Payday loans for bad credit borrowers
January 16, 2018
Being accepted for payday loans for bad credit borrowers may seem like an unlikely scenario, but this isn’t so rare. Lenders understand that customers with bad credit, still need financial help from time to time. Lenders also realise that, despite some having made previous financial mistakes, it may not always result in occurrence. You would be correct in saying, some lenders won’t entertain CCJs and debt against one’s name. However, there are a variety of lenders out there who will consider you. Every lender in the market has different requirements, in terms of who they will and will not accept for payday loans. Many customers mistakenly believe that, because one lender has refused them, all lenders would, too.
At Loanline, we work with a variety of lenders, and by doing so, we increase your chances of being accepted for a loan. This includes Payday Loans for Bad Credit borrowers, and those of you who are currently seeking work. As a minimum requirement, the lender will want to know whether you’re earning up to, and over, £500 a month.
Payday loans for unemployed
Being accepted for payday loans for people on benefits is a difficult task. However, some lenders are willing to consider it. Loanline will scour the market, contacting many different lenders instantly with your application. If accepted, you will be directed to the lender’s website, where they will complete the application.
Why will lenders still consider me for a payday loan?
Well, first of all, lenders recognise that people on benefits still have unforeseen emergencies that require cash. People on benefits also have a regular cash flow, despite it being a small pay-packet. Some lenders also view payday loans – for small amounts such as £100 for one month – as medium to low risk.
Dangers of payday loans for bad credit borrowers
Payday loans for people on benefits will usually result in higher APR. As a result of lending to borrowers on benefits, lenders will want to see a bigger return due to the risk involved. If you’re considering taking out a loan whilst unemployed, please be certain you can repay the loan, or you will most likely incur more charges and face cash problems in the future.
The difficulties of acquiring payday loans for bad credit borrowers
Acquiring a payday loan on benefits can be a difficult task, as many of you know. The task is difficult because lenders will deem you as ‘high risk’. Due to this, banks and payday lenders need to be sure that they will receive their money back with interest. If one lender does not accept your request, this does not mean that all lenders will have the same response. Loan Line will contact a wide variety of lenders at the same time with your details and redirect you if a lender accepts, saving you time, and possible money, too.
Checking your credit rating
If you’re not sure what your current credit score is, head over to Experian. Experian will ask you for a number of details and provide you with your score. There is no charge, however, if you want to know more details about your credit rating, this will come with a small monthly charge.
For more information, head on over to our bad credit advice page, with the option to apply today.