Where Can I Get A Loan If I Have Poor Credit?
This seems to be an age old question up there with which came first, the chicken or the egg, but it is one many people ask and experience. Just because someone has poor credit in the past, or maybe even no credit, does not mean they may not need a loan of some sort at some point.
So what to do??
Starting at the bottom of rebuilding your credit is a start. Opening a current account, and possibly a savings account, making a regular pattern of saving and also paying what bills you currently have in a timely manner. But this can and does take time. So if while doing this you need a loan and are continually denied, you could consider looking into a payday loan.
Payday loans are short-term loans of whatever amount you may need to hold you over until your next payday. As long as you are working, and have a bank account, in most instances, you will be approved and can have the money in your account within hours. It doesn’t get any easier then that. Plus, having poor credit is not an issue. As long as you are working and have a bank account, you can be approved. So while it is good to do all the right things to improve your credit and credit score, there is a way to get the cash you need, if you need it, and need it quickly. A payday loan.
Code Of Practice For Payday Loans To Be Introduced
From what I saw today on the Guardian companies that offer short-term, unsecured loans at higher than usual interest rates, may be subject to tougher regulation by the government.
Is Big Brother helping us once again???
But seriously, there has been some pressure on the government to look closer at these types of loans, and I wonder why??
I’ll tell you why, because they are more popular now, and are needed now, by those that cannot get credit elsewhere.
Back in America many years ago, there was a cry out about what they called ‘store front lenders’. These were shops, that made unsecured high risk loans to people at a higher than usual interest rate. And they were criticised for their practices.
Unfortunately, there are always a few ‘bad apples’ but there is now a need for these types of loans. Or if in the business, this product. Let’s remove ourselves from the state of it all.
Anyway, pressures over the activities of various companies providing payday loans has led the PM, or Prime Minister to us all, to say that a ‘code of practice’ to protect vulnerable borrows, will be introduced. So once again the government sees that we cannot manage ourselves, and may/possibly, see a way to get to regulate something; which to me means try to get in on the action. Charge a fee of their own. Sure they’ll make sure the companies involved are forthright, solid, etc, but also there will be a government, bureaucraticness to it. Or a licence fee.
Sorry mid-life cynicism slipping in.
Payday loans are short-term loans to carry someone over until their next payday. Hence the name payday loan, duhhh.
The government stated they want to look at interest rates, and possible caps, and all that goes with this; is there full disclosure, then if there is and people know the risk, costs, why the worry.
But the government needs to be careful not to overstep their boundaries. The government acknowledges if they do this they will drive people, vulnerable people, who these types of loans can help, drive them to what they turn more unscrupulous lenders.
That seems to lend a negative vibe to the payday lenders, but they are providing a necessary service. If not, then the number of people who use them would not be on the rise; as mentioned in the BBC News in a poll conducted by R3.
There was speak of the government looking into this and making a cap in place for rates and the such by Christmas, I only wish they could resolve so many other pressing matters just as quick!
UK Bank Overdraft Charges
Many of us have overdrafts attached to our chequing accounts, and we all know the issues that can arise if we hit that overdraft. Our wages go in and they are sucked up by paying back the overdraft, and also any fees the bank may charge for using the overdraft.
A few years back the banks got into trouble for the charges they placed on people’s accounts; charges of £35 for sending a letter out stating you were overdrawn, or whatever. Those fees were challenged by the OFT and by others, but in the end the banks won. For now.
But one ‘charge’ or fee that banks charge and is quite a bit steep, is the interest rates on if you go over your overdraft limit. The cost just for using the overdraft can be bad enough, but go over your limit and look out!
An example I read was where a customer of Santander who borrows £100 for 28 days, without the consent of the bank, meaning they go over their limit, would repay £200! That is an APR, or annualised percentage rate of 819,100%!!
Whoaaaa, that is a bit steep.
Now one reason why the interest rate seems so high is that it is an APR, that is then applied to such a short-term, in this example 28 days.
It makes looking into a payday loan or some other quick cash loan a better option then going over your limit. With some payday loans to borrow £100 for 28 days the charges would be £42. Which as we all can see is much less then the bank’s charges.
Now the banks say making such a comparison is unfair as a payday loan is an authorised loan, whereas going over your limit is not approved, or authorised; it is just a service or benefit the bank is providing. And providing at quite a cost I say.
This really is part in parcel with all the other charges bank have and have been charging people. If someone has a returned direct debit, meaning the debit is not paid, the bank will charge for this; so not only do you not have any money in your account, but you are now in debt to the bank for their charges. And these charges can add up.
One customer of Natwest accrued an astounding £775 in charges for an unpaid direct debit of £6.99! That should be a crime.
I can understand the banks charging a fee or something for their services, but that is robbery, and forces people into debt.
There should be a maximum amount that can be charged, and it needs to be realistic if the bank is ever to get it paid to them, instead of forcing customers to go elsewhere for their banking needs and being kept in debt.
Financial Planning Ahead
If you suffer from poor credit and have experienced financial difficulties in the past, or just seem to be prone to emergencies cropping up at always the worst moment, maybe a bit of planning ahead may help.
Of course setting up a savings plan and putting money away regularly will help, and is the best course of action. Planning for that rainy day, because it does rain a bit here in England.
You could also look into doing some research now on payday lenders to get yourself in the know about what is involved, and which may be the best lender for you to use.
It is just a part of planning for anything that may crop up.
If your employer allows you set up an additional account for money to be paid into, you can do this to set-up a savings account, or you can have a regular transfer from your wages and chequing account directly into a savings account. You can discuss this with your bank as to which type of account is best for you. Some require an initial large deposit or minimum balance to keep them going. Finding just a basic savings account that you can put even if it’s only £5 or 10 a month towards is a start.
Also getting to know what payday lenders there are available and what is required of you, should you need this type of fast, quick loan.
This way, should you find yourself in the tight financial spot we have all come to experience from time-to-time, you have your bases covered.
How To Get From A To Payday
For many people they sometimes find themselves with more month then money; their wages are not going to get them to the end of the month. And they still have expenses to cover, it may be petrol for the car to get to work, food, it can be a number of things.
Then there also are life’s little surprises, like a car needing a new tire, or a car not quite passing the MOT, or any of life’s little emergencies. How can you get from point A to payday without passing Go and collecting your money??
A payday loan, that is how.
A payday loan is a quick, simple short-term loan that you payback on your next payday.
And the loan can be used for anything you need or want.
As long as you are working and have a bank account, you can have the money in your account in some instances within an hour or so.
One question that is frequently asked is what if I have bad credit? Bad or poor credit is not a problem with a payday loan. Again, as long as you are working and have a bank account, most lenders will approve you.
So this can help people get through their month, or be able to cover any little incidentals or emergencies that may arise.
Alternative Lending Schemes
For people with poor credit who may need a lend, borrow or loan, trying banks and familiar institutions may have them turn up empty handed.
While having poor credit may not exclude you from being the recipient of a loan, you can bet it is going to have some impact on it.
Need a Loan Fast?
Back in the days of old, if you needed to get a loan you went to your local banker/bank, submitted an application for a loan, waited for the loan committee to meet and make their decision, and then you would be granted or not granted the loan. This may take weeks.
If you go back even further though, you went to the bank, the banker knew you or your family, you rarely submitted an application as lending was done many times on a handshake, and then and there the banker gave you you loan.
So times did change, getting loans was easy and quick (but also high risk), then it took forever and was time consuming, to now where it is quick again.
Many moons ago when I was in the mortgage industry it was taking anywhere from 30-60 days for people to get approved for a mortgage. Then some mortgage companies said that is crazy, and began giving approval on mortgages within 24-48 hours.
Computers have helped with this tremendously and now also has the power of the Internet.
You can now receive a loan within hours, in some instances an hour!
Payday loans are just that quick, and easy. If you are working and have a bank account, you can get a loan.
Forget any credit issues you may have, poor credit is not a problem with payday loans.
So what’s the catch, no catch really. You repay the loan on your next payday. These are short-term loans for emergencies, or really for whatever you want them for, but they are not intended to be for long repayment periods.
In addition, the interest rates reflect the fact they are a unsecured, high risk loan.
But they are an option and alternative for those in financial need.
The Use Of Payday Loans
As more and more of us struggle to get by each month, we find new and creative ways to make our money stretch to the end of the month. Of course there are times when it just isn’t going to happen, and more and more people are using payday loans to help them get through till their next payday.
The loans themselves are easy to apply for, the basic criteria to obtain a loan is that you are working and have a bank account.