You may often wonder whether a bad credit loan could help you. It is not a question that has simple answer. This is because it will depend on your circumstances. There are probably a few main questions that you will need to ask yourself and then you will be able to work it out for yourself.
Am I happy to pay for one? – to start with you should think about whether you are happy to pay for the loan. This might sound a bit odd – ‘pay for the loan’. This is because many people do not think about a loan as something that we buy. However, that is essentially what it is. This is because there will be a cost to taking out a loan. You will usually always pay interest on a loan and you may also have to pay fees as well. This means that you will have to pay these costs for a loan. It is good to find out how much they are and then you will be able to work out whether you are happy with paying that cost or not. The lender will be able to confirm the cost, but you might also find that there is a calculator on the website that you can use. It is worth thinking about whether you would have still bought that product has it been its price plus the cost of the loan.
Can I repay it? – it is also extremely important to make sure that you are able to repay the loan. With any loan, if you miss a repayment, cannot pay it in full or pay late, you will face a charge. The charges vary between lenders and between loan types. However, there will always be one. This means that it is extremely important to make sure that you can repay it. If you have already worked out how much it will cost, then this will help as you will have to pay the whole loan, so what you borrow plus the costs back on your next pay day if you have a bad credit loan. It is therefore really important to make sure that you are confident that you will be able to afford this. You need to check that you will have enough money in your account. You may just think that if you are paid more than you owe, then this will be fine. However, there may be other payments going out on that day as well, so check for that. Also think about whether you will be able to manage to pay for everything else that you need as well, once that loan is repaid. Paying a lump sum out at the beginning of the month could leave you short for the rest unless you are really careful about your spending.
Do I really need it? – it is also a good idea to always ask yourself whether you need the loan. This applies to every single loan you take out not just bad credit loans. It is good to think about what you will be using the money for and whether you think that it is justified. If you need money to pay rent so you do not get evicted, then you could think it is extremely important. However, if you want the money to buy a new dress you saw in a shop window and just thought would be nice, then that might not be justified. Also think about whether you could get the money elsewhere. Think about whether you have a savings account that you could get the money out of. It can be hard to spend savings, especially if we have worked really hard to put them there. We might be saving up for something specific too and not want to use them. However, it will normally be a lot cheaper if we use savings rather than borrowing money, so it is well worth considering. Another alternative could be to save up and then buy the item so that we do not need a loan. You may even be able to go without the item entirely. Make sure that you give it some thought.
Hopefully, once you have thought about all of those things you will be answer the question as to whether a payday loan that’s guaranteed will help you. It is a good idea to think about the consequences of not having one and having one as well as comparing different types of loans. Think about what the main differences are between the different loans and this will help you to make sure that you pick the one that is most suitable. A bad credit loan tends to be best for people who have a poor credit score and can therefore not borrow anywhere else or need to get money quickly as it can sometimes be arranged so that you have money within a few hours. You will also only be able to borrow up to £1,000 so it covers smaller items and you will need to repay it quickly so you will have to be prepared to only have the loan for a small amount of time. If you do this, you will hopefully be able to make the right decision for you. As each of us is different the answer will not be the same for everyone.
There are many types of loans available to us and it can be tricky to know which to choose. Often, we just want a loan that is easy so that we do not have to worry about anything complicated. We might be familiar with some sorts of loans and think that those are easier. However, it is wise to make sure that we do not decide to not go for loans just because we do not know how they work. It can be tempting to assume that because we have not heard of this type of loan that it will be hard and that we should not bother.
We all might have different ideas on what an easy loan might be. Therefore, deciding whether one will be easy will depend on our own personal opinion. We will need to know how a loan works before we can make that decision.
The first hurdle we may have with a loan is the application form. These can often be complex to complete and we may even be put off before we start to apply. We might imagine lots of paperwork and all sorts of complex questions to answer which could take ages. Therefore, you may find that it will be important to you to have a really simple application process.
Then you might wonder how easy it actually will be to get the money that you need. Some lenders have really tough criteria and you will need to have a really good credit score in order for them to accept your application. This means that you could be put off trying to apply if you fear that your credit rating will not be good enough. Sometimes, you may not be sure and you may be scared of applying and being rejected. If you get rejected it will show up on your credit record so you do not want to risk this if you can help it.
It could also take a while for you to get the money. If you need it quickly then it could be a stressful wait until the money arrives and you can use it for what you need it for.
No Credit Check Payday Loans
These loans work in a specific way. The name can be off putting as it sounds complicate, but it really isn’t.
The application is usually done online or it can be done over the telephone. This means that it should not take very long and it is easy. The lenders wants it to be easy for you to borrow and therefore make sure that process is as simple as possible.
Then the credit check is a lot simpler as well. The payday lender will not look to see whether they feel you are capable of repaying the loan, they will lend you money anyway. As they small amounts they take on less risk and are therefore more willing to lend to anyone. They will therefore even let those who have the poorest of credit scores, to borrow money from them.
These loans are also fast. They can sometimes even get the money to you within a few hours. This is because they work quickly, have lots of staff and do not do such an intensive credit check. They also know that many borrowers will need the money for emergencies and so will work hard to release it quickly. Some of them are even open over night and at weekends so that they can provide you with money even when traditional lenders are closed.
So, you can see that although a payday loan does work differently to other types of loans, they are still easy if not easier though than more traditional loans. You will not need to worry about too many things as they are so straightforward. They do work slightly differently in that you will need to repay what you borrow in one lump sum, which includes both the money you borrow and the interest and fees that you are charged for them. Normally loans are repaid in instalments but as you borrow smaller amounts with these lenders then it is easier to afford to repay it in a lump sum. As long as you know how much you will be paying and you have checked that you will have enough money, then you should be able to easily repay it like this. The payment also goes out on your next pay day which means that you should have money in your account that will be able to cover that payment as well. They even set up a direct debit so that there is no chance that you will forget to repay the loan. It will actually be great for those people who do not like being in debt as it will be cleared really quickly.
Parents will often worry about their children and their financial situation. They will be concerned that they are perhaps getting themselves into unnecessary debt or that they are not managing financially. It can be difficult at times as a parent. But even if you think that your children are making mistakes it can be better to let them carry on for a few reasons.
Children Do Not Always Take Parents Advice
As children grow up they like to feel independent of their parents. They want to feel grown up and not always rely on the help if their parents. This means that they might not want help. They may not appreciate being told what to do. They may also even want to go against what parents suggest as they feel like they are being babied and they should do their own thing. If they are strong willed they might even purposely go against parents advice even if they know parents are right, so that they can feel like they are doing their own thing.
They Can Learn from Their Decisions
Sometimes it can be better to learn from your own mistakes than have someone teach you. It can be more memorable if you make a mistake as you will have been through the situation yourself. Obviously, no parents want their children to suffer but if they make a small mistake then they will hopefully learn from that and it will avoid them making larger ones in the future.
They Might Know More than Parents
It is also worth parents noting that the children might actually know more than them. Although parents tend to be wiser because they have had more experience, they may not be up to date on their knowledge. This means that there is a possibility that their children actually know more about what they are doing with money than the parents do.
Parents Will Not Always Be There to Help
It is also worth remembering that as parents you will not always be there to help them. This means that you need to let them have a go on their own and learn form some experiences so that they will have more knowledge and confidence. If they do need help desperately, they will hopefully still come to you and you can help them then.
Parents May Not Know the Full Story
It is also worth noting that parents may not know the full story with regards to their children’s borrowing. It might be that are in a temporary cash flow problem and if they take out a quick loan it will help them out and when they get paid they will easily pay it off and be able to move forward. It is important to think about the consequences of them not having the loan as well as the consequences of them having it. Make sure that you understand their situation fully.
So, it should not really be a decision that you can make without fully understanding the situation. It can be good to talk to your children about their situation and why they are taking out the loan and get an understanding of their situation. This will allow you to be able to decide whether you think that it is a good idea. It can be scary, thinking about your child borrowing, but if you have borrowed yourself then it is not that different. It is also worth remembering that there is good and bad borrowing and if they are borrowing for a good reason, have compared all loans and chosen the best one for them and know that they will be able to repay, then this will be a good loan and worthwhile.
It can be a good idea to make sure that you think about their situation and whether it is good for them. Just because something may not seem right for you, it could work well for you. It is easy to think that you are right and think about what you would do, without considering them and why they are taking this decision.
It can also be good to try to be understanding rather than judgemental. Think about how they will be able to learn from this if it does turn out to be a mistake. In any case it will teach them responsibility and hopefully something about money management. This will be a really useful thing for them to learn. If it does goes wrong rather than thinking ‘I told you so’ try to feel sympathy and discuss it with them to try to help them learn. If you get too domineering or annoyed with them it will make it far less likely that they will listen to your advice. But if you listen carefully to their problems, and be gentle and understanding and then give them a few bits of advice they are more likely to listen and take it and then learn from the experience.
If you are looking to buy a new coat, then you will be in the position of having to think about how you will pay for it. You need to think about where you will get the money. You may be in the position of having plenty of money available to you and therefore you can just use money form your current account or perhaps draw some from your savings account. However, there will be some people that will not have the money available to them and so they will have to decide whether they want to buy the coat still, even though they will have to borrow the money.
To Borrow or Not to Borrow?
This decision should be made because a loan will cost money. Therefore, they need to think about the consequences of that. The coat will be more expensive as a result and they will have a commitment to repay the loan. This means that they will need to decide whether this is something they want to take on. It might be that they decide that they will manage with their old coat or not get one because they do not want to take on the loan or that they decide they feel it is worth borrowing and look for a loan.
Choosing the Right Loan
The next decision ill need to be which loan is the right one to choose. This can be hard because there are so many loans to pick from. Some loans can be easily eliminated as you would not use a student loan to buy a coat. However, there are still a lot of loans which can be used for any purposes and so there will still be a lot to pick between. It can be wise to think about what you want form the loan and that will help you.
Start by noting down how much money you need. It is likely that you have a specific coat in mind and so you will know how much it will cost you. Then you will be able to see which loans will provide you with that amount of money. You will then need to think about your credit rating. If you have a poor credit score then you will not be accepted for all loans and so this might be something you need to consider. You might have to go for no credit loans, perhaps or look for lenders that will be more lenient when they are lending money. It could be that you have a credit card that is already arranged that you might be able to use perhaps.
Then you will need to think about the repayments. Many people do not think much about these as they are just focussing on getting the money that they need. However, it is really important to make sure that you are able to repay the loan. If you do not repay it will have a number of consequences. It will mean that you will have extra charges and so will have to repay more money. It will show up on your credit report which might put off lenders in the future form letting you have money. It may make the loan last longer. So, check the repayments and find out how much they will be and when you will have to pay them. This will allow you to decide whether you will be able to afford them. It is a good idea to actually look at your household accounts and check the figures at this stage. It can be tempting to just assume that you will have enough money, but it is far better to actually check just in case your estimates are not right.
Will an Instalment Loan Work?
You may now be at a stage where you only have a few different loans to choose form. You will then need to ask yourself whether certain loans will work for you. For example, if you are looking at an instalment loan you will need to check it out. Think about whether you will be able to borrow enough money to start with. These loans tend to be for up to £1,000 so it is likely to be enough but it depends on the price of the coat. You will then need to think about your credit rating. If you have a good credit rating then it could be that you will have quite a lot of loans to choose form but with a poor credit rating then you will have less options. Also check the repayments. You should be able to work out exactly how much you will need to repay, in fact the lender should be able to tell you. Then you will be able to check whether this is an amount that you will be able to afford.
There are lots of possibilities for spending loans. Having this extra money can give us a lot of freedom and allow us to pay for things that we would otherwise not be able to afford. However, we do need to be sensible about what we are spending the money on. We need to be completely sure that we are making the right decision. We also need to make sure that we are choosing the right type of loan as well.
Should I Borrow?
The decision as to whether to borrow money is an important one. You need to think about whether you are happy with paying the cost of the loan for the item that you are spending the money on. Although at this stage, you will not know what the loan costs, as you will not know how much it will be as this varies with loan type, you will know that there will be some costs.
It is worth thinking about what you are using the loan for and whether you are prepared to pay this extra money for and whether it will still give you good value for money. This can be quite a complex decision and it is well worth spending some time thinking it through.
The first thing you should consider is whether you can afford the item without borrowing any money. This could be as a result of your spending your savings, for example or saving up for the item. Using your savings can be tricky. It can take a lot of hard work to save up money and we can tend to be reluctant to spend that money as we are perhaps keeping it for an emergency. It is worth questioning whether the item you are considering borrowing to buy, is an emergency and if it is then use the savings but if it is not, then consider whether you should really be buying it at all. Or, if it is not urgent then you could save up for it. Try to not be emotionally attached to your savings, even if you are saving them up for a specific purpose. You can replace them, perhaps with the money you would have used to repay the loan and it will normally be cheaper to use them, rather than borrow.
If you have no savings and need the money quickly for an emergency or you would take years to save up for the item, then it is likely that a loan will be a good option for you.
How to Choose the Right Loan
If you have decided that borrowing is the right decision for you, you then need to find the right loan. There are lots of different loans available but they all work differently and so you need to make sure that you pick the right one. This is sometimes really obvious as if you want to buy a home then you will use a mortgage. But if you need to buy food or pay a bill, for example, you will need a more general purpose loan.
There are lots of loans that fit this category and it is a good idea to know about them. You will find that they have quite big differences which is good to be aware of:
How long they last
How frequent the repayments are
How much the repayments are for
How much you can borrow
How well-known the loan type is
What the customer service is like
You will need to think about how much you need to borrow, how long you need to borrow it for and how much you can afford to repay as well as what you are looking for in a lender and things like that. It can seem quite complex but actually need not be. If you do it in a step by step way you will be able to eliminate certain loan types as you go through and it will become easier and easier.
Will a Payday Loan Work for Rent Deposits?
So you may get to a stage where you are left with just a few and you will need to see whether they will address your needs properly. For example, if you rent deposit is needed really quickly and is for less than £1,000 then you could find that you have the option of a payday loan. It will now be up to you to think about whether the loan will suit your needs. Consider whether it will be the right loan in terms of the repayment. You have to repay a payday loan in a lump sum and you should calculate whether this is something that you will be able to afford to do. Make sure that you will have enough money to cover it and also enough money left to pay for everything else that you need to buy.
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