Payday Bad Credit aims to help customers looking for payday loans no credit checks and borrow up to £1,100 repaid over 2 to 4 months. Whilst borrowers in the UK may regularly be searching for payday loans without credit checks, this is not a very common product. Since the loan is unsecured, direct lenders must carry out a number of sufficient checks to ensure that a customer can repay without falling into financial difficulty and this usually involves carrying out a credit check and affordability check to ensure suitability.
At Payday Bad Credit, we allow customers to borrow up to £1,100 repaid over a few months, allowing people to spread repayments and also repay early if they have the means to do so. Our online application only takes 5 minutes to complete and you will be asked a series of basic questions such as name, age, address, income and bank details so we know where to send the funds.
There are no fees for applying and if successful, funds will be transferred to your bank account within 15 minutes to one hour. We are a direct lender but in the event that your loan is not successful, we may recommend similar products from other lenders who are more likely to approve your loan.
Key Features From Payday Bad Credit
Applicants must be over 18 and UK resident
Applicants must be employed and able to afford repayments
Borrowers may search for payday loans no credit checks if they feel that they have bad credit and may be declined as a result. Therefore, they believe avoiding all kinds of credit checks may result in a better chance of approval.
The customer may still want a payday loan, which is commonly used for emergency purposes such as car repairs, pressing bills or home emergencies. The idea is that you borrow the money upfront in one lump sum and receive the funds to your bank account within a few hours. You are able to pay for your expense immediately, giving you a bit of breathing space, and then you can repay your loan on your next payday, on a scheduled repayment date that you choose e.g the last Friday of the month.
Whilst there are over 1 million payday loans funded per year in the UK, the industry is regulated by the Financial Conduct Authority and lenders must carry out sufficient checks to ensure that customers can afford to repay their loans without falling into arrears or greater financial difficulty. So whilst you may be looking for payday loans no credit checks, this is unlikely to be offered by most payday lenders in the UK.
As a result, you may be offered alternative products if you have bad credit, such as adding a guarantor or adding more security to your loan. But some customers do not like being passed onto other companies known as ‘brokers.’ Hence, they may type in payday loans no credit check no brokers.
What Alternatives to Payday Loans No Credit Checks Are Available?
Guarantor Loans: Adding a guarantor to your loan application is one of the most effective ways to access a short term loan for bad credit. The idea is that you have a guarantor, which is someone you know, to co-sign your loan agreement and they agree to cover your payments if you default. This is typically a close family member or friend who wants to help you out and see you get the finances you need and get back on track. This person must have a good credit rating and ideally a homeowner status, since this adds a lot of credibility to your application that your loan payments will be covered eventually.
Customers can borrow £200 upwards, which is very close to a payday loans alternative and you can typically receive funds on the same day too. Make sure that you choose a guarantor who you trust and has a good credit score – since the probability of approval will depend heavily on this.
Second Charge Loans: This is also known as secured loans. Instead of carrying out a credit check and basing the success of your application on your credit score, you are using something valuable you own as security. If you have equity in a flat or home, you can get your loan secured against it, allowing you to extract value from your valuable asset. It is known as second charge because it becomes the second thing charged every month after your mortgage. The risk is that if you cannot keep up with repayments, the lender has a right to repossess your property in order to cover their loan sum. This is typically for borrowing much larger amounts, but there is no credit checks involved.
Secured loans also come in the form of art, jewellery or anything valuable that you own. You may have to speak to the lender directly about its value and how much they will lender against it.
Logbook Loans: If you own a car, bike or van, you can borrow money secured against your vehicle. You have to show the lender a copy of your logbook, which shows that you are the owner or registered keeper of your vehicle. Funds can be made available very quickly and are also typically used for emergencies and other lifestyle purposes. Again, if you cannot keep up with repayments long term, the lender has the right to repossess your vehicle.
Improve Your Credit Score
If you are worried about being declined for payday loans no credit checking, you can look at improving your credit score. This means that you have a greater chance of being approved for unsecured loans, like payday loans, and other financial products too.
Start by getting your credit report for just £2 or you can use free trials offered by Experian, Equifax, Noddle and Call Credit. They will give you suggestions and ways to improve your credit rating which could include joining the electoral roll, closing any store cards, unused credit cards and slowly paying off other debt you may have from credit cards and loans. Read our guide on 7 ways to improve your credit score.
Your credit score can always change and improve and Payday Bad Credit is very passionate about helping people improve their credit status and get their finances on track.
If you apply with Payday Bad Credit today, you have peace of mind that there are no upfront fees and we will not pass on your data without your permission. If you are not approved, we may suggest other types of loans from our partners – and these will be much better suited to your requirements. To start, simply click on the apply now button below: