Bad Credit

Should I Bother to Consider Loans for Bad Credit?

There are many loan options available and there are sometimes certain types of loan which we just tend to dismiss and feel are not for us. Bad credit loans can often be in this category for people who have a good credit record. They may feel that the loans are just not for them and so totally ignore them when choosing the best loan for them. However, it is important to make sure that you consider all loans when you are researching which to take out and that you are aware of everything that is available so that you are able to make sure that you really are picking the best loan for your situation.

You May End up with Bad Credit

It is easy to assume that we will never need a bad credit loan because we will always have a good credit score. However, it can be easier than you think to get a score that is not acceptable for various reasons. If you miss a few payments on a bill, lose your job or have to give up work, then this could have a very quick impact on your credit score and could mean that you suddenly find that you are not able to easily borrow money. It is not a situation anyone wants to be in, but sadly there are many people that do end up in it and this means that they will have to look for a bad credit loan if they do need to borrow money. Therefore, it is good to be prepared just in case this happens to you. Just knowing what your borrowing options will be and how they work can be really useful if you do find yourself in difficulties and needing to get some money really quickly.

You May Need Some Money Quickly

It is possible that you might need money in a hurry and find that there are only a few loans that can offer this. If you have already got an arranged overdraft or credit card, then you will be able to use these to get money quickly but any other sort of loan will need to be arranged and it could take quite a long time. Some could take days and others weeks, which will be too slow if you have a genuine emergency that needs dealing with very quickly. Therefore, if you do need money really quickly then this could be a good way to get it. This is because bad credit loans were set up to help people in emergencies and therefore, they will be set up really quickly. It can take a little as a few hours from the time you apply to the money appearing in your bank account and this means that you should have the money that you need on time.

You May Want to Repay Quickly

With a bad credit loan you will normally need to repay it really quickly. You will tend to have to repay the whole loan in full, plus the charges on the next day that you are paid. This means that you will be clear of the loan in a few weeks or even a few days. This can be extremely attractive to people that do not like being in debt for very long and therefore want it all paid off quickly.

So, you can see that even if you do not have a bad credit record now it could be handy for you to know about bad credit loans for the future. You also need to have a think about whether there might be other features of bad credit loans which could be useful to you, even if you do not have bad credit, such as being able to get money really quickly.

Urgent Loans

How Quick are Urgent Loans?

If you need money urgently and the only way that you can get it is through borrowing, then you will find that the time that it takes to get the money will vary. For some lenders it could take weeks to arrange a loan and this is very unlikely to be quick enough. If you have an emergency then you may want the money much more quickly. There are urgent loans where you will be able to get the money quickly as well as a few other fast borrowing options for you.

Options

If you already have some types of lending organised then you will have instant access to that money. For example, if you have a credit card, then you will be able to use that whenever you wish as long as you have not used up the credit limit on it. However, you will be limited in what you can use it for as not everyone will accept payment by card. If you need cash then you will be charged interest as soon as you withdraw the money, which can be expensive. You may have an overdraft, which can be a more flexible way of borrowing. You will be able to transfer money, draw out cash or write a cheque and get the money that way. It is more expensive than a credit card generally though. There will also be a limit to how much you will be allowed to borrow. Both of these options also need to have been arranged beforehand in order to be cheap.

There is an alternative option though and this is an urgent loan. This is something which not everyone will immediately think of but it could be really useful and is worth thinking about.

Speed of Urgent Loans

An urgent loan can be arranged very quickly, but it will depend on the lender as to how fast it is. Some lenders will be able to get you the money within a few hours and this should be fast enough for most people. Some lenders will take a bit longer though and it therefore a good idea to make sure that you check this before you take out a loan with them, especially if your need is extremely urgent. It is also wise to consider that there are things that you might need to do to make sure that you do not slow down the process such as completing the application form fully and providing all of the required documentation. It is easy to rush when you need something fast and then you can make mistakes so try to approach the application methodically and do not make silly mistakes.

It is also wise to make sure that you compare a few lenders to see which you think will provide you with the best value for money. Obviously, you will be in a hurry, but you do not want to regret your decision, once you have applied and realised how much it will cost you. You will find that the lenders will vary in price as well as other features and you want to make sure that you compare them and think about what else is important to you as well as the speed of the loan so that you get what you need as well as getting the money quickly. Think about factors such as how much money you need, how long you need it for, how much you can afford to repay and when just as a starting point. It can be easy to be a panic if you do need money fast and not really think all of this through and so if this is the case for you it could be a good idea to get someone else to help you to go through it all.

Emergency Loans

Can I Get Emergency Loans?

If you need some money and you have decided that borrowing will be the best option for you, then you will need to look into all of the loan options that are available for you. Different options will be available to different people and so you will need to know what is acceptable with regards to this. If you are not familiar with the loan type, then you may have no idea of who might be accepted for this sort of loan.

Legal Requirements and Restrictions

It is necessary for any UK borrower to be aged 18 years or older to comply with the law. An emergency lender will also want the borrowers to be UK residents and have a UK bank account. These are the main rules for borrowing money but each lender will have other regulations which are specific to them with regards to borrowing money from them. However, emergency lenders will tend to only have these rules.

Credit Check

Many lenders will require a credit check is done before a person is considered for lending. This will be a specific check to see details of their finances. Anyone can look at their own credit report and it can be a good idea to do this so that you know where you stand with regards to your credit status. If you keep up with lots of regular payments, such as rent or utilities, have always repaid loans on time and have a regular income, then chances are that you will get a decent credit score. However, if you do not has a good status on one of these things, perhaps having debt problems in the past, not keeping up with electricity payments or not having a regular income could mean that you will not do well when it comes to the credit check and will need to consider a loan where credit record is not so important, such as an emergency loan.

