If you find yourself in a tricky financial situation, there are many different ways you can borrow money – you can ask for help from family and friends if they are able to provide it, you can use a credit card, use lending companies or else take out a loan from a bank. Different types […]
Bad Credit Quick Loans In The UK – Apply Now For An Instant Decision
If you’re looking for a bad credit payday loan, you’re not alone. Thousands of people search online each day for emergency same day loans designed to help overcome short-term financial issues.
Many of these loans are referred to as payday loans. Historically, a payday loan was defined as a short-term loan designed to be repaid on your next payday. However, the concept of emergency payday lending in the UK has changed slightly over the years, and the term “payday loan” now broadly covers most forms of short-term, high-interest credit.
If you’re searching for a loan for people with bad credit and would like further information, keep reading. We’ve got all the information you’ll need about same day emergency loans and payday loans, which will help you make a more informed decision on which type of financing to choose.
What is a bad credit emergency payday loan?
A bad credit payday loan is a form of short-term finance which is designed to help those with poor credit ratings to overcome life’s unexpected money emergencies. These loans are heavily regulated by the Financial Conduct Authority (FCA).
Payday lenders can offer high-interest loans for up to 12 months, with a cap on fees and charges. These caps mean that you will never be expected to pay more than £24 per month in interest on each £100 borrowed. You’ll also never pay more than double the original amount you have borrowed.
What is bad credit?
Bad credit is a term used to describe the current financial situation of a person with a history of poor financial management. People with poor credit ratings are likely to have failed to keep up with credit payment obligations in the past. These obligations can include utility bills, credit card payments or loan repayments.
Having bad credit can prevent a person from obtaining finance from mainstream lenders, such as the high street banks. By its very definition, bad credit is an indicator to lenders that a borrower presents a risk to them in terms of making repayments. This is based on their history of failing to meet repayments.
Bad credit payday loans explained
Bad credit wage day loans are designed to meet the needs of those who need urgent access to cash, despite having a poor credit rating. They are one of only a small number of short-term finance products available to those with a bad credit score.
These loans typically have high interest rates, which reflect the risk taken by the lender. Before taking out a bad credit emergency payday loan, you should ask yourself “can I afford to repay this loan, in-full and on time?”
When taking out a bad credit loan, it is imperative that you borrow within your means and stick to your repayment commitments. Failure to do so could result in even further damage to your credit rating, which could severely impact your ability to access credit – even in the form of high-interest loans – in the future.
I’ve never borrowed any money – why is my credit rating so poor?
A bad credit score is usually an indicator of financial mistakes you have made in the past. However, sometimes a low credit rating can occur if you have no borrowing history whatsoever. It may sound strange, but if you’ve never borrowed money, traditional lenders will have no inclination as to whether you’re trustworthy enough to make repayments on time.
By taking out a bad credit payday loan and repaying it as agreed, you could actually increase your credit score. This could improve your chances of accessing credit from a wider range of sources in the future.
Bad credit loans direct lender information
All forms of personal borrowing should be issued and approved by an FCA-authorised direct lender. Bad credit payday loan products are no different.
If you feel confident about your credit rating and believe most bad credit loan providers will approve your loan request, you might find it useful to compare your loan options to ensure that you’re getting the best possible deal from a direct lender.
Most payday loan direct lenders are happy to provide third-party customer reviews, which should help you to make an informed decision.
Credit brokers for bad credit loans
If you’re looking for quick loans for bad credit via a direct lender, it can be a good idea to use an online credit broker. Payday loan credit brokers scan the entire market of direct lenders in a matter of minutes to provide you with the best possible deal in terms of acceptance rates and APR.
You’ll find it much easier to get accepted for a loan with a lower APR when you use a reputable credit broker – which is where we come in. Why not apply for a payday loan today with us?
Bad credit emergency loans: frequently asked questions
Can I take out a payday loan with bad credit?
If you currently have a poor credit score, you might still be able to take out an emergency payday loan. Bad credit quick loans are designed to help people with poor credit scores. However, the risk to the lender is offset by higher APR rates. Lenders look at loan applications on a case-by-case basis – there are no guarantees that you will be approved or rejected when you apply for an emergency loan.
Quick loans with bad credit: will I be automatically declined if I have a poor credit score?
Having a poor credit rating doesn’t necessarily mean you will be automatically declined for an emergency loan. However, if your credit rating is particularly low, you might struggle to find a direct lender that is willing to approve your application for short-term credit.
I haven’t been approved for any quick loans with bad credit – why not?
If you have an exceptionally low credit score combined with a history of missing credit commitments and loan repayments, this could affect your ability to take out a payday loan. However, it’s important to remember that you can improve your credit score by taking measures to rectify missed payments and ensuring that you meet future credit obligations.
What are the criteria for payday loan approval?
Payday loan approvals are dependent on specific circumstances. Providers of high-cost, short-term financial products have to ensure that their loans are affordable for their customers. This means lenders will look at your earnings and subtract your expenses to calculate whether you can afford to repay. In addition to looking at your monthly wage, a payday lender might also want to know how much you spend each month on:
• Rent/mortgage payments
• Credit expenses
• Recurring expenses (monthly TV subscriptions or phone contracts, for example)
The amount you have left over at the end of the month needs to be sufficient to cover your repayments.
How long does it take for a payday loan to be transferred into my account?
If your application for a bad credit payday loan has been approved, the money can be paid into your account in as little as fifteen minutes, provided your bank accepts Faster Payments. You should speak to your bank to ascertain whether your account has this facility.
It’s worth noting that loans aren’t processed 24 hours a day. If you apply for a bad credit payday loan late in the evening, you might not receive it until the following morning. Ultimately, the length of time it takes for your loan to be paid out will depend on how your lender of choice operates.
