Bad Credit Payday Loans
Bad credit scores can be the result of monetary inefficiency. It can also result from a lack of borrowing history. Poor credit management can generally be an obstacle in the process of getting a payday loan. Poor credit results occur when loan and bill repayments have been missed or failed to go through. However, most of our applicants are looking to borrow because they are faced with an unexpected bill or unforeseen circumstance and need access to some extra funds to help make ends meet.
What is a Bad Credit Score?
Bad credit is on the basis of your credit score. An individual is viewed to have bad credit if their credit presents a history of late bill repayments or it shows them owing excessive amounts of money. The credit history you have will be based upon:
- Your credit utilisation
- Your income
- The affordability of what you’re asking for
- The length of time of your credit history
- Credit mix (if you’ve got a diverse portfolio of credit accounts)
Will Bad Credit impact my chances of a Loan?
You may still apply for a payday loan if you’re still in the process of working on your credit score. Our panel of lenders includes many that specialise in providing payday loans for bad credit in the UK. We understand that it doesn’t take much to damage your credit report, and we don’t believe you should be denied access to credit because of a past mistake.
Will I need a guarantor?
Some lenders will insist on a guarantor while others won’t. Having a low credit score doesn’t automatically mean you will need a guarantor. However, using a guarantor can make you a potentially lower risk to lenders. If one is required to secure the best deal for you, the lender will tell you. Most people ask a close friend or family member with a good credit score to act as a guarantor for them.
How could I improve my credit score?
Improving your credit can be vital because it can make your economic life easier and come in useful to save you money. While a bad credit history can limit your access to credit in the short term, there are things you can do to improve your credit file. Some of these things include consistently making your repayments in full and on time and making sure you repay any outstanding debts before obtaining more credit.
It can be easy to feel trapped in a spiral of debt if you are constantly borrowing money without seriously considering if you can afford the repayments. Remember that bad credit payday loans are not a form of income and should not be used as such. A good way to keep on top of your credit rating and to understand what you need to improve on is to get a free credit score.
Applying for Bad Credit Payday Loans
When you apply for a payday loan, your past history will be checked. However, your credit report is not the only factor used when applying for a loan. Other details are considered as well, such as your income and expenditure, or whether you rent or own your home.
If you do need extra cash, then why not apply at PM Loans today. If approved, you could receive your loan into your bank account in just a few hours!