Short term loans or Payday loans provide a fast short term borrowing solution to those who need a quick smaller loan paid instantly or on the same day. Payday loans typically have to be repaid within 30 days, while Instalment loans can be repaid over a series of payments from 1 month to 12 months and for amounts of between £50 and £2500. However the repayment terms and loan amounts do vary between lender to lender and may vary depending on your credit file and if you have a history of bad credit.
Pawn you valuables for quick cash loans
Secured loans can provide very different types of small loans, including pawnbroker loans and car title loans. The former mean offering up some of your personal items as security for the loan, and can require that these items be sent to the lender for safekeeping. Lenders may offer loans on gold, on wines, watches or fine art, or other costly items in the home. This type of loan is best for emergency borrowing.
Car title or logbook loans are a more complicated form of loan, where you hand over the title of your car to the lender, and they provide you with the loan. As long as you keep up repayments, you can continue to drive your own car, but you no longer have ownership or possession of it.
Are payday loans with no credit check required the right solution?
Some lenders don’t use credit checks
Need a loan but have a bad credit history, or no credit score at all? There are few ways that people with bad or no credit can get loans, and the traditional banks and building societies are unlikely to lend you money if you are in this position. One solution can be to choose a payday loan with no credit check, which means that the lender won’t regard your previous credit history when deciding whether to offer you a loan. There are both benefits and negatives to this kind of payday loan, and if you are in this situation and think that you need to get a no credit check loan from a payday lender, then you can still check out what companies are offering.
Reasons to choose a no credit check payday loan
Credit checks provide lenders with information about the trustworthiness of the person borrowing the money, and it is also there to help ally types of lenders to decide whether they want to lend you money. With a no-credit check loan, you can get the money you need whether you have a bad credit past or not. You can also benefit from getting a payday loan if you repay it on time, since the company can report your repayments to the credit agency and you can start to build up your credit rating. Of course, if you fail to repay the loan, your credit score will drop even further.
Are there reasons to avoid a no-credit check loan?
Short term cash loans without credit history checks
There are several reasons why people who find themselves in financial difficulties might have to reconsider taking out a loan which offers no credit or file history check. Firstly, most of the lenders offering these types of loan do, in fact, check your credit history. Rather than using it as a basis to decide whether to lend you money, however, most payday lenders will consider your application regardless of your low credit score.
In addition to the matter of being checked despite the title of the loan, the amount of money you receive from the loan may also be a problem for you. The issue here is that lenders who consider you despite your poor score will also only be willing to lend you a small amount of money. The loan will be for maybe £50-£150, and not much more than this. If you want a substantial loan, then the chances are that you are not likely to receive the money you need through a payday loan. Instead, you may need to explore other options, and consider what type of lenders might be willing to offer you money despite your low credit score. You may also look at other types of payday or bad credit guarantor lenders to see whether they would consider you despite your poor credit score. Guarantor loans offer the chance for adverse credit applicants to borrow money money often upto £5000 that can be repaid over 1-4 years at far lower interest rates when compare to a payday lender.
Seeking information about Payday loan brokers?
Short term loan brokers can remove the hassle from finding a loan
Are you looking for a payday loan, but don’t know how to go about choosing a company or discussing your needs with them? Many borrowers are no longer certain about which payday lenders to trust, and they may also not feel confident about approaching the company themselves and discussing what they need. Instead, you may have decided that you would like to conduct your business through a payday loan broker, a middleman who can help you to work through the large numbers of lenders offering payday loans, and ensure that you are selecting the right one for your needs, and for your ability to repay the loan. Although many borrowers are aware of brokers, there are a lot of businesses out there who promote themselves as brokers, and then send high fees to the borrowers. By knowing more about the risks and advantages to using brokers, you can work out for yourself exactly what you will need from your intermediary.
