Warning: Late repayments can cause you serious money problems. For help, go to moneyhelper.org.uk. We are a broker not a lender.
Warning: Late repayments can cause you serious money problems. For help, go to moneyhelper.org.uk. We are a broker not a lender.
Oct 1, 2019
Payday loans are a great option for those with bad credit. These microloans are usually available for 30 days or longer and help you avoid high interest rates on credit cards. You might also need one if your credit is bad or your credit score is too low.
Anyone with a low FICO score will find it difficult to secure a personal loan, including auto loans, pay day loans, and homeowners loans. Credit cards are also technically personal loans, although they are rarely classified alongside the aforementioned; the extension of credit is a personal loan.
Having a lot of credit card debt, paying bills late, and defaulting on debts lowers your score. But, having no credit, a short credit history, or very little credit is also bad. Although filing for Bankruptcy is supposed to be stricken from your record after several years, it actually stays with you forever, making attempts to secure loans in the future more difficult.
Luckily, payday loans do not check your credit score and are usually available to anyone with a job. Even better, those without a job can sometimes still get a loan by using their car title as collateral. Not all lenders provide title loans, but many do.
As the name suggests, pay day loans are short-term advances against a borrower's paycheck. Many people use the cash for everyday expenses, to pay rent and utilities, or to cover other monthly bills. You can also use short-term loans to lower your credit card debt, which improves your credit score.
Everyone needs a little financial help sometimes, but not everyone has good credit. Those of us with poor FICO scores can still get a payday loan.