Select Page

Payday Loans Bad Credit

So many people with bad credit are scouring the internet for bad credit payday loans to alleviate their financial struggles. Basically, a payday loan bad credit was meant to be paid back on your next pay date.

However, this concept of payday lending in the UK is now more broadly defined as ‘high-cost short-term credit.’ Therefore, a bad credit payday loan is typically a high-cost short-term loan product designed to help those with a poor credit history.

Bad Credit Payday Loans

Bad credit payday loans are a form of unsecured loans and are aptly named so since they offer an easy way to access payday loans for people with bad credit.

These are people who have a very poor credit history or a very limited or even no credit history, sometimes caused by missing credit payment obligations. Such people usually struggle to take out loans from high street banks and low-interest lenders as they are usually seen as unreliable.

Payday loan for bad credit in the UK

Payday loans bad credit

Best Payday loans for bad credit in the UK are typically meant to meet urgent cash needs available to those with a bad credit history. They normally have high-interest rates hence one should make careful considerations before taking out the loan. A vital question one should always ask is “Can I afford to repay my loan in full and on time?”

Despite the high-interest rates, the Financial Conduct Authority’s cap on fees and charges will always apply. This means that you can never pay more than 24 pounds for every 100 pounds borrowed and never more than double the amount borrowed. However, it is advisable to borrow within your means and repay the loan on time.

Bad credit can also mean that you have no borrowing history. This is known as a thin credit file since there isn’t a lot of information for lenders to check and base their decision. This does not necessarily reflect badly on you. It just means that you can still prove that you are a reliable customer. There are various ways that you can improve your bad credit in order to access a payday loan for bad credit:

  • Using credit cards and making repayments in full and on time. This will improve your credit score.
  • Ensuring that you are signed up for the electoral register.
  • Repaying your outstanding debts before obtaining more bad credit payday loans.

Considerations Before Applying for Payday Loans for Bad Credit

There are various things that people who have bad credit should consider before applying for payday loans bad credit direct lender. Examples are:

  • A payday loan for bad credit should be approved and issued by an FCA authorized direct lender. Therefore, if you feel confident about your credit score, you should compare your lending options before approaching bad credit lenders. Fortunately, most of them offer third-party customer reviews.
  • Consider using an online credit broker. This can be a quick and efficient way to find the best bad credit loan, provider.
  • People search for “very bad credit loans no guarantor direct lender” often struggle to find the right lender, whereas a Broker might be better for them.

However, keep in mind that payday loans for bad credit approvals depend on very specific circumstances, such as:

  • Most loan providers usually ensure that the loan is affordable. They will look into your earnings and subtract all your expenses such as utilities, transport, food, credit expenses and rent/mortgage. Therefore the amount remaining should be enough to repay your loan each month.

Emergency Payday loan bad credit do not require a guarantor since a bad credit payday loan usually assumes it is you, who requires a loan (hence no requirement for a guarantor). Keep in mind to avoid getting trapped in a spiral of debt by constantly borrowing money without serious considerations for repayments.

People looking for bad credit loans, usually are in financial difficulty, so if you are one of them. Please seek financial debt help or speak to the FCA

Quick Links

Online loans UK – Our online loans page has all information about the different online loans that are available in the UK

No guarantor loans – Our loans without guarantor page explains what guarantor and non-guarantor loans are and which one would be best for you.

Payday loans – Our home page has all the information about online payday loans in the UK.