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Representative example: Borrowing: £1,200 Interest: 0.34% per day for up to 75 days (124% per annum, variable) Representative: 49.7% APR (variable)
A bad credit history should not affect your ability to apply for a loan. In fact, millions of payday loans are granted each year in the UK. Because your day-to-day running costs may be thrown out of kilter by life events, a fast, no-fuss solution should always be available to you in order for you to finance the extra expenditure. It could be that you have just been made redundant or that you require urgent medical treatment. Or you simply may wish to plan for a holiday that you could otherwise not afford. These, and more, are all valid reasons for turning to payday loans for people with bad credit.
In order for you to find the perfect fit, read on about the ins and outs of considering bad credit payday loans in the UK and discover the bonus of using a loan broker as a calculating tool, a safety guarantee and a means of banking on the funds you need fast.
Payday loans are also referred to as short-term loans or cash advance loans because their timeframe is usually around 30 to 35 days. Depending on your individual circumstances, the lender may offer you a payback plan stretching over months.
A payday loan for people with bad credit is designed to help you bridge the gap until your next paycheck. Some months can be laden with extra expenditure and you might find yourself short of cash in the run-up to Christmas, coming up to a family wedding or just because your new job won’t issue you with your first paycheck until you’ve accrued a full month’s worth of work.
These are all situations where a payday loan can finance extra costs ahead of your next instalment. It’s best to pencil in these costs when planning your budget for the coming month or months so as to keep afloat.
Some lenders will allow you to take out a payday loan despite a very bad credit history. Sometimes that’s even their field of expertise so you will be able to get a quick response to your query.
Nowadays most lenders offer online services. While you can still find direct lenders that require your presence to physically collect your funds from a post office and again several weeks later when your payment is due back, the convenience of online lenders means you can get started any time, anywhere. These are the types of lenders that your broker is working with.
Although it may seem counter-intuitive not to seek a loan directly with a lender, but rather turn to a loan broker to review your options, it really is a sure-fire way to have those pounds in your account fast, as you’re about to find out in the next few lines.
The approach whereby you put your query through a broker’s platform enables you to get a good outlook of what’s available to you and choose a tailor-made agreement for your specific needs. Please note the contract per se will only be entered once the lender you settle on approves your application. Having said that, the results you will receive within 2 to 5 minutes from the loan broker are a pretty safe indication of which lenders have already stated they are fine with conditions matching yours.
Therefore, putting your contract in place directly with your lender of choice following the initial filter performed by the loan broker is something more of a mere formality. Because you’ve come with a referral, as it were, the loan agreement should be up and running in a flash.
Up until then, you won’t have to spend a penny, nor will you have to undergo hard credit checks at that stage. Therefore, a loan broker is a reliable, safe and efficient partner to get one or more loan quotes, notwithstanding the burden of bad credit history.
As payday loans for people with bad credit are not supposed to finance debt, the sums that tend to work out best are comprised within the £50 to £1,000 range. If you have been struggling to get out of debt for some time, you may wish to consult with impartial debt advice experts StepChange.
There are nonetheless cases where you may need to apply for more. For any unforeseen event that requires you to fork out over £1,000 that you currently don’t hold in your bank account, get advice from your loan broker and find out what your options are. On occasion, substantial amounts of several thousand GBP can be granted. Your loan broker will be able to advise you whether it is within the realm of possibility in your case.
Larger payday loans for people with very bad credit shouldn’t be ruled out, as long as monthly outgoings allow a structured repayment plan. This is something your loan broker can figure out for you in a matter of minutes, therefore it’s definitely worth investigating.
If your loan broker returns a negative result, it could be that the information at hand did not match with any offers from the pool of authorised lenders. The right loan for you may just be a few more clicks away, so despair not. Just start afresh query and get closer to your goal by adjusting your repayment forecast and reducing the loan amount slightly. You can launch as many queries as you wish, with no impact whatsoever on your chances of securing the credit you need.
