Representative APR 1172% (Variable)
Representative Example: Borrow £300 for 30 days. The total charge for credit is £72.00. Total amount repayable is £372.00.
Fixed interest rate of 292% per year.
The credit score is previous borrowing and repayment summary of a person. If anyone is not taken loan or credit card then there will be no credit history. For every successful loan repayment there will be add on in credit score and for every loan default there will be a negative entry.
For secured loans where loan is approved on the basis of pledging of some valuable assets like home or vehicle, generally lender do not bother about credit score of the borrowers. But for unsecured loan, lenders always perform a credit check on the borrower to minimize their loan recovery risk.
Payday loans which are also known as text loans are short term unsecured loans so lender go for credit score check which is mandatory by FCA to confirm suitability of the borrower.
In case of payday loans where monthly salary and savings are crucial for loan acceptance by the lenders so bad credit persons can also apply.
If you have sufficient monthly savings for loan repayment then loan approval rates are high even for the poor credit applicants also.
Generally payday loan amount is always less than the monthly savings of the borrower so that he can easily repay the loan in next paydate. For bigger amount you can choose medium to long term loans like 3 month to 18 month.
Now lenders have started to approve payday loans which can be repaid in many monthly installments starts from one month to one year.
Lenders will disburse loan only after their satisfaction about security of their money, so they try to analyze the borrowing and repayment trend of the person. The credit score which is maintained by three credit score agencies in UK gives best indication about financial health of that person. Credit score ratings are available 24/7 in internet which can be accessed free of cost, so lender never miss this opportunity.
No, for unsecured loans this is not possible. Loan supported by any guarantor or collateral then only it may be possible.
All these are only marketing slogans and they are not true. Lenders are there for business only not for charity, so how they can put their money at risk.
At time of application with any brokers or online entities like us, no credit score is checked so all types of credit score persons can apply without any hesitations. The lender who is going to bear the risk of loan and decide to fund you only perform the credit check on you. At this stage for bad credit applicants lender may reject his application or charge more interest to compensate this loan risk.