying the loan back over one to three months, so you will not be paying interest over the year. Payday loans for poor credit have made great strides since they first arrived on the market and they are now regulated to ensure that companies and lenders do not overcharge on interest. See how much you could borrow today and money could be paid into the bank within hours.