Loans For Bad Credit – Friend or Foe?

A payday loan is one of the most common and popular types of loan currently on the market. A short-term loan that is an advance on your next payday, payday loans come in handy whenever you face an unexpected expense or bill and it is only midway through your pay period.

One of a variety of bad credit loans available within the UK, find out more by visiting http://allcreditloans.net for information about options including poor credit loans.

Are There Different Types of Bad Credit Loan Available?

The real difference between an ordinary loan and a bad credit payday loan is that typically the lender will not conduct a credit check if you apply for a bad credit payday loan. Applying for a bad credit payday loan informs the lender right away that your credit is not so good therefore, no credit check is necessary as there is nothing to hide.

Some types of loan receive a lot more attention through the press than others, for more information on this, please check out the following article - http://www.independent.co.uk/money/loans-credit/the-dangerous-lure-of-payday-loans-in-disguise-6278545.html

Channel 4 also recently conducted an in-depth analysis of payday loans and what they entail, please check out the following video to see what they found.

What is the Application Process?

A bad credit payday loan does not have any legal restrictions, which means that you can do as you

please with the cash you borrow. However, you must meet certain minimal requirements before the lender can give you the money.

You must be over the age of 18 when applying and must be a valid citizen. You will also need to provide proof of stable employment, minimum income, as well as a checking account with direct deposit that is not currently overdrawn.

Typically, the amount of money you can borrow with a bad credit payday loan will vary from around £100 to £1,000.The income and employment information you provide will determine the loan amount that you qualify for. The lender will review your application and determine whether to award you the loan as well as the amount.

Are There Likely to be Fees Involved?

Fees for obtaining bad credit loans vary from lender to lender and from client to client depending on

the loan amount requested as well as the income level. Ensure that you read the terms associated with any payday loan carefully. On average, bad credit payday loans attract fees of £15 for every £100 borrowed.

A payday loan is normally due within 14 days or when you get your next pay cheque but may extend to 21 to 28 days depending on the lender. Typically, a loan with a higher repayment period attracts higher fees. Most states do not allow having multiple payday loans outstanding or increasing loan amounts. Lenders usually process the loans for bad credit on the same day and you receive the money as soon as the next business day.

In conclusion, as highlighted in this article, bad credit loans are just like regular payday loans. The difference comes in the fact that with bad credit loans the lender never does any background credit checks. It is hoped that this article has shed some light on what bad credit payday loans are as well as how to go about getting one.

For more information relating to loans for bad credit, please return to our homepage.