Is it Suitable

You may feel that the emergency loan will therefore be the right option for you. However, it is wise to make sure that you find out more details about it before you go for it as it is different to more traditional loan types and you will need to be aware of those differences so that you can plan properly. For example, you will normally only be able to borrow between £100 and £1,000 which may not be enough money for some purposes. Also, some lenders will only let you have a few hundred pounds as they will want to make sure that you are capable of repaying the loan before they lend you large amounts of money. As they do not base whether they lend to you on your credit record they build up trust in a different way and therefore check to see if the borrower is capable of repaying smaller amounts before trusting them with larger ones.

The loan also normally has to be repaid in one lump sum on the day that the borrower is paid. Although this means that they have a bigger chance of being able to repay it, it can be difficult because it means that there may then not be much money left to pay for everything else that they need to buy. So, it is extremely important to make sure that you are confident that you will be able to not only afford to repay the loan but also manage everything else that you will need to pay for as well. It is well worth doing some calculations to check this out carefully so that you can be totally sure beforehand.

Online Loans

Should I Use Online Loans?

When you are considering using online loans, you should use the same criteria to judge as you would for any other type of loan. You will find that there are a few main things that you should think about and these will help you to be able to make up your mind more easily.

Do I Need the Loan?

It is good to start by asking yourself whether you really need the loan or if you can manage without it. Sometimes loans can be extremely useful, perhaps helping us to improve our future financially or to help us out in an emergency. However, sometimes people take them out to buy luxury items that perhaps it could be better to do without. Also, it might be the case that we have savings that we could use instead or that we could spend some time saving up for the item rather than borrowing the money. It can be a really good idea to think about this before taking out the loan because of the cost of having one.

Am I Happy With the Cost?

It is wise to find out exactly how much the loan will cost and this will allow you to decide whether you think that it will give you good value for money. You will find that the cost of the loans does vary and this will mean that you will need to find out how much it is and then think about whether you are happy with paying this much money. You will not be able to guess how much they will cost but you will need to work it out. It is a good idea to make sure that you do this carefully. It can be easy to look at the interest rate and perhaps do a rough calculation to see how much it will be. However, this may be inaccurate and there may be more to pay than just the interest. Therefore, you should consider asking the lender how much it will cost so that you get an accurate figure. You may be able to find a calculator on the website of the lender to be able to work it out, which might be easier. Once you have an accurate cost then you will need to have a think about whether you are happy with paying this much money for the loan.

Can I Afford the Repayments?

It is also really important to think about the repayments for the loan. You should find out how much you will have to repay and when so that you can calculate whether you will be able to afford this. You will often find that with an online loan you will need to make the repayment in one lump sum on the next day that you are paid. This should mean that you will have the money available to pay it because of your salary arriving in the account, but it is wise to check just in case. You will need to make sure that you will have enough money to not only repay the loan, but to also pay for everything else that you will need to buy. This could include things like your rent or mortgage, utilities, contracts, council tax, insurance, food and travel to work. We all have commitments that we have to pay for and this means that it is a wise idea to make sure that you will be able to afford them. If you will not, then it is better not to get the loan out, because you could have extra charges for those things or you may even be cut off or evicted.

Payday Loans

What are Payday Loans?

There are lots of people that are still not really familiar with what payday loans are. We have lots of different loans available to us and it can be confusing knowing what the main differences are between them. This is something which is important though because we need to think about this when we need a loan. It is really important to make sure that we pick the very best loan for the us, when we are choosing between them. This is because it can make a big difference in how much we pay for the loan and whether it provides us with good value for money. We can check when we apply, but often we are in a hurry and so it is a good idea to have a good understanding of the different loans and how they work so that it is easier for us to make the decision when we need to.

Main Features of a Payday Loan

It is wise to know what the main features of a payday loan are which make it different to other loans and then you will be able to choose whether you think it will suit your needs. There are a few things which stand out. The first is that a payday lender does not consider your credit score when they are deciding whether to lend you money or not. The lender will do a credit check, but they will not mind if you have a poor credit record. The loans were actually set up to specifically help people who have a poor credit record and therefore they are ideal for anyone in this situation. The loans were also designed to be for emergencies. This means that they are usually arranged very quickly so you can get the money fast. With some lenders this can be done within a few hours but other may take longer and you will need to check this out to see for yourself. It is also worth noting that there will be some lenders that will work outside of normal banking hours and you will be able to borrow money form them evenings and weekends, which could be handy. Lastly, you need to be aware that you will be lent smaller amounts of money usually between £100 and £1,000. You will find that this means that the loan will be easier to repay as you have borrowed less but if you need massive amounts of money they will not be suitable for you. The money will need to be repaid in a lump sum on the day that you are paid which means that you will need to be confident that you will be able to manage this amount.

When to Use it

So therefore a payday loan is not really for general use. However, if you need to borrow relatively small amount of money in an emergency then they can be handy particularly if you have a poor credit record and cannot get money elsewhere. They can also be handy if you need money outside of normal banking hours or want a loan that you can repay really quickly, so that you are not in debt for very long. With all loans though, it is important to make sure that borrowing is the right option for you and you should check to make sure that this particular type of loan will suit you the best. Then you will need to also compare the different lenders offering this type of loan to make sure that you are using the one that is offering you the best value for money.