A Complete Guide to Getting £300 Loans with Bad Credit
If you’ve run into a minor financial predicament that has you searching for a way to borrow £300 fast, you might be wondering what kind of credit score or other qualifications you’ll need to have to be approved. You’re probably also wondering what kind of loans you can apply for to obtain that amount as quickly as possible. Fortunately, in this guide, you’ll learn everything you need to know to obtain approval for quick loans in your area and through online lenders.
How much would you like to borrow?
Representative Example: Rates from 49.9% APR to max 1333% APR. Minimum Loan Length is 1 month. Maximum Loan Length is 36 months. Representative Example: £250 borrowed for 30 days. Total amount repayable is £310.00. Interest charged is £60.00, annual interest rate of 292% (fixed). Representative 669.35% APR (variable).
£300 Traditional Loans for Borrowers with Not-So-Bad Credit
If your credit isn’t necessarily good, but it’s not so bad either, you shouldn’t struggle to find an abundance of lenders who will give you a £300 personal loan with almost-instant approval. A traditional bank loan or line of credit issued to an individual who has a decent credit score will usually come with moderate-to-low interest rates, which is why they’re recommended first. However, keep in mind that these kinds of loans are more difficult to obtain approval for. Nonetheless, borrowing £300 is considered a petty amount, so even banks may approve you for this loan amount if your score is above 650. Still, if you’re reading this guide in search of a £300 loan, there’s a good chance that you don’t have good credit. If that’s the case, continue reading to learn how you can find these loans regardless of what your credit looks like.
£300 Payday Loans For Borrowers with Poor Credit
Most people who are trying to borrow £300 in a hurry will not have great credit, so this is the most widely applicable part of this guide. Payday loans are known to provide the best chances of approval for people with poor credit, so this would be the next option to resort to if you can’t obtain approval through a traditional lender or bank.
While payday loans come with higher interest rates, anyone who has a steady job and can show proof of income will usually be approved on the same day, especially for an amount as small as £300. In fact, payday loans are often the only option that borrowers with suboptimal credit have left.
So, if you know your credit isn’t great and you’ve already been denied credit cards or other sources of funding, you should probably skip all other methods and start comparing payday lenders first.
How Do Payday Loans Work?
A payday loan, as the name implies, lets you borrow an amount that is similar to the amount you expect to be paid on your next payday. The lender will give you the funds on the same day in most cases. There are usually a few different ways to receive your funds. If you apply for the loan at a physical location, you can ask for cash or ask that it be directly deposited into your bank account.
Some lenders will even give you the option of taking a prepaid card with the funds loaded on it. Keep in mind that your repayments will be deducted directly from your bank account on an auto-bill basis, so it’s important to make sure the necessary funds are available in the account on the due date, in order to avoid late fees and additional interest charges.
What Do You Need to Be Approved for a £300 Payday Loan?
Of course, since you’ll be agreeing to pay back the lender out of your next payday, this means that having a job or some source of provable income is a mandatory prerequisite. You’ll also need to show ID to prove that you’re a legal resident and over the age of 18.
As long as you can show these basic details, you stand a very good chance of being approved when you need cash now for an amount as low as £300. Generally, payday lenders just want to see that you’re capable of paying them back within the allotted repayment time frame.
You’ll also need to have a bank account that’s currently in good standing, as payday lenders will not let you borrow any money if they don’t have a way to auto-bill you for the repayments. As long as your account isn’t currently overdrawn and is considered to be “active” by your bank, the payday lender will be able to confirm that the account exists and is open. With that certification, your ID, and proof of income, almost any payday lender will approve you for a £300 loan.
With that said here are some of the reason why you might be denied for a £300 payday loan:
- Insufficient Proof of Income – If your job doesn’t pay a lot or pays you inconsistently, this could present a problem during your loan application.
- Inactive or Overdrawn Bank Account – Payday lenders won’t be able to see your exact bank account balance, but most of them do have systems that let them submit digital queries to determine whether an account is active and in good standing. Thus, you should make sure your account isn’t overdrawn by any amount before applying.
- High-Risk or Inconsistent Employment Type – If you’re self-employed, some lenders any request to see several months’ worth of bank statements rather than just a couple of weeks’ worth of cheque stubs. Generally, the more well-known your employer is and the more consistent your pay schedule is, the more likely it is that you’ll be approved.
- No ID Card, Driver’s Licence, or Passport – Payday lenders need to be able to verify your identity before they can approve you for any funding. If you don’t have a photo ID, you will struggle to find any reputable lender willing to give you a loan.
As long as you heed the advice given above and meet the income requirements for the loan amount you’re applying for, which won’t be too strict for a £300 loan, you should have no problem getting the majority of payday lenders to approve you within a few minutes.
How Long Does it Take for You to Receive a Payday Loan?
While the exact funding time will vary depending according to the lender, in most cases it happens the same day or even within the same hour that you apply. If you opt for a bank transfer as the funding method, it may take 1-3 business days for the funds to post in your account’s available balance. If you apply in person at a physical location, you can usually walk out with the cash as soon as you’re approved.
Some slower payday lenders may have a backlog of applications to go through, so there may be a 1-2 days processing time before your application is even considered. Ultimately, you can have the money in your hands in as little as a few minutes or as long as 3-4 days from the date of your application. For that reason, it’s important to be selective about the payday lender that you choose, as you don’t want to wind up waiting a few days for your money unnecessarily.
Can You Take Out Multiple £300 Loans at the Same Time?
Taking out several loans with different payday lenders on the same day is a practice known as loan stacking and is generally inadvisable due to the excessive debt burden it creates. While it is certainly possible to be approved for multiple £300 loans, to avoid serious financial consequences you should only ever borrow an amount that you know you’ll be able to pay back.
Taking out many loans or borrowing an excessive amount with no intention of actually paying back the money might be considered fraudulent and is definitely financially irresponsible at the least. Luckily, most people have no problem paying back one or two £300 loans. Taking out three or more loans at the same time is never a good idea because it will only worsen your credit situation.
What Should You Look for in a Lender When Comparing Personal Loans
Comparing bad credit loans with no credit check is usually a very straightforward and simple process. Many borrowers who are looking for a £300 loan won’t be too picky about who approves them, but taking your time and choosing the right lender could make the entire experience much easier and faster. With that said, here are a few factors you’ll want to consider when comparing prospective payday lenders:
- Reputation – Search for reviews about a lender before you trust them with your personal details.
- Funding Options – Ask them what kind of options they have for transferring or loading the funds. Some lenders have physical locations that will let you pick up the money in cash while others can do instant debit card transfers to give you the convenience of not leaving your home.
- Available Loan Amounts – Most payday lenders offer loan amounts ranging from £100 to £2,500.
- Speed of Transfer – Be sure to check out their website or ask a support representative to find out how long it usually takes for borrowers to receive their funds.
When taking the above factors into consideration, you should be able to find a reputable and convenient payday lender that will let you borrow £300 today.