Payday Loans for People with Bad Credit

It doesn’t take much to derail a household budget. Even a small spending emergency can throw the proverbial spanner into the works. But sudden expenses crop up everyday, and without a nest egg to fall back on it can be a struggle to meet the financial challenge. It’s at times like this when a small, quick cash loan would come in handy. Something to help smooth over the financial bumps and keep things rolling until your next pay cheque arrives.

But how can you secure the loan you need when your carrying a bad credit score? No need to worry. At Pounds to Pocket we specialise in providing short-term loans for people with poor credit histories. If you’re facing a sudden spending crisis, and you’re in need of payday loan to tide you over, we have the answer to your problems .

What are Payday Loans?

A payday loan is a type of short-term lending product designed to help bridge the gap between pay cheques. They provide the funds people need to cover sudden unforeseen expenses while they wait for their wages to catch up to their spending needs.

Traditionally, payday loans were high interest speciality lending products. They delivered modest sums to the borrower and were meant to be repaid in full out of the customer’s next wage packet. While this effectively gave borrower’s the money they needed in a crisis it could sometimes put a further strain on their personal budget. Today, payday loans are a little different and much more forgiving.

The Financial Conduct Authority has introduced new regulations governing unsecured loans and other short-term lending products. Payday loans now come with more flexible repayment periods, sometimes stretching over the course of a few months. This restructuring has helped to make payday loans more effective as a product and more affordable for borrowers.

How much would you like to borrow?

£
Representative Example: Rates from 12.9% APR to 1625.5% APR. The minimum Loan Term is 1 month. The maximum Loan Term is 36 months. Representative Example: £1,000 borrowed for 18 months. Repayment of 17 Months at £87.22 and final repayment of £87.70 The total amount repayable is £1570.44. Interest amounts to £570.44, an annual interest rate of 59.97%. Representative APR: 79.5% (variable).

What Can You do with a Payday Loan?

Payday loans, like other personal short-term lending products, can be used to cover a wide variety of common household expenses. While they are generally considered a form of short-term financial relief they are simply there to help borrowers cover gaps in their income. Household bills take no notice of payday schedules, and it’s not unusual to find yourself facing a bill that needs paying before your next pay cheque drops.

Payday loans are typically used to cover routine living expenses, such as:

  • Utility bills
  • Other loan/card repayments
  • Car repairs
  • Home repairs
  • Education costs
  • Rent / Mortgages

A payday loan is basically a stopgap. A fast influx of cash to get you through a spending shortfall and give you some breathing space until your next pay cheque arrives.

How Does Bad Credit Impact Payday Loans?

As a borrower your credit history is a record of your financial past. Lenders use it to assess your overall creditworthiness and to determine if you’re a safe risk for a small same day loan. Bad credit can be the result of a variety of factors, including:

  • A history of late or missed payments.
  • A history of overdrafts.
  • Defaults on past loans.
  • Excessive credit applications and denials.
  • Bankruptcies and County Court judgements.

A poor credit rating can also be the result of having little or no credit history at all. This is more common amongst younger borrowers who have yet to establish the kind of long-term financial record lenders want to see when assessing someone’s creditworthiness.

How Affordable are Payday Loans?

All loans come at a cost and payday loans are no different. There are some important points to consider before you apply for a payday loan. These will help you to decide if you can afford the loan you’re requesting.

  • Total Cost of the Loan – When approving a payday loan lenders consider the customer’s current income, employment status, and outstanding debts. This is in addition to the borrower’s credit score. This determines how much the direct lender is willing to borrow you and the terms/length of the loan. Remember, in addition to the sum you are borrowing you will be responsible for repaying all accrued interest. Review your income, debts, and direct debits to ensure that you can truly afford to take on even a small short-term loan.
  • Repayment Schedules – Payday loans no longer need to repaid out of the borrower’s next pay cheque, but they do need to be repaid quickly and on time. It is important to fully understand your repayment schedule and how it relates to your income stream. Remember, your scheduled payments will now be a part of your budget. Here at Pounds to Pocket we offer instant loan terms from 1 to 36 months.
  • Late or Missed Payments – Late or missed payments are to be avoided at all costs. These will not only cause a breech between you and the lender they will further damage your credit score making it even more difficult to secure a loan in the future. If you are worried you may miss a payment contact your lender immediately. They may be able to make arrangements to extend your loan so you can avoid a costly default. However, if you are granted an extension that will increase the cost of your loan. So tread carefully.

Why Use Pounds to Pocket

  • 24/7/365 Service
  • Same Day Cash
  • 98% Approval
  • Bad Credit OK
  • Fast Application
  • UK Based Lenders
  • Instant Decision
  • Quick Approval
  • Safe & Secure
  • Reputable Service
  • Direct UK Lenders
  • Benefits Accepted
  • Up to £5,000
  • 36 Month Loans
  • Trustworhy
  • Fair Treatment
  • Reponsible Lender
  • No Guarantors
  • No Paperwork
  • No Hidden Fees

How Hard is it to Apply for a Bad Credit Payday Loan?

At Pounds to Pocket we pride ourselves in helping borrowers with poor credit histories access the loans they need in an emergency. Our lending partners look beyond your credit score, considering your income and employment status, to determine if your eligibility for the loan you are requesting.

That being said no responsible lender will offer any loan without considering the applicant’s credit history. When you apply for your loan the lender will perform a soft credit check. This does not show up on your credit history and will not impact your credit rating. Once your loan is approved the lender will follow through with a hard credit check which will show up on your credit history.

The application process is simple and can be completed by filling in the online form. To start the application process we will need to collect some personal information. In order to qualify for a bad credit payday loan all applicants must meet the following requirements:

  • Applicant must be 18 years of age or older.
  • All applicants must be valid UK residents.
  • The applicant must provide a valid home address.
  • The applicant must have regular income via employment or benefits.
  • Applicants must have a UK current account.
  • All applicants must provide a valid e-mail address as well as other contact information.

In order to speed up the application process you should have all of your personal details at hand. Double check to make sure everything is current and accurate. Any mistakes in your application may delay your loan request.

If your payday loan is approved you should have access to your funds in as little as one business day. In most cases, the funds will be directly deposited directly to your bank account within a few hours.

How to Rehabilitate Your Credit Rating

If you have an adverse credit history a small short-term loan can actually help you rebuild your rating and improve your score. Every on time payment counts in your favour, and fully paying back even a small loan will add points to your credit score. A very bad credit payday loan can, in the long run, be benefit you long after your spending emergency has passed.

If you would like more information on managing your finances and improving your credit score we recommend the following government services. These resources are free to every UK resident and provide valuable financial advice and counseling: