In this day and age more and more people require access to short term lending options. You will find lots of useful information about this type of loan below which we as reputable credit broker here at Omacl Loans, recommend that you read before applying for a bad credit payday loan. If you have any other questions or want more information, please give our friendly and helpful team a shout.
You can apply for a bad credit payday loan through us at any time of the day and if successful could have the funds in your account within the hour.
Rates from 49.9% APR to max 1333% APR. Minimum Loan Length is 1 month. Maximum Loan Length is 36 months. Representative Example: £250 borrowed for 30 days. Total amount repayable is £310.00. Interest charged is £60.00, annual interest rate of 292% (fixed). Representative 669.35% APR (variable).
Bad credit payday loans give funds direct to people with a poor credit history, an increased opportunity to get approved for short-term loans.
Traditionally, a payday loan was a very short-term loan, commonly whereby a small amount was loaned and paid off by the borrower on their next payday and is where the name of this type of loan derives from. The nature of the loan was to overcome a short term need for money, such as unexpected car repairs.
A payday loan nowadays can typically range from £100 to £5,000 over a repayment term of up to 36 months.
This type of loan will attract higher interest rates. However, the body that regulates behaviour within the financial sector in the UK, the Financial Conduct Authority (FCA), has set a limit on the maximum bad credit payday lenders can charge, both in terms of interest and any other associated costs. Trustworthy and reputable payday loan brokers, like Omacl, that offer bad credit payday loans will always work within such regulations.
A poor credit history can arise due to unpaid bills such as phone bills or missed payments on finance, by not being on the electoral roll, by not having any credit history, or even just by association such as a shared address with someone who has a bad credit history.
Your history with credit is electronically analysed to give a personal credit score. The lower your credit score is, the poorer your credit history is. Generally, all lenders will check your credit score before agreeing to a loan.
A person with bad credit will inevitably be considered at higher risk of defaulting on repayments than a person with a good credit history. A bad credit payday loan is charged at a higher rate of interest than a conventional bank loan, to offset the higher level of exposure to risk for the lender.
Therefore, this type of loan is considered high cost which you should take into account when considering applying for this type of loan.
As a responsible loan broker, we at Omacl advise you that as with any borrowing you should only consider applying for a bad credit Payday Loan if you are certain that you can afford the repayments and are in position to fully repay the loan and punctually.
You will need a regular income to apply for a bad credit payday loan.
You can apply for a payday loan by using a credit broker or by approaching a specific lender directly.
A credit broker has access to the majority of the lending market. By using a credit broker, you will enter your personal details and the amount you wish to borrow, and the repayment terms you are looking for, just once. The credit broker will scan the market and put forward options that not only meet your requirements, but also the loans with the best terms such as lowest interest rate. They will also be able to tell you how likely you are to be successful in your loan application.
With this method you apply directly to the company you are looking to borrow the money from.
A key issue arising from this method is that in most instances when applying for a bad credit payday loan through a direct lender, whether your application is successful or unsuccessful this will be recorded on your credit history. The more times you apply with different lenders, will result in a worsening credit score.
If you choose to go directly to a lender to apply for a bad credit loan, you should ensure that the company you are applying to, is registered with the FCA and do your homework such as checking out independent customer reviews.
At Omacl, we are here to help you during all stages of your application and have high levels of customer satisfaction. We do not charge any fees for our service. Not only is our application process easy to use and requires minimal information, but we will also be able to source competitive repayment terms, where your application is successful, due to our access to the larger lending market.
If successful in your application, from the point of your initial application to having the money in your bank can be less than one hour.
If you are unsuccessful, we have guides on how you can improve your credit score and history going forward.
In most cases, a loan application will require a credit search. The search will be recorded on your credit history whether accepted or declined. The more loans you apply for that are rejected will result in a negative impact on your credit report.
Again, this can be an advantage of applying via a respected credit broker such as Omacl as only one search will be recorded on your credit report.
This type of loan should be used for an emergency and you need to be sure that you can repay the loan comfortably and punctually.
If you are unsuccessful on this occasion, we have plenty of information on how you can improve your credit score and history including how to obtain a free credit report. Equally if you are successful and keep to the repayment schedule, this will help improve your credit rating and enable you to access alternative lending options at a lower cost in the future.
If you do have any questions or require more information, please do contact our friendly team here at Omacl and we will be happy to help you.