If you need some extra money and are considering borrowing but have a poor credit report then you may think about bad credit payday loans. These are advertised quite regularly and do provide a way of borrowing money for anyone who does have a poor credit record. There are also some pretty scary alternative to bad credit payday loans such as using a loan shark or doing something illegal and so it is not surprising that people do consider them. However, it is worth asking yourself a number of questions before you agree to taking one out.
Representative Example: £400 borrowed for 90 days. Total amount repayable is £561.92 in 3 monthly instalments of £187.31. Interest charged is £161.92, interest rate 161.9% (variable). Representative 305.9% APR. We are a broker not a lender. We don't charge fees. We don't sell your personal information.
It is good to spend some time thinking about all of your options. Consider whether you have other choices and what they might be. Think about the cost of the different options as well as how good they are at addressing the problem and how stressful they might be for you. As well as thinking about the alternatives to payday loans, also think about the different payday loans that are available and whether there are differences between them and if so, which might be the best one for you to take out.
In order to expand your borrowing options, you may need to improve your credit rating. It is wise to periodically check your credit record anyway to make sure that everything on it is correct. If there are mistakes it might lead to you getting a worse credit rating than you actually deserve. You may also be able to identify the areas that you need to improve in order to improve your rating and it may be quite straightforward to be able to make those improvements. With a better credit rating you will be able to borrow from conventional lenders as well as taking out payday loans, where less credit checks are carried out, although they tend not to get the money to you as quickly.
It is always worth asking this question if you are considering a short term loan. All loans have a cost and although some are worth paying, such as in the case of mortgages and student loans, most are best avoided if possible. This is because you have to pay back more than you borrow and it can be difficult to find the money to repay it let alone the extra on top.
This is a really important question and should be considered really seriously. It is so important to make sure that you do not take out a loan knowing that you will struggle to repay it. When you miss repayments on any loan you will be charged for doing so. This means that you will end up owing even more money and struggle even more to pay it. This can not only put a lot of pressure on your finances but also on yourself causing a lot of stress.
Despite these questions making it seem like the loan will be a bad thing, there are many people that have been helped out by a payday loan. People who have been really struggling to find the money to pay a sudden bill or replace a broken item, might find the loan will enable them to pay for this item and they will then be able to repay it once they are paid. As long as the money is available to pay and it is possible to be frugal for the following month, then it could be a really useful thing.
So you will need to decide whether you think that the loan will be the right idea for you. This can be a difficult decision and it is worth taking some time to think about it. You need to consider many things and try to do so without rushing and getting stressed and emotional. This can be really tricky as when we are looking for a loan it is usually because we need money quickly and do not have the time to stop and think about it. It may help though if you discuss it with someone else and talk to them about the pros and cons.