Get Payday Loans in London Even with a Bad Credit Record

Payday loans are way different from the conventional bank loans. These loans are unsecured and are very expensive too. Hence, these are best borrowed when a financial emergency hits you suddenly, like major repairs in the house or a huge car repair bill. In such situations, bad credit payday loans London helps borrowers to get rid of the crisis, but at the cost of a very high interest rate. These loans are given for a time period of up to 4 weeks and are to be paid back in one instalment on the borrower’s next payday, which is where the payday loan gets its name from.

Why Payday Loans are So Loved?

Bad credit payday loans London are actually no less than a blessing in financial crisis, where the borrower will be able to free himself of sudden financial troubles quickly with these loans. But we must also not forget that payday loans come with a fair amount of risk associated with them.

The first obvious reason for the high risk is that high interest rate, which is very high as compared to other credit forms. So if the borrower is not financially stable, this loan is not at all for him, as he might end up in a larger debt.

But it is true that payday loans are so easily and readily available and do help you out from bad situations. These loans are a lifeline during situations when you need urgent cash and no other form of credit is working out for you. The payday lenders process bad credit payday loans London in a matter of just a few minutes without a lot of documentation and the process is transparent as well as straightforward.

What is the difference between payday loans and bank loans?

·         Payday loans are actually meant for shorter duration, and hence are short term loans, while bank loans are meant for larger periods of time.

·         Payday loans are meant for shorter amounts like 1000 pounds, while bank loans are meant for larger amounts.

·         Payday loans are meant to be paid back in one payment including the interest rate, while the bank loans are paid back in easy instalments.

·         Payday loans are unsecured and do not require a guarantor or a collateral. Bank loans require collaterals.

·         The rate of interest for payday loans is high due to their short term, while bank loans have very reasonable rates.

So how do you apply for a bad credit payday loan?

First of all, get your papers clear and all in one place, as you don’t want to go through the hassle of rummaging your documents to find the right one. You can get the list of the required documents from the lender’s website or by calling them. Then you need to fill-up the application, either at the lender’s branch or their website. After your application gets approved, the loan will get credited to your bank account within an hour mostly, though it can take a few more hours, which is very rare.

How are payday loans repaid?

Traditionally, borrowers were supposed to give the lender a post-dated check of the full loan amount plus the applicable interest rate. The lender would cash this check on the repayment date. But nowadays, the process has become easier. The lender takes down your debit card details at the time of application and then on the repayment date, the payable amount is automatically debited from your account by the lender.

What if I have a bad credit record?

A poor credit score might be a reason to worry about in case of bank loans. But in case of payday loans, it really isn’t a hindrance. The reason behind this is that payday loans are given only to steadily employed people. So on the repayment date, that is the payday of the borrower, the repayment will be done as soon as the pay check is credited into the borrower’s account. So the lender is not at loss. Hence, people with bad credit ratings too can apply for bad credit payday loans London and can get approved.

But there may be some exceptions. For example, you might be denied a payday loan if you have any outstanding loans which are yet to be repaid. You might also be denied a payday loan if you have defaulted on a high number of payday loans.

So make sure to borrow wisely and to repay on time.