Which payday loan is best for people with bad credit?
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Representative APR 278%
Representative example: £500 borrowed for 90 days. Total amount repayable is £672.60. Interest charged is £172.60, interest rate 140.0% (variable).
Representative Example: If you borrow £400 over 6 months - payment 1: £162.66, Payment 2: £, Payment 3: £, Payment 4: £, Payment 5: £, Payment 6: £, Rate of interest 0.80% per day. Total repayable £736.00. Interest Rate 292% per annum (fixed). Representative 1,256.5% APR.
Acquiring Short Term Loans From A Direct Lender
If you’re looking for quick cash, one of the best options you have is short-term loans. Unlike the regular loans from banks, this one provides a smaller amount which is settled within two weeks or after a month. It is beneficial if you need to settle unexpected expenses, running out of cash, or you’re having an emergency. Unlike traditional lending companies, a short-term loan direct lender does not have strict criteria and complicated terms and conditions.
A short-term loan ranges from £100 to £1000 and once your loan application is approved, the fund will be transferred directly to your bank account. The entire loan application is less complicated and it can be processed instantly. But despite its advantages, the loan comes with several disadvantages that every borrower should consider, especially its interest rate.
Short L Term Loans UK: Short Term Loans And Its Interest Rate
One of the popular drawbacks that a short-term loan UK has is its expensive interest rate. It is bigger than the ones offered by banks, thus if you’re looking for a cheap alternative, then this one is not for you. The loan does not ask for a credit report, a guarantor and collateral, so to compensate the risks, the lender charges a very high-interest rate. Because of this, most borrowers are having difficulties repaying the loan and while a loan extension or “rollover” is allowed, additional charges are applied on top of the already expensive debt.
Another con is the repayment term. A short-term loan is settled in one lump sum, within two weeks or one month. You need to settle the loan on time to avoid penalty fees.
Short-Term Loans For Bad Credit
A bad credit report is not a primary criterion for most lenders; however, possessing a good credit remark increases your chance of getting approved. Loan providers use your credit rating to know to assess your creditworthiness. That being said, there are still lenders who will not use your credit score to come up with a decision; however, they may use it to determine the maximum amount you can borrow and the interest rate that they will apply. The higher the credit remark, the lower the interest rate; the lower the credit remark, the more expensive the interest rate to be applied.
Meanwhile, you have other options to choose from if you don’t want a short term loans bad credit lender. One alternative is the credit union – a financial established that is operated by its own members. This option is best when you need cheap short-terms loans the UK. Other options include payday loans, doorstep loans, or a logbook loan.
To start your application, you need to fill out an online platform with the necessary details, like your name, email address, bank account, and employment information. It only takes 5 minutes or less to complete this and once you’re done, you can submit it without faxing or scanning a document. A verification call will be conducted and once approved, the fund will be sent to your bank account.
Having a working bank account is important primarily because of the bank statement. Rather than based on the credit report, the lender will assess it to know whether they can entrust the loan to you or not. Your proof of income is also imperative because, through it, the lender will know if you’re really capable of repaying the loan.
Nevertheless, having a good credit report gives a number of benefits such as a higher loan amount, increased approval rate, and lower interest. So as a borrower, avoid bad credit scores at all cost.
Using Short Term Loans No Guarantor
Short-term loan providers are more considerate of their applicants. As long as you meet the basic criteria such as the age, residency, and proof of income, then you may be approved. There’s no need to show property or bring a cosigner, but you need to assure the lender that you can commit to their terms and conditions. Otherwise, you may suffer from repaying higher interest rates and charges, or worse, a court charge against you.
- You need to be at least 18 years old and above.
- You need to be a UK resident or citizen.
- You need to have a working bank account.
- You need to show a proof of income in the form of salary, benefits, alimony, or pension.
Short Term Loans: Is A Guarantor Required?
Many people who struggle with a bad credit score may turn to loans with guarantor; however, most short-term loans do not really require a guarantor. The amount offered is small and as long as you can settle the loan, there’s no need to involve another person.
Finding short-term loans without a guarantor is easy but learning from these tips to find the right lender won’t hurt.
- Shop And Compare
There are many lenders available in the market that you may end up feeling overwhelmed. But before you choose the first lender you see on the Internet, be sure to consider other companies, too. Check their rates, policies, and repayment option to know which one will work best for you.
- Call The Lender
While most websites contain all the basic details about the lender, it’s still best to know more about them. Create a list of your concerns and contact the lender to address it. Talking to the lender provides detailed, clearer answers and also, you can assess whether they provide a good customer service or not.
- Check Reviews
Popping on the first page of the search engine doesn’t necessarily mean that they are the best lenders. So how will you know if they’re worth dealing with? First is to research them and the second one is to read feedback. Find out what their clients have to say about them to know if they are transparent about their terms, if they have intimidating agents, or if they apply hidden charges. If the number of negative reviews is higher than the positive ones, then it’s best to look for another option.
With Bad Credit
5 most recent personal loan reviews
Very quick response and good safety features. Speak to real people once the application has been logged. Very simple to fill out. Would definitely recommend Funding Circle to anyone.
Review posted by Gary Craigs, Dumfries
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Really Great Service! Thoroughly recommend! Have dealt with several loan companies & Savvy is definitely the best, easiest, professional & they do exactly what they say unlike many other financial companies that lead you up the garden path!
Review posted by Helen Stern, Sheffield
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I have poor credit and really needed the money to pay a court fine or be up against the magistrate again. Really helped me out and I found the charges for the credit very reasonable. Would highly recommend if your in a pinch. Great customer service and went out of their way to help get the loan out the same night I applied. Started 6pm and had money in the bank before 10pm. Great service.
Review posted by Blake Harrington, Margate
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