A loan broker platform is especially useful as, on account of their short-term nature, payday loans for bad credit are often needed as fast as possible. This way, you can skip the time-consuming part where you would first compare dozens of bad credit payday loans from direct lenders. Knowing that most may not be compatible with your search criteria, it can be a daunting task to go it alone in a search for a bad credit payday loan in the UK… let alone an entirely discouraging experience. To remain on top of things, enlist the help of a loan broker and get the deal you want, as quick as possible.
In essence, your loan broker lets you cut to the chase by selecting the lenders that you can expect to borrow your chosen sum from, so you can avail of the funds as quickly as possible. Forget about lengthy checks and bank transfers that take forever and a day. With the right information to hand from your loan broker, you could have the funds available into your bank account the same day you sent your initial query.
In this respect, payday loans for people with bad credit have benefited a great deal from the surge in financial technology companies – fintech. Getting a loan at the tip of your finger is the norm, with advanced algorithms enabling any borrower, regardless of their credit rating, to find out if they qualify and under which conditions.
If your loan broker has identified more than one potential lender for your specific needs, you could save yourself some money by comparing these offers. Have a look at the APR and repayment plan of each lender so as to make an informed decision on which to contact.
Dig into their terms and conditions and pick the lender with the lowest APR, or Annual Percentage Rate. In other words, the lowest the APR, the less interest you will get charged on your loan. APRs and monthly instalments vary wildly, with extended loans also available, ranging from 3 to 36 months. APRs can be as low as 8% but can vary wildly. Set yourself limits for what APR is manageable and acceptable for you before launching into the process of getting a bad credit payday loan in the UK.
You may also wish to consider what kind of repayment you require. If you can only pay back smaller sums, you’ll need an agreement over several months. Check if the lender applies any fees for instalments over a longer period than the standard 30 days.
Doing your homework before contacting any lender can save you money, so remember to shop around a little. Payday loans for bad credit centre around you as the customer just as much as any other type of loan. Therefore you should avail of the best advice and be able to take out a tailor-made loan that meets your expectations.
This question is crucial to the success of your project. What you want to avoid are late payment fees, as they could throw your whole financial stability out of balance. Additionally, failing to pay your loan instalments back on time will be marked against your record and further affect your credit score.
Therefore, once your loan has been granted, make sure you carefully monitor your outgoings in order to stick to your repayment plan. If you were able to proceed with a loan, then you meet the criteria for staying on track with its repayment.
With fintech lenders competing to get customers like you, instant transfers are often a given. There too, you should skim through your chosen lender’s T&Cs to confirm that is the case. Some lenders offer a 15-minute timeframe from the completion of your agreement until the funds are deposited into your bank account.
Save yourself the hassle of trawling through tons of websites, comparing bad credit payday loans from direct lenders, filling in countless contact forms to see if you’re eligible to apply for the loan you want. A payday loan broker is regulated by the Financial Conduct Authority (FCA) and will ensure your query is sorted in an ethical way, compliant with all financial regulations in place in the UK. It is important to have the guarantee that the lender you will enter a contract with is an approved financial operator
A loan broker’s services are free of charge and involve a soft pull of your credit information. This includes data such as your contact details, income as well as the number of expenditures you typically incur. You will get an answer from your broker within minutes and be ready to contact the lender or lenders of your choice in order to make a final decision on which option you want to go for.
The hard search data gathered by the payday loan company you enter a contract with will remain in your report for 12 months.
Under the General Data Protection Regulations (commonly known as ‘GDPR’) that came into effect on 25th May 2018, data should only be kept for as long as absolutely necessary. Only a failure to adhere to your lending agreement will affect your credit score, making it not impossible for you to be granted access to a payday loan in future but making it nevertheless more costly for you.
All in all, view your loan broker as you would your personal financial adviser, only free of charge. They will guide you through the maze of payday loan lenders to land you with the ones that match your search criteria. By providing you with solutions from authorised lenders only, they help you apply for loans that are viable in your current situation, thereby preventing you from entering into unreasonable agreements that may end up worsening your credit rating. Get the loan you want from a secure source and lean on your broker for support.