Can You Really Lend With Bad Credit? And Should You?

US dollar bills

Image Source

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. However, you still have options – and we’re going to talk you through those options.


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 you 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. 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.


So why is this 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.

*this is a collaborative post

Leave a Reply

Your email address will not be published. Required fields are marked *

CommentLuv badge


This website will include affiliate links and referral links. That means sometimes if you click through to register or purchase an item, I get a commission or credit at no extra cost to you. Some products may have been sent to me in exchange for a review, I will state when this is the case and will always give my honest opinion on them. This website uses cookies, as almost all websites do to help provide you with the best possible experience, you can learn more about cookies here

Wotawoman Diary is a participant in the Amazon Services LLC Associates Program, an affiliate advertising program designed to provide a means for sites to earn advertising fees by advertising and linking to