While having a bad credit score can put limits on borrowing, it may be possible to obtain same day loans for bad credit if you know where to look. Things that can affect your credit rating, making it bad, include missing repayments on credit accounts you already hold, being in arrears on credit accounts, having too many credit accounts.
If any of the above apply to you, finding a loan can be more difficult than if you have a good credit rating after paying up accounts, paying on time and never having missed a repayment on past credit.
Same Day Loans To Meet Emergencies
Life can sometimes throw a curve ball your way and it typically does it at the worst time possible. Often financial issues arise when your next payday is some time away and you have no spare money left. In this case, a same day loan could come in very handy.
Many times same day loans come in handy for people who have been met with an unexpected payout. This could be to repair a household appliance or to fix a car that has broken down. However, these are not the only circumstances where people have had to turn to a same day loan when they found themselves short of cash.
Same Day Loans Can Be a Lifeline
Some people who rely on benefits to live on were thrown a curve ball when the government changed the benefits system they were receiving to Universal Credit. The change left many families having to wait for five weeks to receive payments into their bank account.
This left many without enough money to live on and in some regions; there was an increase in the number of people turning to food banks and payday loans. For these people, same day loans became a lifeline.
Same Day Loans Can Be Applied For Online
There are various options for same day loans, with many of them being suitable for people with a poor credit rating to apply for, if they need cash paid into their bank account within a day or so.
Same day loans are loans that can be applied for quick online, and which come with fast approval, with money paid into the bank quickly if approved. As the application is made online, you will know within minutes if you are approved.
The entire loan application is made online which means you do not need to wait for any paperwork to arrive at your home so you can sign it and send it back.
Making an Application for Same Day Loans for Bad Credit
There are two ways of applying for same day loans. The first way you can search yourself and try to find lenders who are willing to offer same day loans for people with bad credit. Secondly, you can put your loan application into our hands.
The issue with searching for loans yourself is that you may have to make several applications before a lender approves you. This means filling in your information repeatedly and having the searches recorded on your credit file. This takes time and having repeated searches on your credit file goes against you.
Applying for your loan with our help brings countless benefits. These include:
- The fact that you have to make only one loan application to be able to search with a panel of lenders;
- The panel of lenders we work with offer numerous loan options;
- The loan application is fast, it takes just minutes;
- The lenders we work with offer competitive rates even to those with a poor credit history;
- The lenders we work with take into account your current circumstances along with taking a look at your credit file;
- If approved you could have money paid into your account on the same day or next day.
What Is Needed To Apply For A Loan Online?
In order to be able to apply for a loan online, you do have to meet some criteria. This includes:
- Holding a UK bank account in your name;
- Having a debit card linked to the bank account;
- Being over 18;
- Living in the United Kingdom;
- You have a regular income, which could be from work or benefits.
Providing you meet the criteria above, you can apply for a same day loan with our panel of lenders and we will attempt to match you up with a lender from one single application. You will have to tell us some details about yourself and perhaps show proof of your income. Lenders will also want to know about your outgoings, so they can work out if the loan is going to be affordable.
Will I Have To Undergo A Credit Check?
In the UK, lenders have to take a look at your credit file before they approve a loan. Your credit file is what holds your credit rating, given to you by three credit reference agencies.
If you have a bad credit rating, you might believe this means you will not be given approval for a loan, but this is not always the case. The lenders we work with will check your rating, but at the same time, they also realise that your circumstances might have changed. With this in mind, our panel of lenders will also consider your current circumstances, including your ability to repay the loan based on what you have coming in each month and what you pay out.
What Happens Next?
Once you have filled in your personal information, we can search with our panel of lenders to try to match you up with a lender who can offer you the loan you want.
In order for us to do this, you tell us how much you want to borrow, and the length of time you want to repay the loan over. We have made this extremely easy, as all you have to do is move the sliders on the loan calculator. This will determine the type of loan you are going to need, with the main instant loans available for people with bad credit being the payday loan and the short-term loan. Other loans you might consider are the guarantor loan and personal loan. The latter may be very difficult to get approval for with a bad credit rating.
If one lender cannot help, we move on to another lender and so on until hopefully, we are able to match you up with a lender.
How Much Can I Borrow?
The amount you can borrow is going to depend on the lender, your credit rating and the amount of money you have coming in and going out each month.
If you find yourself in a sudden financial emergency and you only want to borrow a small sum of money to tide you over until next payday or to pay an unexpected bill, you might consider a payday loan.
Payday and Short-term Loans
A payday loan will usually allow you to borrow between £100 and £500 and due to the small sum involved; lenders are most likely to approve this type of loan than a loan for a large sum of money.
The payday loan is usually repaid within one to three months, with the payments being taken from your bank account by direct debit on the arranged day or dates. The amount of interest is based on a daily basis, rather than over the year as with other types of loan, so the quicker the loan is repaid the less interest you will pay.
When payday loans first arrived in the UK there were many unscrupulous lenders offering loans with extortionate fees and rates of interest. Thankfully, this has now been phased out and the FCA keeps an eye on lenders to ensure that the interest repayable is not too much.
A short-term loan is another consideration if you know you can repay the loan back quickly but you want to borrow more than what is generally offered with a payday loan.
With the short-term loan between £500 and £1,000 may be borrowed. The loan is usually repaid within a few months, up to 12 months.
Owing to the relatively small sums of money being borrowed, both of the loans may be easier to be approved for than if you go for a loan wanting to borrow thousands of pounds. They are also both loans where money is usually paid into the bank on the same day, making them excellent choices for anyone who needs to get hold of a small amount of money fast.
Guarantor Loans and Personal Loans
If you need to borrow more money than what the payday or short-term loan allows and need to spread the cost over longer you might want to consider a guarantor loan or personal loan. Both loans may allow you to borrow upwards of £1,000 to £5,000 and spread the cost of repayments out for up to 36 months.
Out of the two, the guarantor loan may be the easiest to get approval for if you have a bad credit rating.
The guarantor loan means you find someone close to you, a relative or good friend, who would be prepared to stand as guarantor. This means if you find you cannot repay the loan they would be willing to take over the repayments and pay off the loan.
A guarantor loan is good for anyone with a bad credit rating who wants to borrow but not so good in the respect that it can damage relationships and make people uneasy.
As with payday loans the FCA has clamped down on lenders and have issued a guide that lenders have to follow when offering this type of loan. This includes the fact that lenders take care that the loan is affordable before approving it. All lenders we work with follow this practice.
A personal loan is an unsecured loan that does not need a guarantor but if your credit rating is bad, this type of loan may be extremely difficult to get approval. The guarantor loan and personal loan can also be applied for online and you should be able to get money paid into your bank account in a quick space of time.
Same day loans for bad credit are accessible to people who have a less than perfect credit rating. Providing you know you can afford the loan, and that repaying it is not going to cause issues, same day loans can provide a helping hand by way of an influx of cash to get you through the unforeseen. All of the lenders we work with offer affordable loans with numerous loan options and competitive rates.