Many people are not blessed with an excellent credit score. It happens sometimes, that you canceled your direct debit by mistake, forget to repay some less value payment on a given time, or for some emergencies. There are many such incidents happen where people need urgent fund to get relief from their problems. But poor credit score rise problem to get instant loan. You don’t have to anxious because nowadays many FinTech companies provide guaranteed payday loans for bad credit people.
These online lenders believe in providing you a loan without any credit check. Now, you might be thinking that what is no credit check loan, is it the right way forward to your financial condition?
In mediocre words, your credit file will be untouched by the lender but it may happen they go with a soft credit check; it depends on the company you are applying. You will get a small amount for a small period.
What are Payday Loans?
This is also known as payday advance. Anyone over 18 with a stable income source can apply it for instant help. You will get cash within 15 minutes once you get approval. You can search for FinTech companies who provide these small loans with affordable interest rates.
What makes payday loans with no credit check different?
If you apply for a standard loan, the loan provider will check your credit history first and if they find positive then you will get approval. They get these credit reports from credit reference agencies in the UK, such as Experian and Equifax. Lender analyses how you handle your credit in past. And companies believe that if you were able to handle your credit in the past then you can manage your credit in the future too. Poor credit means you may be rejected, if applied from mainstream lenders.
There are many reasons where the borrower fails to manage loans which push down his/her credit score. And to help you there are many online lenders ready to provide a loan without a credit check. You can easily get a small amount for satisfying your short term needs. One among them is salary day loan; you will get prompt cash from lender easily and quickly.
Several Types of Payday loans
Many lending agencies provide affordable loan deals on instant approval. Let’s have a look at most popular loan types:
Bad Credit Payday loans
The term ‘bad credit’ shows that you fail to manage your previous loan or failure to make payments. And agencies consider this as a risk. Though many online lenders provide pounds without any credit check. If you are cash strapped then bad credit payday loans are a perfect way to improve your situation. Numerous small loan lenders are present in the UK, who will not only approve your application despite having bad credit but they provide loans without any guarantor too.
Online Payday loans
This loan is repaid on the same day when you will get your monthly salary. This loan takes less than 2 minutes to get approval. These credits are small and flexible, and specially designed to resolve short term cash-flow problems. The repayment time depends on how frequently you get paid it may vary from 14 to 28 days. And in some cases, the lender may extend the date according to the borrower’s situation.
Things to consider before applying for payday loans
You should remember a few important points before you go for these loans:
Decide the purpose of a loan: It is very important to decide the reason behind getting the loan. It must have some purpose; if you borrow money and fail to use in an efficient way then you may have to face the adverse effect of it. Make sure, you use those funds to make your condition better.
Take time to know about the terms and conditions of a loan: You should borrow only that much of amount, you can repay easily. If you borrow a large amount and then you fail to repay on schedule time then it will affect your credit score.
Rate of Interest: Providing an affordable interest rate is a good thing but it depends on time. If you find interest rate reasonable compared to loan term then you should go for it.