Payday Loans

Is Payday Loan an Alternative to Bad Credit?

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Bad credit score leads to financially lopsided days. No one wants to extend loans and those who do demand a hefty interest rate. Going directly to lenders risks your credit score further. There is always a risk of loan rejection and credit slip.

However, registered loan brokers can help you avail safe deals such as secured homeowner loans for bad credit. But sometimes, you need urgent loans and you do not know how to find a dependable deal. Before you knock the door of a lender for help, it is important to understand in depth about emergency loans like payday loans.

Payday loans are certainly hassle-free, quick credit solution for anyone who is looking for fast loans. But before you begin your search for payday loans for bad credit in the UK, know certain facts about these cash advance loans.

  1. Payday loans are very small cash loans which are not instalment loans. You need to repay the whole of the loan amount on your next salary day. So, beware of using payday loans if you do not have a backup plan to repay the liability within a few weeks. For, non-payment would attract high late payment charges.
  2. Generally, people apply for payday advance for £100 to £1,000. As per FCA £100 payday loan for 30 days would cost a maximum of £24 in the UK. The nation repayment can, however, attract high cost and APR%.
  3. Your past credit history doesn’t diminish your chances of availing a payday loan. With bad credit rating, you can successfully avail Bad credit payday loans.
  4. A lot of loan sharks are active in the UK. Contacting a lender directly for payday loans could be a risky affair. The onus of checking the credentials of lenders would be entirely upon you if you contact a lender directly. Always try to check the past record of the lender when you directly contact them.
  5. For searching a payday deal with complete peace of mind, contact a loan broker. When you contact an FCA registered loan broker you could rest assured of dealing with reliable lenders. They will search for personalised deals in the UK. The entire loan support is provided online. You can compare and choose the best match loan. Thus, it is easier to search a lender with the help of a loan broker.
  6. When you need rare loans such as payday loans for the unemployed, using the help of a professional and registered loan broker will come to your rescue. With poor credit and no job, finding a lender is close to impossible. However, the broker would help you establish your creditworthiness based on your past credit history. He can help you avail a payday loan if you are on benefits or have any other regular source of income.

All in all, you should analyse your credit situation before choosing a loan. A broker can help you make an informed decision.