Will a poor credit rating affect my ability to access quick loans for bad credit?
Even if you find a direct lender willing to offer you a bad credit payday loan, you may find that your credit score could affect your loan. For example, lenders might offer you a loan at a higher rate of interest if they feel that you present a high level of risk. Some lenders might limit the amount you can borrow until you can demonstrate an ability to repay on time and in full.
Can I get a no guarantor loan with bad credit?
Yes, this is possible. Bad credit payday lenders don’t usually require you to have a guarantor – unless of course they specialise in guarantor loans. When you take out a guarantor loan, the credit history of the guarantor is usually of more importance to the lender. When you take out a bad credit loan without a guarantor, your lender will take your ability to make repayments into account.
Does my credit score really matter when it comes to accessing finance?
Your credit score is an incredibly important factor when it comes to determining whether you’ll be able to access finance. If your credit score is low, you might find it difficult to access any kind of finance whatsoever. This is because all lenders assess your level of risk when it comes to repayments. If you have a long and varied history of missed repayments, it could indicate to potential lenders that you are too much of a risk.
To better understand how your credit rating works, why not sign up to a free credit reporting website?
Does taking out a payday loan imply that I have bad credit?
Not necessarily. It’s not unusual for a person to apply for short-term, high-interest finance online when they run into an unexpected cash flow problem. However, in broader terms most high cost financing options are applied for by persons with lower credit scores.
Lenders generally take this into consideration when deciding on the terms of a loan – such as the amount an applicant can borrow, how much it will cost them and how often the repayments must be made.
How our service can help you access quick loans for bad credit
We work alongside a dedicated panel of FCA-approved payday lenders. Most of these lenders can approve emergency loan applications, even for those with poor credit histories. It’s completely free of charge to use our service.
When you use our credit broker service, your details will be instantly sent to our panel of trusted payday lenders. This provides you with greater access to a variety of credit options, which means you’ll have a much higher chance of having your loan application approved.
On a weekly basis, we help thousands of people access quick loans for bad credit. Why not try for yourself, and see how quickly we can match you with an affordable financial product from a trustworthy payday lender?
Please be aware that not everybody who applies for a bad credit payday loan will be accepted. Like all personal financial decisions, it is important to practice responsible borrowing when you take out an emergency loan.
Before agreeing to anything, you should ensure you’re able to meet your repayment commitments in full and on time. By doing this, you’ll avoid getting trapped in a cycle of debt – sometimes referred to as the debt trap.
Advantages of payday loans
Quick loans for bad credit are typically accessible when you can’t find financial help elsewhere. When you take out an emergency loan, it could mean all the difference between keeping your car on the road, ensuring your washing machine is functioning properly or preventing your phone from being disconnected.
Payday loans can be something of a lifeline to those with bad credit who need rapid access to funds. Some other advantages of emergency payday loans include:
• A simple and non-intrusive means of applying for credit.
• Access to an unsecured loan (if you miss a payment you won’t risk losing valuable possessions).
• Applications can be completed and processed online for complete speed and efficiency.
• Relatively short-term repayment periods, which means you won’t be tied into repayments for months or years. With quick loans for bad credit, your commitment could be as little as a few weeks.
• Access to relatively small amounts of money, which helps keep the cost of borrowing to an absolute minimum.
Payday loans for bad credit: what are the disadvantages?
Quick loans for people with bad credit scores can have their downsides, too. For example:
• Payday loans are generally available to those who have been rejected for finance elsewhere. This can make it tempting to take out a loan, even in a non-emergency situation.
• Most payday loans come with a much higher APR than traditional forms of finance. While there are caps and restrictions in place, you should always be aware of how much you’ll be expected to repay before committing to a payday loan.
• By their very definition, payday loans are designed to bridge the shortfall between now and your next monthly wage. You won’t have very long to repay what you owe, which can cause further financial issues later in the month.
Will applying for a payday loan affect my credit rating?
When you apply for finance, a formal search of your credit file will be undertaken before you are approved or rejected. This leaves a “footprint” on your credit file. If you already have a precarious credit history, further searches of your file could make your situation worse. Multiple searches on your credit file will indicate to lenders that you are regularly applying for loans, which could suggest that you are unable to effectively manage your finances.
Making multiple loan applications in rapid succession could also damage your credit rating. If you find that you are being repeatedly declined for finance, it is recommended that you do not continuously apply for payday loans in quick succession.
If you have been declined by a direct lender after they have performed a hard credit search, you should wait a minimum of 14 days before reapplying with another provider. This is because the next lender will be able to see your most recent application for finance. Having too many rejected loan applications in a short period could create a negative impression of your ability to manage your finances.
Are there any alternatives to bad credit payday loans?
If you’re struggling to access quick loans for bad credit, you may want to consider applying for guarantor loans or peer-to-peer loans. You may also find it beneficial to contact your local credit union. However, your eligibility for finance will depend on your credit score.
Conclusion: should I take out a bad credit emergency loan?
If you’ve made financial mistakes in the past, you might still qualify for bad credit loan products. As a credit broker, we work alongside specialist lenders which will consider your loan application on many factors.
The good news is that payday lenders are reasonably flexible. Most will concentrate on your ability to repay a loan in the future, as opposed to focusing on your financial past. However, if you do decide to take out a bad credit loan, you should do so on the proviso that you intend to borrow responsibly and repay on time.
When you meet your repayments on time every month, you’ll start to notice that your credit score begins to rise. This demonstrates to lenders that you are a responsible borrower. This could help you to access better finance offers in the future. If you need fast access to cash, and you can meet the repayment schedule as agreed with your direct lender of choice, you should consider taking out a same day emergency loan.
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