Have you come across a financial emergency and are in need of a small sum of money fast but your credit rating is poor and payday is a long time away? Payday loans for poor credit may be the solution you need and we can help you.
Even if your credit rating is not as good as you would like it to be, you might still be able to get a helping hand in the short term. Payday or quick loans as they are sometimes called are designed to provide people who have fallen short of money and something unexpected has come up with a way to manage until next payday.
Payday loans do come with some advantages and disadvantages, but then this applies to all types of loan. While the criteria surrounding payday loans are less strict than with other loans, which make them popular among people with poor credit ratings, there are some criteria you do need to meet to apply.
- You have to be at least 18 to apply for a loan;
- Live in the United Kingdom and provide a UK address;
- Have a regular amount of money coming in each month from work or benefits;
- Have an open bank account in your name with a debit card attached to it;
- The bank account must support the setting up of direct debits.
Providing you fit the criteria above there is nothing stopping you from applying for a payday loan in the UK, even with a bad credit rating.
The Advantages of Payday Loans
First, let us talk about the advantages of payday loans.
Borrow Between £100 and £500
The amount of money payday lenders typically offer is between £100 and £500. This is usually enough to cover emergency shortfalls of cash, which is how the loan is intended to be used. The loan is usually repaid on your next payday but can be taken out for up to three months. This means it is paid back very quickly and you are not left with debt hanging over your head for years.
Accessible to People with Poor Credit Ratings
Obviously one of the biggest advantages of a payday loan is that you can apply for it even if you have a bad credit rating and stand a good chance of being approved if the lender thinks you can repay the loan. This cannot be said about personal loans.
The reason payday loans are accessible to people with poor credit ratings is that you are not asking to borrow a large sum of money and repay it over several years. This means the risk to the lender is not as big as if you had applied to borrow thousands of pounds.
Payday Loans for Poor Credit Get You Out of a Financial Shortfall Fast
When faced with a financial shortfall in the case of an emergency it can be very stressful. You might need money to pay off a substantial final demand bill, need money in the bank to cover a direct debit you forgot about, to pay for emergency repairs or something similar.
While you know, you would have ample money to cover the emergency outlay on payday, this might be some time away and it is frustrating. A payday loan could bridge that gap and save you stress and even money in the end if the funds from the loan are to cover a bill or direct debit that would otherwise mean you have to pay late fees or bank fees.
Payday Loans Pay Out Cash Fast
Payday loans pay out money fast if you are approved. Funds from the loan might even be deposited to your bank within hours of the application. This allows you to put things right the same day.
The Application Is Easy With an Instant Decision
Applying for payday loans for poor credit is easy and fast and when you apply through us, it takes just minutes and you get an instant decision from a panel of lenders. This means you do not need to hang around waiting for a decision and you can search with multiple UK lenders from the one application as we try to match you up with a lender most suited to your circumstances.
Competitive Rates and Affordable Loans
We work alongside a panel of lenders who considers all circumstances when making a decision and who offer affordable loans with the most competitive rates.
The Loan is Only Short Term
With the payday loan, you are not tying yourself into long-term borrowing for many years and have the loan hanging over your head. When you take a large loan over many years, you are taking a risk, as you have no idea what might happen in the future. While you are in work now, is your situation going to remain the same five or six years down the road?
With the payday loan, the whole loan and interest are repaid within a month to three months.
The Disadvantages of Payday Loans
So what are the disadvantages to the payday loan?
Payday Loans Are Often Regarded As Expensive
Payday loans are often regarded as being an expensive way to borrow money. However, consider the fact that you might want to borrow money to pay off an unauthorised overdraft.
Depending on your bank, the charges could be up to seven times as much as the interest on a payday loan.
If you borrowed £100 for one month with a payday loan, you might pay around £24 in interest. If you go into an unauthorised overdraft with Santander, you will be charged £179 for one month, in fees.
This means that essentially payday loans are not the expensive way of borrowing they are portrayed to be.
Payday Loans Can Spiral Out of Control
There have been horror stories in the British press about payday loans spiralling out of control.
It is important to note that any loan can lead to financial difficulties, whether it is a payday loan or not. The FCA now regulates loans and as such exorbitant rates of interest and fees have been stopped, with regulations in place to help stop payday loans spiralling into huge sums.
We can help to match you up with a lender offering payday loans for poor credit with sums of money between £100 and £500. You can spread the loan over three months if required. Apply with us today to search for an affordable payday loan with competitive rates from a panel of lenders.