Bad Credit Payday Loans
The economic condition of the world creates the situation for people to need a loan from time to time to take care of some basic financial needs before the next payday. The loan may be to cover living expenses or attend to some urgent financial needs while the next pay is still some days away. Unfortunately, these exigencies always happen at the most inappropriate moments, whenever one is facing a financial crunch.
If you find yourself in such a dire need of money and there seems to be no way out, what can you do to salvage the situation? The solution is to apply for a loan which may come in the form of a personal or short-term loan. What are your options? There are many of them but let’s start with personal loans.
A payday loan is a short-term unsecured loan that is usually small and referred to as a payday advance. There are different types of Payday loans with many benefits. Therefore, let’s dig into this short-term loan and dig up the treasures hidden in it.
Advantages of Payday Loans
Unlike other types of loans that such as using credit cards or bank loans, if you need some amount of money for a short period, Payday loans will give you these benefits:
Instant payment is guaranteed
If you approach a lender or a bank for a short-term loan, the process will take some days. Sometimes, bank loans do not arrive on time to be used for the desired purpose in the case of urgent need. This problem can be eliminated with a Payday loan. If you apply for a Payday loan, you may have access to the money in less than 24 hours.
No credit rating
Your credit ratings do not determine whether you are qualified to get a loan or not. Payday loans are available for whoever wants it regardless of his or her credit ratings. Once you meet the basic requirements such as aged 18 years and above, you are qualified for a Payday loan.
It is fast
Applying for Payday loans on the Internet is relatively simple and fast. Within a couple of minutes, you are through. The payment is also fast.
Ease of payment
Payday loans are short-term loans that are taken with the next payday in mind. Therefore, it is very easy to pay this loan within a short period, thus, eliminating unnecessary financial pressure on you.
Easy to qualify for
This is another advantage of this loan that makes it popular among many people. Qualifying for this loan is not difficult as your credit score plays no role in determining your qualification. You just need to meet some simple requirements that are common to every other loan forms.
Flexibility is one other benefit of Payday loans. There are no rigid rules and restrictions regarding how the money should be spent. This is a big difference to a mortgage or car loan where you have to use the loan to buy either a house or a car.
It is very convenient to get a payday loan. You don’t have to go through signing much paper and other challenges that are common to other loans.
What to consider before you apply for a payday loan
Before you apply for this loan, you should consider some important factors that will help you get the loan without wasting much time and make your payment easy. What are these factors? Consider a few of them:
- It is very important that you know how long you need the loan. The duration of the loan will help you decide how you will repay it. It is not uncommon to see some lenders go as far as 30 days. This shows the importance of deciding how long you need the loan in advance. It will also help the lending agency to determine your fee and other relevant things.
- One of the factors that you can’t afford to overlook is the loan amount you need. Since the interest rate depends on the loan amount, it is advisable to determine in advance the loan amount so that you can easily know the interest to pay in addition to the loan.
- Don’t forget to consider how you want to pay the loan too. Payday loans are usually paid back within a few days after getting the loan which makes it urgent that you have a solid payment plan that will help you offset your debt without mounting more financial pressure on yourself.
- Before you sign the dotted lines, check the interest rates, loan terms, and the available loan types. You can use the information to select the type of loan that will be suitable for you and make repayment easy.
- Know the terms and conditions of the loan. This will be of help in getting a good understanding of what you are going into. Some unscrupulous lenders prey on the urgent needs of borrowers and exploit them by charging unnecessary fees. You can avoid falling victim to these fraudulent practices by going through the terms and conditions of the loan before you sign the agreement for the loan. If a potential lender is unwilling or reluctant in releasing the loan agreement to go through, you should consider moving to the next lender. Such a lender is a typical scammer that will play on your desperate need for money to exploit you. Don’t blindly walk into such a financial trap. It will worsen your financial situation.
These are very important because getting the loan is usually very easy, but repayment may not be that easy if you don’t consider these factors. For instance, if you don’t consider how you can plan your budget before taking a loan, you may take a loan that you will find difficult to pay. Any failure to make payment at the right time can lead to penalties and fees.
So, what are the different types of payday loans to choose from?
