Bad credit payday loans are designed to cover emergency expenditure or unexpected bills. We all have budgets that we try to stick to, and perhaps you have been able to also put a little bit aside for a rainy day. The problem arises when something we didn’t want or expect happens out of the blue, and the money we have put aside for emergencies or treats just won’t cover it.
With a bad credit payday loan, you borrow the money you need today and then you pay it back in full normally within the following 35 days. Many borrowers decide to make their repayment date the next day they get their wages so that the loan is settled in full. This approach saves them the hassle of having to ring-fence part of the money in their bank account for later.
Because these types of loans are specifically put together to help out people whose credit histories aren’t perfect, they do come with a higher level of interest, when compared to other types of loan. There generally tends to be a much lower limit on the maximum amount a borrower can apply for too.
So, what do you need to know about bad credit payday loans?
Important to know:
- Will my credit score affect my chances of getting a bad credit payday loan?
- Can I check if a bad credit loan is right for me before I take one out?
- Does having a bad credit rating mean that lenders will automatically decline me?
- Is there any way that you can find out how likely you are to be accepted for a bad credit loan with no credit check?
Will my credit score affect my chances of getting a bad credit payday loan?
While credit scores are important to bad credit lenders, it’s important to realise that these finance providers have designed loans specifically for people whose recent financial past might include the odd missed payment or two.
Bad credit payday lenders and short-term loan providers pay close attention to more than just your credit score though. They take account of your life and your financial situation as it is today. They want their borrowers to be in regular employment.
These lenders also want to know how you spend the money you earn every month. They’ll ask you how much you pay on your mortgage or on your rent, how much you’re paying each month for existing loans, and what your monthly utility, transport, and food costs are.
What they’re trying to establish is the affordability of the loan you want to take out. If a lender concludes that, after the money you spend is subtracted from the money you earn, there is enough leeway for you to repay your loan comfortably, you have a better chance of being approved.
Can I check if a bad credit loan is right for me before I take one out?
It’s really important to know that there is no such thing as a no credit check payday loan.
The Financial Conduct Authority (FCA) authorises and regulates all the companies which offer bad credit payday loans. And they require a lender to run a full credit check on any potential borrower who makes a complete application for a loan. No credit check loans are not regulated by the FCA.
Does having a bad credit rating mean that lenders will automatically decline me?
No. There are many specialist lenders in the UK who work with bad credit applicants, and we will only present your details to those lenders on our panel who are more likely to offer a loan to borrowers with bad credit ratings.
Is there any way that you can find out how likely you are to be accepted for a bad credit loan with no credit check?
There is no definitive way but you might want to try our free Eligibility Checker. No credit search is run on you at any point if you use our Eligibility Checker. Within 60 seconds of completing the form, we’ll then show you our confidence rating on your loan being approved. Please note that a high confidence rating does not guarantee that your application for a loan will be approved.
If you decide to apply for a bad credit loan through us, we’ll send your details to the lenders most likely to approve your application – and only those lenders. Each one will run a soft credit search on you which other lenders will not be able to see if they run any type of credit check on you.
When the lenders we send your details to respond, we’ll redirect you to the website of the lender on our panel who is likeliest (although not guaranteed) to offer you a competitive and affordable loan. Only after you’ve answered their additional questions and completed your application form with them will a hard credit search be run on you.
The fewer hard credit searches carried out on your account, the better your credit score will be.
Please do not apply for a payday loan or a short-term loan if you can’t afford to make the repayments. If you are in debt and you’re worried about it, you might find it useful to contact one of the UK’s six leading debt help charities. Please click on the following links to find out more about what they can do for you – StepChange, PayPlan, National Debtline, the Debt Advice Foundation, the Money Advice Service, and Citizens Advice.
To apply for a loan of £100 to £10,000 to be paid back over a period of between 3 months and 60 months through Growing Power, please click here.