Payday loans are among the most popular types of loans on the market today and they are popular with people who have a less than perfect credit history. There is a misconception about these types of loans among those with poor credit and that is that no credit check is required. Anyone offering payday loans no credit check no guarantor is not being upfront. All ethical UK lenders perform a credit check; there is no getting away from this. However, it is true that payday loans do not need a guarantor.
Myths Surrounding Payday Loans No Credit Check No Guarantor
If you do a search for a loan yourself you will find some lenders promise the earth to those looking for payday loans. However, not all they offer is true.
Below you can find three common myths surrounding these types of loans.
The Lender Does Not Check Your Credit History
Wrong. All ethical lenders in the UK need to make a check of your credit history when determining whether to offer you a loan.
Be wary of any lender that does not check your credit rating as they may be among the lenders that give payday lending a bad name.
Anyone offering loans that say instant approval are wrong. Again, all ethical lenders will want to check to make sure the loan is affordable to you. Therefore, they cannot guarantor instant approval before they know more about you. What lenders can do is provide an instant decision. This is something very different as it informs the borrower whether they are turned down or they might be approved.
Payday Lending Is Extremely Expensive
While it is true that payday loans are typically an expensive way of borrowing, the loans are not as bad as people make them out to be.
If the loan is entered into and repaid as the agreement, you will generally pay no more than £24 per every £100 borrowed over one month. For a loan that provides you with almost instantaneous cash at a time when you need it, this is not a bad equation.
Bear in mind that banks charge a lot more than this in fees if you go into an unauthorised overdraft for the same period.
What a Payday Loan Is
Payday loans are small loans with the loan being repaid in one to three months on the date you are paid. The amount of money generally offered with payday loans is between £100 and £500.
- The payday loan is classed as small term borrowing and as such, the lender does not look too deeply into your credit file, but they will check it;
- The payday loan is a loan that can be used for anything as the lender generally isn’t interested in why you need to borrow;
- People with poor credit ratings may find approval easier than with other loans;
- Interest is paid on daily basis over the term of the loan so the quicker you pay it back the less you will pay in interest;
- You do not require a guarantor to apply for a payday loan.
Why You Might Consider Payday Loans No Credit Check No Guarantor
A payday loans can be taken out for just about any reason, but the most popular reasons are when met with a financial outlay that simply wasn’t expected. Some of the most common reasons include:
- Finding out you have a final demand bill that has to be paid before your next payday and it is still some time away;
- Finding you have to replace a tire on the car due to a puncture and you have not budgeted for it;
- Coming home only to find the cooker has broken down and you don’t have the money to hand to pay for the repairs;
- Your bank tells you that you have gone into an unauthorised overdraft and the fees are going to add up to a tidy sum as payday is some time off;
- Your car breaks down and needs to be repaired but there is not enough money in the bank to cover the costs.
In any of the circumstances above, you could apply for a payday loan fast and get an instant decision. If you are approved for the loan the funds could be paid into your bank account within hours.
Of course, the above are just a few of the many situations where you might find yourself short of money until your next payday. You might have come across a financial situation that we have not mentioned above and benefit from applying for a payday loan.
How to Apply For A Payday Loan With Our Help
You can apply for a payday loan with our help and there are many benefits to doing so.
For instance, you only have to leave your details once for us to be able to try to match you with a loan from a panel of UK lenders. If you were to search on your own with the same number of lenders all of the credit searches would be noted on your credit file.
We don’t only save you from getting black marks on your credit file due to numerous applications, we can also save you time. Finding a loan with a bad credit rating is not the easiest of things to do. However, we work with lenders who consider all considerations. Even if your credit rating is less than perfect, the lenders may consider your application providing they think the loan is going to be affordable.
Tell Us How Much You Need to Borrow
The first step to applying for payday loans no credit check no guarantor with our help is to tell us the amount of money you want to borrow and how long you would like to take the loan over.
We will also ask for other details and to be eligible to apply for a loan you should:
- Have a regular amount of income each month paid;
- Be over 18;
- Have an address in the UK;
- Have a bank account in your name;
- Have a debit card;
- Be capable of setting up a direct debit for the loan repayments.
Lenders will need your bank account details to pay the funds from the loan into your account and your debit card details to take the loan repayments.
Bear in mind that lenders do have to make a check of your credit file, but the lenders that we work alongside will also take your current circumstances into consideration and your ability to be able to repay the loan.
Therefore, they will work out what disposable income you have left out of your income, this is the money left after paying your monthly bills and other outlays.
Once we have your details, we can search with our panel of lenders to try to match you with a lender. If we are successful, you can go to the lenders website and check out the loan in full to make sure that it is right for you.
Payday loans no credit check no guarantor are not offered in the UK by ethical lenders so be wary of anyone who promises you such a loan. We work with lenders who take all circumstances into consideration, even people with a poor credit rating. The panel of lenders we work with offer loans that have competitive rates and affordable loans. See how much you might be able to borrow and we can try to match you with a lender offering the most suitable loan for your needs.