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A Guide To Bad Credit Loans

A poor credit history or a low credit score does not have to stand in the way when you need a loan. Bad credit loans make it easy to obtain cash.

What Are Bad Credit Loans?

The most popular type of loan for people with poor credit is the payday loan. Payday loans are often known as cash advance loans, as you are actually borrowing against your next regular paycheck.

Because you are borrowing against income you will receive in the future, you are not required to have collateral or a cosigner. The loan is confidential between the lender and yourself.

Your credit is not taken into consideration when you apply for a loan. Instead, the lender may check consumer records to make sure you do not have any outstanding loans, and that you do not have a history of defaulting on loans.

How Do You Apply For A Loan?

While each lender has their own requirements, it is usually a simple process. You can visit a business that deals with payday loans, but the easiest approach is to apply online.

All you need to do to start the process is fill out a short application on the website. You will be asked to provide information to show you are eligible for a loan. This information includes your source of income, how much you are paid, and how often you receive your income. The application will also ask for your contact information, and information for your bank.

After you submit the application, you will be notified of whether you have been approved or denied. If you are approved for a loan, you will read and sign the loan contract. Read the contract thoroughly before you sign it. Depending on the lender’s policies, the cash should arrive in your bank account within a day or two.

How Do You Repay Bad Credit Loans?

Repaying a loan is as simple as obtaining it. The lender will deduct the correct amount from your bank account on the date specified in the contract. There is nothing you need to do, but you must be sure to have enough money in your account to cover it. You will owe the amount of the loan itself, plus the lender’s fee. The exact amount you will owe is stated in the contract.

How Can You Benefit From Cash Loans?

A loan can be useful when you need fast cash. When you want it to be a good experience, there are some important points to keep in mind.

First, do not borrow more than you can afford to repay. If you are tempted to borrow against your entire paycheck, you would be short on cash after the loan is repaid. Be reasonable with the amount you decide to borrow.

Second, avoid taking out more than one cash loan at a time. Although some lenders allow this practice, it could lead to financial difficulties. Make sure you do not have any outstanding payday loans before you apply.

Third, be responsible with repaying your loans. The loan should be repaid in full and on time. You can avoid late fees and legal problems, and prompt repayment can help you rebuild your credit.

Fourth, cash advance loans are not meant to be a habit. When they are used appropriately, loans are intended to be a short-term source of fast cash. While the lender will not ask what you need the money for, you should not take out a loan for trivial purposes. If you notice you are taking out loans frequently, or have trouble managing your money, consider talking to a credit counsellor. You can learn about money-management, and how to budget your income.

Bad credit loans can make a positive difference in your life. There are many ways you can benefit. Whether you have a bill that must be paid, or an unexpected situation that requires fast cash, you do not need to borrow from friends or relatives, or worry that your credit will prevent you from obtaining a loan through a bank.

With a payday loan, you can have the cash you need within a day. If you are responsible with borrowing and repaying, it will be a good experience.

7.8% APRC Representative

Representative example: Assumed borrowing of £37,700 over 180 months, with a fixed borrowing rate of 6.4% per annum for the first 36 months, followed by 144 months at the lenders standard variable borrowing rate of 5.9%. There would be 36 monthly instalments of £356.89 followed by 144 instalments of £347.59. Total amount payable £63,021 comprised of; loan amount (£37,700); interest (£21,791); Broker fee (£3000) Lender fee (£530). This would result in an overall cost of 7.8% APRC.

 

Accepted.co.uk is a trading style of Paloma Digital Limited. Paloma Digital Limited is an introducer and we will search our panel of brokers to find the right loan for you. Data Protection Registration Number: Z9868049.

Paloma Digital Limited is authorised and regulated by the Financial Conduct Authority. Firm registration number 769794. See www.fca.org.uk

THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT.

 

7.8% APRC Representative

Representative example: Assumed borrowing of £37,700 over 180 months, with a fixed borrowing rate of 6.4% per annum for the first 36 months, followed by 144 months at the lenders standard variable borrowing rate of 5.9%. There would be 36 monthly instalments of £356.89 followed by 144 instalments of £347.59. Total amount payable £63,021 comprised of; loan amount (£37,700); interest (£21,791); Broker fee (£3000) Lender fee (£530). This would result in an overall cost of 7.8% APRC.

Accepted.co.uk is a trading style of Paloma Digital Limited. Paloma Digital Limited is an introducer and we will search our panel of brokers to find the right loan for you. Data Protection Registration Number: Z9868049.

Paloma Digital Limited is authorised and regulated by the Financial Conduct Authority. Firm registration number 769794. See www.fca.org.uk

THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT.

IF YOU ARE THINKING OF CONSOLIDATING EXISTING BORROWING YOU SHOULD BE AWARE THAT YOU MAY BE EXTENDING THE TERMS OF THE DEBT AND INCREASING THE TOTAL AMOUNT YOU REPAY.

Paloma Digital Ltd. Company Registration No. 6934249. Registered Office: Office 229, 275 Deansgate, Manchester M3 4EL.