What it means to have Bad Credit:
To put it simply, a person having ‘bad credit’ means that he has bad credit history. This credit history depends on several factors, like the amount of available credit, the amount of money borrowed, and whether or not payment deadlines were met. So lenders or creditors may not want to lend money to a person with bad credit history. They believe that a person’s past financial behavior leads clues to his future financial behavior.
Having a low credit score is indicative of bad credit, whereas a high credit score would be indicative of good credit which is good for bad credit payday loans. Having a low credit score can make it difficult and even more costly for a person to obtain car insurances, mortgages or other loans.
While it is important to be mindful of your finances, you may have to encounter some unforeseen financial troubles at some time which may end up with a bad credit. And it could be that even with all the bad credit, you may urgently require a loan to take care of some business.
Fortunately, not all hope is lost for people who find themselves in such situations. Depending on what type of loan you want, there are some companies who may still lend you money even if you have bad credit. If you are looking specifically for payday loans, you are in luck.
Payday loans are small amounts of money which you borrow for short-term use. There are several payday loan companies which will lend you a loan, irrespective of your credit scores. However, you may be required to pass them a credit check to borrow money from them.
Lending Stream is a famous payday loan company, which will overlook your bad credit history and lend you money. Their loan amount is £50 to £600, and their loan term extends for a period of six months. Although it is a six month loan, you can still make an early repayment if you like. The interest which you will be charged is only going to be for the time you have the loan with you. Their representative annual percentage rate (APR) is 661.8%.
Another payday loan company which will be willing to overlook your low credit score is Sunny Now. Their loan range is slightly more than Lending Stream’s; it is £100 to £950. The loan term extends over a period of 6 months, with an added option of early repayment. If you borrow a loan up to £950, Sunny Now will charge you an interest rate of 21.6% per month. The Annual Percentage Rate (APR) is 979%.
Quick Quid is yet another payday loan company which can loan you from £50 to £1,000, despite the state of your credit history. Although, their loan range is slightly more than both Lending Stream and Sunny Now, their loan term is shorter. It extends for a period of 28 days to 3 months. Their APR is also higher than the two aforementioned loan companies; 1270% APR. They offer the option of early repayment as well.