What a broker can do for you
When you need a payday loan, it can be hard for a first time borrower to decide which is the best lender for them. There are comparison sites which will help you to research payday lenders such as this one, but you may still need the help of a third party. This is where a broker can be of great benefit to you. They are able to offer you advice and information about different payday lenders. They will also be able to research your lenders, contact the chosen company, and then work out a payday deal with them on your behalf. The broker then receives payment for these services in the form of fees. While these fees make your payday loan higher, overall they can benefit you by finding cheaper loans with reduced fees and charges. If you are struggling to find a company that fits your needs, then a broker could be the perfect solution to that problem, and is definitely better than making an agreement which is wrong for you, and that you are unlikely to stick to.
Why using a broker has become more risky
Brokers will complete your loan application upon your behalf
In the past, a payday loans broker was of much the same standard as other financial service providers such as mortgage brokers. In recent years, however, a specific type of broker has appeared in the payday loans industry. These brokers are not actively sought out by borrowers, but instead design their website as though they were a payday lender themselves. When the borrower applies for a loan, the broker then researches the loan, and finds a company who can lend the required amount. The broker then passes the loan on to the borrower, but with increased fees and charges. Some of those charges have now been ruled illegal by the FCA, but for many borrowers, the damage has been done, and they now view all brokers with the same suspicion.
Finding a payday loan broker
If you don’t feel able to find a payday lender by yourself, and want the assistance of another party, then you need to start looking for a responsible broker. There are some ways that you can find out which companies are legitimate brokers. The first clue is that they will be regulated by the FCA – Financial Conduct Authority, who will be regulating their services and will ensure that they are not overcharging customers. Secondly, the payday loan broker should be upfront about any types of fees that they will charge, so that you know exactly what to expect from them. They should be able to work with you in order to obtain a payday loan, researching companies that you have suggested, or that they think will work with your stated needs. The broker should also not start raising the level of the loan, or increasing the fees that they are charging without explaining why. There are many good payday loan brokers out there, and you should be able to find a responsible company who can handle your loan transaction.
What are the alternatives to payday loans for bad credit?
What are the Payday loan alternatives?
The financial climate has left a lot of ordinary working people with poor credit ratings, so-called ‘bad’ credit, and even with debt collection orders that they have no way of paying. Even without the lack of lending facilities for these people, the dramatic collapse of the banks has caused the average UK resident to distrust and even resent the banks for their behaviour. This has led to the rise of other lending companies, including the well-known payday lenders. Although payday loans are not always as bad as the media declares, there are still plenty of alternatives to taking out a loan with these companies, or with the banks. If you are looking for a fast alternative to the payday loan company, then you can still find help with money, with or without bad credit.
Borrowing on your credit card
Can you get a lower rate on a credit card?
After the credit crunch, people are embarrassed about the way in which the banks and other secure lends behaved, and this includes the credit card companies. Borrowing against your credit card seems to take back to those times before the financial crisis, and can make people nervous. However, if you have a low rate of interest, you may find that you get a better deal with your credit card than with a payday loan. Even credit rebuilding cards, which usually charge a high rate of interest, will be better than taking out a payday loan with its very high rate of interest.
Guarantor loans with family and friends
Guarantor loan alternatives?
If the problem which is holding you back is not being able to get enough credit to fund your loan, then you should try borrowing using the credit of family, friends or neighbours. Known as a loan with a guarantor, a person with good credit helps you to apply for the loan, reassuring the company that you can pay. You repay the loan, often over a period of more than one year, or the person who guarantees the loan will have to take on the debt. This can be a good way of getting money if you have a regular salary, but can place tension on your relationships if you do not manage to repay the loan.
Borrowing with a credit union loan
If you want a simple solution to your debt without having to go to a payday lender, then you may be able to borrow the money you need from a credit union. You may not have even thought about this kind of loan, but they can be a great way of dealing with emergency debts. They often have a reasonable rate of interest, and long borrowing periods of up to one year. There are over 400 credit unions in the UK, with more than £600 million on loan to their members. You can easily locate the nearest credit union to you using local directories. They will lend to people in the local area, or the same industry, with bad credit, low credit scores, and with a need for a loan of up to £1000.