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Instant Payday Loans Bad Credit
19 Jul 2018

Why People Love to Hate Instant Payday Loans Bad Credit

An instant payday loan for bad credit is a loan that can only be taken out over a small period of time, usually days or weeks rather than the more normal years. They are designed to help people who are low on cash just before payday, and can be used to fund emergencies until the wages arrive. In order to make sure it is easy for people to pay them back they are usually for small amounts, for example less than £1000, and if you are approved for the loan sometimes you can even access the cash the same day.

People have mixed feelings about instant payday loans for bad credit but with more than a million people taking them out each year, they are clearly here to stay.

Why Do Some People Hate the Instant Payday Loan Bad Credit?

They Are Assumed to Be Expensive

Some people see them as extremely expensive, and worry that people who can’t manage their money properly throughout the month may not be clear about how much they can afford to pay back. The problem lies in the APRs that are quoted, as the interest rates are not comparable to loans taken out over a longer period. The rates themselves are not dissimilar to these longer loans, but because they are only over a few days or weeks the annual interest rate quoted seems extortionate. However, as the loan is for a short period of time the total amount paid back is not excessive.

Charges Increase Rapidly

This is true, the interest charges and fees will mount up very quickly but only in the circumstances where you are missing repayments or are extending the loan. If you pay off the loan as expected within the agreed timeframe, this will not apply and all the charges and fees will remain as initially agreed.

No Time to Choose Wisely

These loans are often required quickly as people realize that they need funds urgently before their wages are paid. The worry is that the first lender that offers a loan will be accepted without thorough checking of the conditions of the loan and the lender. This can happen, but a company such as Bonsai Finance do all that work for you so you simply have to choose the appropriate loan from the choices given.

What These Loans Can Actually Do for You

Sometimes when you need a little extra cash you would like to take out an instant payday loan, but bad credit worries make you think it wouldn’t be possible. This could not be further from the truth, and just as an example, the lenders we deal with can supply instant payday loans bad credit with excellent rates but they also have benefits over and above helping you with immediate money issues.

When you have a bad credit score it can seem impossible to imagine it ever getting better, but there are things you can do to improve it. One of these is to show that you are capable of paying back repayments in full and on time. This can go a long way to making sure that your credit rating increases as you are proving your trustworthiness, with the added benefit of the charges and fees remaining the same as when you agreed the loan.

When we find lenders who can offer you loans, we match them to your exact requirements meaning that you will never have to rush to accept the first one you see without knowing the fees and charging schedule. As these will also be within your budget, completely affordable and with competitive interest rates, all the worries that people generally have about instant payday loans bad credit can be forgotten about. They won’t be as expensive as people think, the charges won’t increase rapidly if you pay the installments on time, and with our selection criteria you will only be given suitable loans for you to choose from.

3 Examples Where Instant Payday Loans Bad Credit Can Work

As with any type of loan, there are pros and cons and you are going to repay more than what you borrowed with interest added. However, this needs to be weighed up against the fact that payday loans can help to get you out of financial tight spot quickly.

While payday loans can be taken out for just about any reason, there are some reasons common to this type of loan. Generally, this type of loan is taken out when you need to get hold of money quickly to cover an unexpected expense and here are some examples of situations where instant payday loans might work.

  1. Overspending and Finding You Are In an Unauthorised Overdraft

You might have gone out for the day and not realised how much money you have been spending. When you get home and check your finances you might find you have gone into an unauthorised overdraft and fees are going to be added daily.

With many banks, the fees for unauthorised overdrafts are huge. For instance, if you go into an unauthorised overdraft with TSB you can expect to pay a total of £76.35 in fees if you go over by £100 for just 7 days. This means that if your payday is three weeks away, you will pay £229 in fees for that overdraft.

Applying for a taking out instant payday loans bad credit might save you money in the end as the funds from the loan are paid into your bank account, so the overdraft is cleared and you are out of the red. Of course, you have to repay the payday loan but usually it will not be as expensive as the unauthorised overdraft fee.

  1. Your Car Breaks Down – Rely On Instant Payday Loans Bad Credit

If you rely on your car to go to work or travel around with children you would miss it if it weren’t there. However, what might happen if your car breaks down and you find the repair bill is going to be more than what you have in the bank.

If payday is some time away, life could get very grim. You would have to take public transport to work, which means getting up earlier and leaving at a set time for the bus or train. Miss the bus or train and you will be late and may be docked money from your pay.

Of course, you also have to find money to cover public transport and this is certainly not cheap, especially if you live in or close to one of the big cities. This could add up to tidy sum and more so if there are two people to pay for, and/or children. You could end up paying out more in fees for public transport than you would in fees for a payday loan to get your car fixed.

Then there is the fact that life can be stressful without your own car. You would have to struggle with shopping and the children. With a payday loan, you could pay to have the car fixed, avoid public transport fees and stress and repay the loan when payday comes around.

  1. Your Cooker Needs a Spare Part

What would you do if your cooker broke down and it needed a spare part and you didn’t have the money until you were next paid?

If you live alone, you might get through to payday relying on cold meals, such as sandwiches and salads, but what if you have children? There is always take-out to consider, a hot pizza or fish and chips, but these are going to come at high cost and payday might be some time away.

With a payday loan, you could get money in the bank on the same day as being approved and pay for the repairs to the cooker. In the end, the loan might work out cheaper than take-out meals would cost.

The above are just three instances where instant payday loans bad credit may work to your advantage and even save you money in the end. Apply with our help today to get your finances back on track.