What are payday loans and how to get them when you have bad credit?
Payday loans are a great way to handle any sudden financial requirement or crisis. These loans usually come due on the next payday of the borrower. However, like all other debt, these payday loans for bad credit or otherwise should be treated carefully. This is especially so because they usually have extremely high rates of interest and if you miss the repayment of the loan, it can have serious consequences
Payday loans are exactly what the term implies, i.e. they are loans which are provided under the condition that you repay them on your next payday. These loans are usually of a small amount lower than or equal to £2000. The main features of these loans are that they are usually of a small amount, they come due on your next payday. The lender may also ask for access to your checking account or you may have to sign a cheque for the complete balance in advance so that the lender can deposit it when the loan comes due.
Other features of these loans
The other features of these loans can vary from lender to lender and some of them are structured in such a way that they can be paid off in one lump sum. Then again there are the interest-only or rollover or renewals which are quite common. Some of these loans may be structured in such a way that they can be repaid in instalments over a longer duration. The lenders can provide you with cash or a cheque, load the funds into a prepaid debit card, or deposit the money electronically in your bank account.
Payday loans for bad credit
Getting any type of loan can be difficult if you have bad credit and the same applies for payday loans for bad credit. However, it is not impossible and you will be able to find many loan brokers who will help you to get these loans even if you have bad credit score. The best part is that with good loan brokers you can get many different options of loan products.
Pros and cons of payday loans
As with everything else there are pros and cons to these loans. Let us look at them in details
Pros of payday loans
Cons of payday loans
All in all payday loans are a short term solution for a sudden financial difficulty, but should be handled carefully because you will be putting your next pay cheque on line.
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ABOUT THE AUTHOR
Oyster Loan is the brokerage company in the UK, with experience in providing the deals for the loans for the bad credit cases. We have been broking for the loans with no upfront fees and no guarantor option for several years. Info: http://www.oysterloan.co.uk/