How to Find the Best Payday Lenders for Bad Credit
If you have a bad credit record then you might find it difficult to borrow money. However, you will have probably seen that there are payday lenders for bad credit and could think that this will be a great option for you. If you do need money and cannot get it elsewhere, then borrowing is a useful thing to be able to fall back on. However, finding payday lenders for bad credit may be quite tricky. It is really important to make sure that you compare lenders though, as otherwise you will not necessarily be getting the very best value for money from them.
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).
Your Credit Rating
The first thing that you need to be aware of is your credit rating. This is a measure of your financial history and it is something that lenders use to decide whether they wish to lend to you or not. Some lenders have more stringent conditions than others and this means that even if you are turned down by a bank for a personal loan, you may still be able to get other loans. With payday lending, although credit checks are carried out, you are more likely to be accepted as they are happier to take on riskier customers.
Make Sure Your Credit Record is Correct
However, before you take on a loan, it is a wise to make sure that your credit rating is correct. If it is not, then you could end up getting less favourable terms or being turned completely when it is not necessary. Therefore, check your credit record and make sure that everything on it is correct. Sometimes there will be errors such as it saying you have outstanding payments which you have cleared or things like this. It is wise to make sure everything is right so that your rating is calculated correctly. Some people also like to try to influence their credit record by changing their financial behaviour. Things such as earning more money, being employed instead of self-employed, paying off debts, making regular payments for bills and things like this will look positive and could improve the rating. However, if you need money quickly, there will be no time to make these changes, but there will be time to check the record and ensure all is correct.
Ensure You Do Not Make Your Credit Record Worse
One big problem with credit records is that every time you apply for a loan and get turned down it shows up. Then when you apply again that lender will see that you were recently turned down and may just turn you down as a result of that. If this happens a lot then it makes harder and harder for you to get a loan. Therefore, you really want to only apply for loans that you are confident you will be accepted for. This is why looking for a loan from a payday lender that accepts bad credit could benefit you. They are more likely to lend you the money which will not only help you with your financial problems but will not show up on your credit record as you being refused a loan.
Once you have looked at your credit record and checked it, you are in a position to see which lenders offer instant loans for bad credit. There are different ways that you can find lenders and it is a good idea to be aware of them and think about which might suit you or whether you want to use a combination of methods.
You can approach a lender directly and apply straight away, usually via their website. This is quick and easy, but depends on you knowing which lender you want to go with. It can be much better to compare lenders a little first to see what they are offering and which appeals most to you. You will be able to find a lot of lenders listed on search engines and you will be able to check out their websites and choose between them. However, this is time consuming and so you may decide to go to a comparison website instead but they have disadvantages in that they will only compare limited lenders and get commission on leads so may only list those which pay them generously. For speed you may decide to use a credit broker such as Boutell who will match your requirements to a lender. The method you choose may be determined by how much time you have available as well as which you think would be most appropriate to you.
Choosing the Right Lender
It can be hard though, to know what you are looking for in a good lender. Obviously, you will be looking for payday lenders for bad credit, but within this category there will be a lot of differences between lenders. You will find that you could get overwhelmed in knowing what factors you will need to consider when picking a lender. For many the cost could be the most important factor that comes to them and they might want to just use a price comparison website to find the cheapest one. However, it is wise to think carefully about whether this really is the only factor you are concerned about. Obviously, no one wants to pay more than necessary but there are reasons why some lenders might be cheaper than others and it is important to understand what these reasons are. It could be, for example, that they allow you to repay over a longer period and because you are borrowing for longer they are more expensive. However, because you repay less at a time, the repayments are easier to manage and you are less likely to miss a repayment and have to pay fees. It could be that they offer better customer service, they come more highly recommended or they are a more well-known lender. It is therefore worth thinking about whether you feel any of these factors is important to you and if they would affect your decision in who you might think will be the best to help you with it.
Ensuring You Get Value For Money
To get value for money form your lender does not mean that you go with the cheapest necessarily. You want to make sure that when you look at the payday lenders for bad credit, that you choose the one that you feel provides you with the best service for the money that you are paying. It can be useful to therefore put together a list of what you would like from a lender and then you will be able to match the lender to that.
There are few items as well as the cost which are worth considering. Repayments are something which are important. You will obviously have to repay the loan, but you need to think about which repayment method will be best for you. Some lenders may wat a lump sum, some may want a few payments and others may break repayments down into a large number, You will need to calculate how much you will be able to repay and then choose the lender that will expect you to pay that amount or less and this will hugely reduce the chances of you missing a repayment.
You may also feel that the reputation of the lender is important. This could be whether they are well-known, what others say about them and generally what their reputation is like. For a better-known lender, it is likely to be easier to find out about their reputation and to see reviews. A less well-known lender may be less talked about and therefore there may be less information about them. This can be a bit tricky because if they are not so well-known they may still be good or they may be striving to be extra good so that they can build up a reputation, but it is harder to trust them if you know less about them. Therefore, you will need to think about whether you want to take the risk or go with someone more well-known but that could potentially be more expensive.
It is hard to decide what to do but if you can prioritise what you feel is important in a lender and a loan then you will make it much easier. You will then be able to check whether the lenders you come across fit in with your requirements and choose the one that comes closest to them. It will take a while to do this, but it will be worth it when you find the best loan for you which will not only give you the amount of money that you need but will also allow you to go with a lender that you like and have repayments which suit you and that you are confident that you will be able to manage.