Despite the fact that payday loans are one of the more unfamiliar types of loan products to many people, payday loan lenders may offer more loan opportunities for borrowers with bad credit than other types of traditional lender.
Payday loans are often given to borrowers with bad credit, with amounts often up to £80-£1000.
Payday loan basics
Often referred to as cash advance loans, or cash advances, this loan product is intended as a very brief cash fix when you are in an emergency situation. If an unexpected veterinary or repair bill comes about, or you fail to plan enough cash for your holiday, payday loans may be a way to cover yourself efficiently.
These lenders are sometimes more sympathetic to the needs of bad credit borrowers because the cash advance amounts are smaller and they are more concerned with your ability to repay the funds (plus any interest and fees) on your next payday.
Payday loan uses
Credit preservation may be one of the main motivations for people using cash advances in order to preserve their credit score, whether that have a less than perfect credit history or not. Delaying payment on unexpected bills beyond the payment deadline can lead to negative marks on your credit score. If the numbers all add up, it may be worth considering paying a cash advance fee and interest for quick cash versus being charged a late payment fee and getting marks against your credit history.
Application process
Applying for a cash advance loan is often relatively simple. You can complete an online application, get a quick review, and, if accepted, get your cash advance funded within a few hours. This efficiency is part of the nature of the payday loan. Its primary purpose is to help you in quick cash emergencies. Tedious and drawn out application processes do not work as well in this loan sector as they do in other traditional loan areas.
Getting a decision on your cash advance request is often fairly quick. Payday loan lenders will generally want to know that you have income to cover your loan and interest and any fees, so being in regular employment with a regular income will usually be essential. Funding may be dispersed to your bank account, giving you quick access.
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