Payday loans as their name suggests are to be repaid on your next pay day. Hence their tenure is usually between 7 and 30 days. However, nowadays it is possible to get a payday loan which can also be paid in several monthly instalments. The tenure of the loan depends on the amount of money which you borrow and the agreement between the borrower and the lender. Usually, these loans are very short-term loans and hence their rate of interest is very high. If however, you apply for the loan through a loan broker then you will be able to get a loan at a reasonable rate of interest.
What happens if you have bad credit?
You may well know that mainstream and high street lenders simply refuse to give loans to people who have bad credit. So if you are in a situation where you have bad credit and need a loan, you should approach a reputable loan broker. Such brokers make it easy for you to get payday loans for bad credit because they are associated with many specialist lenders who are ready to take a higher risk and provide loans to people with bad credit.
Why do lenders give loans to people with bad credit?
Usually, when a negative mark is placed on your credit report it stays there for at least 6 years. During that time, however, your financial situation may have improved a lot. First of all the bad credit may not even be your fault as in the current economic scenario, sudden layoffs and salary cuts are quite common. This is the reason that many people end up with bad credit when their carefully planned budgets go haywire. Most of the modern day specialist lenders realise this and hence are ready to provide a loan even to people who have bad credit. These lenders also provide other specialist loans like loans for unemployed and loans without a guarantor.
Can you get a loan without the credit check?
You may often see advertisements for payday loans no credit check, but beware the lenders advertising such loans may be loan sharks. Even some legitimate lenders advertise such loans, but what they actually mean is that they go soft on the credit checks. In fact, they take other factors such as your job stability, current monthly income and expenditure and other financial factors while approving the loan. The lenders are bound to conduct a credit check before providing a loan because this is the rule made by the Financial Control Authority of the UK. As per the regulations and guidelines of the FCA, it is mandatory for lenders to conduct a credit check of the loan applicant before providing a loan because the government does not want too many delinquent or bankrupt people. Such individuals cause harm to the economy of the country and that is why the government wants lenders to lend in a responsible manner. As mentioned above it is advisable to approach a good loan broker if you have bad credit and need a payday loan or any other kind of loan. This will protect you from loan sharks and other unscrupulous elements because the loan broker conduct a thorough check of the lender’s work ethics before forming a tie-up with them