Borrowing with bad credit is still an option for most people. But should you?

Many payday loan lenders will try to convince you that your credit will never be an issue. However, under regulations introduced in 2015, it’s not possible to do this anymore.

It is now the responsibility of the lender to perform checks to ensure that the borrower can afford to pay back the loan.

You could always try and improve your credit score before you make any new loan applications. Your score doesn’t just improve overnight it takes time so it’s important to plan ahead. However, you still have options – and we’re going to talk you through those options.

Borrowing With Bad Credit

Do Good Payday Loans For Bad Credit Exist?

There is no doubt that some lenders are less concerned with checks than others; but does this mean that good payday loans for bad credit exist? Undoubtedly, payday loan lenders for bad credit do exist – however, there’s very little good about them.

Recent statistics from the Office of Fair Trading showed that approximately 30% of people who borrow money don’t pay their payday loans back on the date agreed upon. This meant that they were ‘rolling over’ their loan – borrowing the same amount of money again and paying off the interest.

Doing this over and over again can lead people into a cycle of debt. This is why a payday loan should be taken as something you fully intend to pay back on time. 

They should only be used for dealing with unexpected bills; and are, most definitely, not suited to being used for buying clothes or for going on a night out with your friends.

Otherwise, you will also end up falling into a debt cycle.

If you’re in full-time employment but are only paid minimum wage, a payday loan may not be for you. If you’re rejected, some of these sites will – without your permission – sell your details to innumerable other sources.

You may find yourself flooded with offers for payday loans! However, there are other options at your disposal as opposed to going with payday loans for bad credit.

It is likely that any lender claiming to sell cheap payday loans for bad credit will try to make up for the cheap loans by charging you in other ways – most likely through some sort of fee or by selling your details to multiple third parties.

Lend With Bad Credit

Instead of going with a direct lender for bad credit payday loans, you should consider a different type of loan.

One such option is a short-term instalment loan. Instead of paying back on payday, you pay the loan back, with interest, in monthly payments lasting for either three, five or six months.

This is one of the newer and more flexible payday loans.

Why would this be better?

Well, it’s better because you aren’t faced with paying back the whole debt in one go. This means you can map out your finances over the next few months to accommodate the debt into your budget.

So instead of having to forego any of your hobbies or luxuries for a whole month, as with a traditional payday loan, you’ll probably be able to manage on your current budget while still paying it back.

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