Payday loan types
You can choose from a good number of payday loans according to your need and financial ability to repay the loan. Some of the most popular loan types are:
Online Payday Loan
You must repay the loan and interest from your account immediately once you receive your monthly payment. This loan has a short range of between £100 and £2,000. The factor that determines the amount of loan that is available for you is your income. The higher your income, the more loan amount you have access to.
You can get the money deposited that same day if you are in urgent need of it at no additional charge.
The time frame for paying back the loan is 14 days. In some cases, you can make the payment in 21 or 28 days. This depends on the frequency of your payment at work. The usual payment period is 14 days. If for any reason you cannot meet up with the payment within the stipulated time, it can be extended by 1 or 2 weeks depending on your agreement with the lender. You should note that extending the payment period also attracts and extra fee. If you default in your payment, some companies will accept the fee while the payback time will be renewed. Others may offer you the renewal of the time for as long as you want with the objective of helping you to pay the loan without compounding your financial problems.
People from all walks of life can use this loan to attend to their urgent financial needs. Before you apply for the loan, you must meet these basic requirements:
- You must be a UK citizen. Most of these lenders reside in the United Kingdom and will need to find a way of getting their money back if you default in payment by hiring an agency or through a lawsuit. You must be physically present where they can see you.
- You must be aged 18 and above. This is a requirement according to the government. You are not considered of age and eligible for the loan if you are below that age.
- A steady source of income is a must. Of course, this is important for the repayment of the loan. How will repayment be possible if you have no job?
- Your monthly income must not be less than £1,000. If your income is less than this, payment may be difficult after paying for house maintenance, your expenses, and tax.
- According to some companies, you must have been employed by your present employer for between 3 and four months.
- Some companies require a checking account while some do not.
If you meet all these basic requirements, you can apply for the loan and no questions will be asked about the purpose of the loan.2
No Fax Payday Loans
This is like any other Payday loan where you are given a loan that will be due for payment when your next payment is due. The entire process of applying for the loan can be done through the Internet without leaving the comfort of your home. Hence, you don’t need to mail any for or fax one.
This loan type gives a loan between £200 and £500, but some companies can go as far as £1,000. This depends on what your monthly income looks like. If you don’t have the resources to pay up within the agreed time, you must pay the fee and pay the loan later.
The financial fee you need to pay on loan ranges between £10 and £30 if your loan doesn’t exceed £100. However, the commonest fee is £25 per £100 loan. You can check for this on the official website of the lending company if you are in need of it.
Eligibility for this loan is considered by using the same rule as eligibility for the Online Payday Loan: be 18 years and above, a regular source of income and so on.
Instant Payday Loans
Just as the name suggests, Instant Payday Loan is the ideal option for many people because it is treated with urgency so that those who want the loan can get their money that same day and use it for whatever purpose they deem fit. The application review is done as soon as the application is received after filling it online. It is possible that you are contacted by phone or mail, or both as the final stage of completing the loan process. If your eligibility is confirmed, your cash will be deposited in your local account without delay. On the next business day, you can approach your bank and withdraw your loan. To make the process faster, you may ask the lending company to wire the money to your bank, although that will cost you additional charge.
The range for Instant Payday Loan is usually between £100 and £2,000. Depending on the lender, you can get a higher loan if you meet the basic requirements and other requirements set by the lender. This money will usually be deposited in your account within 24 hours for your use. If there is an emergency that can’t wait, you may get the money wired into your account, but you will be charged for the service while your bank will charge you for receiving the wire too. This makes the wiring option a very expensive one. However, if there is a real emergency that can’t wait, you will find it a good option.
Although this loan is expensive, it is used by a good number of people to address their unexpected their financial challenges due to the ease of processing the loan. The guarantee of swift payment makes people overlook the high cost of getting the loan.
In contrast to banks that charge interest rates, this loan charges a specific fee as determined by the lending company. Within a company, there may be different fees that are determined by the customer and the specific needs of the business. In that case, the fee will be increased to justify the extension.
Bad Credit Payday Loans
This is another Payday loan option that you can use if you are cash trapped. It is the best loan option for individuals with a bad credit rating as the lenders don’t care about your bad credit rating. If you need extra cash and your credit rating prevents you from getting a bank loan or credit card, turn to Bad Credit Loans because you have a better chance of getting a loan than using other loan types.
This loan type offers a loan in the range of £200 and £1, 000. Your income is the only factor that will determine how much loan amount you can get when your application is reviewed by the lender.
If your application is successful, you can get the loan in your account usually within 24 hours after your application has been successfully processed.
In exceptional cases, you can be given an extension of one or two weeks, depending on the agreement between you and the lender. Another common trend is increased fee after a payment extension if due to some issues beyond your control you fail to make full payment within the agreed payment terms. The payment guideline for this loan varies from one lender to another.
The regular fee for this loan is between £10 and £30 for every £100 you borrow and varies from one company to another. If you are unable to make the full payment as agreed, you will be charged an extra fee that may be high and varies according to the terms and conditions of the loan.
It is up to you to decide what you want to use the loan for as the lender are not interested in the details of the need for the loan.
Paperless Payday Loans
Paperless Payday Loans have some differences from the other load types discussed here. The whole application process and others are done via the telephone and online. While some loans require evidence that the borrower is employed, the lenders of Paperless Payday do not have that requirement. No proof of your income is also expected. They rely solely on their databases to get any information they need about you and from you. The result of their paperless principle is a more convenient and comfortable processing.
The range of loan on Paperless Payday Loans is £100 to £1,000. If your situation is very critical, some companies may consider lending you more than the regular limit. Averagely, the loan amount is between £200 and £500, and you can specify the amount you want while applying for that loan online based on your income.
Of course, it follows the same payment trend. Any failure to meet the loan deadline will lead to the extension of your loan period. The extension will attract a higher fee. In some cases, the lender may accept the fee and renew the loan if you cannot pay the loan and the fee according to the agreement.
Anybody can take advantage of this loan option to get out of an unexpected financial mess if the person meets the basic requirements which include that the person must have a computer system and access to the Internet. Apart from that, the required minimum age of 18 must be satisfied as well as a minimum monthly income of £1,000.
Also, in conformity with the rules guiding Payday loan, no interest rates are attached to the loan, but a regular fee of between £10 and £30 will be charged if you borrow £100. If you are in urgent need of the money, you may have to deal with the £25 that is the common charge if you borrow £100. Since there are no restrictions on the purpose of the money, you can use it to satisfy any immediate financial needs.
1 Hour Payday Loans
These are very fast loans that are given to borrowers before their next paycheck. Just as the name suggests, the processing of your application will be done within an hour after online application and submission. After the submission, the lender will establish contact either by phone or e-mail. If you are eligible and your application is approved, you will be given the loan usually instantly. If you can afford to pay an extra fee, the money will be wired to your account as soon as possible.
The only factor that is always considered before giving out the loan is your income. This information will be used by the lender to determine what you can borrow. If your income is high, you may have access to £1,000 or more if you wish. You can even borrow more than this amount of money if you already have a good reputation with them.
Due to some unexpected events beyond your control, you may be unable to meet up with the payment. The lenders are aware of this possibility and have put some measures in place to accommodate such exigencies. You can extend your payment period while you take care of the fee.
This loan option is also available for people from all walks of life. The only requirement is to meet the basic requirements that have been mentioned above. For the sake of emphasis, the borrower must be 18 years old and above, be a UK resident, a steady source of income is important as well as an account for payment. Even if you have a bad credit record, you can still put in for this loan.
These loan options are designed to give people rays of hope of getting the financial assistance they need at any time regardless of their credit score. You can always avail yourself of the opportunities offered by these loan options to take care of your financial obligation without going through the long and strenuous process of getting a bank loan, or any loan at all.
While their fees may seem to be on the high side, the service they render cannot be traded for anything. Instead of facing financial embarrassment, find a way out by using a Payday loan that can fit into your plans and budget.
30 Day Payday Loans
This loan type is different in that regard. As suggested by its name, the 30 Day Payday Loans allows a 30-day time frame if your income is once in a month. While most Payday loans also have fixed fee, this loan has different fees depending on the loan amount. The fee is determined by the duration of the loan. In general, the longer the duration of the loan, the higher the fee charged will be. These are two clear differences between this loan type and others.
While there may be a variety of loan amounts, the commonest loan amounts are usually between £200 and £1,000. Some borrowers can get loan amounts that are much higher than this range if they meet the basic requirement for it. In most cases, the lender will require that your income is high enough to accommodate the loan in addition to the knowledge of when you can repay the loan.
How soon you can get the money in your account depends on the lender. While it is true that most lenders will make money available to you after five working days, some lenders will deposit the money in your account within the next 24 hours after submitting your application. If you need the loan urgently, you should do some research and find out those who are ready to make that concession and make money available as soon as the next day.
One factor that doesn’t bear on your application is credit checks. The Payday loans lenders don’t consider your credit score before considering your loan application. You are eligible for the loan if you meet their requirements which do not include your credit history.
30 Day Payday Loans has a time frame of 30 days for borrowers who are paid monthly. If you can provide a proof of your payment, you are automatically qualified for the 30-day payment plan.
As stated before, the regular fee for a Payday loan is £10 to £30 per £100 borrowed if the payment time frame is 14 days. For the 30 days time frame, the fee is higher than this. It is important to know what the fee is before you take this loan type.
Our Payday Loans options listed above are the major Payday loans you can turn to for financial assistance whenever you need extra cash to settle some needs. It is a good idea to consider the pros and cons of Payday Loans with a view to having a balanced assessment of the loan as a way of ensuring that you have enough information to base your decision on if you need the loan.
The Pros and Cons of Payday Loans
Payday Loans are common among millions of people in the UK that have used Payday loans at one time or the other. Despite the popularity of this loan, it has some pros and cons that every user or potential users of the loan should know. Here are just a few of them:
Payday loans have some benefits that will make you consider using them as a temporary solution to your financial problems. Consider these few benefits:
- While there is an argument over the effectiveness of Payday loans as a permanent solution to a prolonged financial crisis, the lenders always point out the fact that the loans are not designed for a long-term purpose. They are rather designed to render short-term relief for whoever is facing a financial crunch. As such, it is very easy to pay because the loan amount is between £100 and £1,000 that can easily be paid off with the right budgeting by the borrower.
- Getting a regular loan is very difficult for someone with a bad credit score, even after the financial challenges that led to the poor credit rating have been overcome. This makes Payday loans a welcome development for this group of people. They can always turn to Payday loans whenever they need some extra cash now and then. Without the loan, they would have had nowhere to turn to when they need short-term loans to get out of a financial mess.
- While some may argue that the fees charged on these loans are too much, one can’t rule out the fact that its availability within a few days can make up for any shortcomings it may have. During moments of financial emergencies, other loans may not be readily available to offer some succour. With Payday loans, you can rest assured that you have somewhere to turn to.
Just as Payday Loans has its pros, it also has some cons. These are some disadvantages of using Payday Loans as a way of solving temporary financial difficulties:
- Another disadvantage of the loans that people point out is the difficulty of payment that some borrowers are facing. These borrowers find it difficult to pay their loans, leading to a frequent extension of the loans. This may create more financial problems for the borrowers.
- These loans are also expensive considering the fees charged on them. For instance, the fee of £30 charged on a £100 loan is higher than the interest on the same loan amount from other sources. This high fee may be responsible for the inability of some borrowers to repay their loans according to the agreement with their lenders.
- The high fee makes it ideal as a long-term solution to financial worries, unlike other loan types. This is a big minus for these loans in spite of their popularity and plusses.
The application process for Payday loans is very simple and straightforward. You need to consider your eligibility first before you proceed with the online application process. If you meet the requirements, you can then proceed to the website of the Payday loan lender you want to take the loan from. Fill in the required information including your employment details and the details of your bank account then submit the form when you are through.
After the submission, the lending service will perform its verification by running the information supplied through some databases. As a rule, most lenders don’t conduct any credit checks on you during the verification process. If your identity is confirmed, the lending service will contact you via e-mail or phone if they find you eligible for the loan. At this point, you can discuss other details of the loan such as the loan amount, duration of the loan, and other necessary information that will be needed to process your loan.
In most cases, the lender will process your loan on the very day that your identity is confirmed. However, it can take about 3 to 5 business days before you can get the money deposited in your account.
It is quite true that Payday loans have some negatives. This, however, does not remove their usefulness to millions of people who find them handy in times of urgent need of some extra cash.
Therefore, you have the full review of these loans, and that should be enough information to help you decide what is good for you. You can choose from a wide range of options if you ever have that urgent need of cash.