During tough economic times, a considerable percentage of the population faces money woes. As a result, it’s not unusual at all for people to have less-than-perfect credit. Of course, having bad credit can put serious limits on a person’s ability to get loans.
When extra cash is needed, a person who has bad credit can be left in quite a bind. Fortunately, guaranteed payday loans are readily available. The reason this is such a good thing is because these loans are available for people who have less-than-perfect credit. As a matter of fact, payday loan providers don’t perform credit checks at all.
There is no question that these loans have become so popular in the UK largely due to the fact that they are available to people with poor credit. Information about obtaining a loan with bad credit is outlined below.
Traditional Loans have Strict Credit Requirements
It is just about impossible to obtain a traditional bank loan without perfect or close-to-perfect credit. A few late payments can disqualify a person from getting the loan that he needs. Even if he does qualify, he may have to deal with a really high interest rate. At the end of the day, it’s just not worth it. The entire issue can be sidestepped by applying for a payday loan instead. Guaranteed payday loans are easy to obtain, and they are available to people with excellent credit and bad credit alike.
Small Mistakes can Disqualify Hardworking People
An otherwise hardworking person can be left to fend for himself simply because he made a few late payments. It doesn’t seem fair, and it can be really upsetting when extra cash is needed so badly. It should come as no surprise that payday loans are becoming very popular in the UK. People are learning that they don’t have to have excellent credit in order to get the cash they need. They don’t have to worry about banks poring over their financial records in order to qualify for payday loans. It is nice to know that extra money is available, even if a person doesn’t have exceptional credit.
Simple Requirements Make it Easy to Get Payday Loans
People are often surprised to learn that they can obtain payday loans despite having bad credit. The reason that payday loan providers don’t even consider a person’s credit is because they withdraw the repayment for the loan on the person’s next payday. In other words, the payday loan provider is assured that the money will be repaid. These loans are generally repaid in full within a week or two, so the lender is not going to lose a lot of cash during the transaction.
Proof of Income is Necessary
Although a person’s credit history is not taken into consideration during the payday loan approval process, he does need to have verifiable income. After all, the payday loan provider needs to be sure that he will be able to repay the loan as required. In nearly all cases, providers are able to verify a person’s income online. They don’t usually need any actual paperwork. At the very most, a quick phone call may need to be made. As long as that information is verified, guaranteed payday loans are processed quickly.
Repaying the Loan is Easy
Receiving the funds from a payday loan is easy. Repaying one is too. That is because the repayment is scheduled at the same time that the loan is given. The loan is deposited directly into the recipient’s bank account. On his next payday, the loan amount plus any fees is withdrawn from the same bank account. The person does not have to mail any payments, and he doesn’t have to worry about missing a due date. The entire process is automated, so he doesn’t have to think about a thing. It’s another reason that these loans are proving to be so popular in the UK and elsewhere.