An instant payday loan for bad credit is a loan that can only be taken out over a small period of time, usually days or weeks rather than the more normal years. They are designed to help people who are low on cash just before payday, and can be used to fund emergencies until the wages arrive. In order to make sure it is easy for people to pay them back they are usually for small amounts, for example less than £1000, and if you are approved for the loan sometimes you can even access the cash the same day.
Why Do Some People Hate the Instant Payday Loan Bad Credit?
They Are Assumed to Be Expensive
Some people see them as extremely expensive, and worry that people who can’t manage their money properly throughout the month may not be clear about how much they can afford to pay back. The problem lies in the APRs that are quoted, as the interest rates are not comparable to loans taken out over a longer period. The rates themselves are not dissimilar to these longer loans, but because they are only over a few days or weeks the annual interest rate quoted seems extortionate. However, as the loan is for a short period of time the total amount paid back is not excessive.
Charges Increase Rapidly
This is true, the interest charges and fees will mount up very quickly but only in the circumstances where you are missing repayments or are extending the loan. If you pay off the loan as expected within the agreed timeframe, this will not apply and all the charges and fees will remain as initially agreed.
No Time to Choose Wisely
These loans are often required quickly as people realize that they need funds urgently before their wages are paid. The worry is that the first lender that offers a loan will be accepted without thorough checking of the conditions of the loan and the lender. This can happen, but a company such as Bonsai Finance do all that work for you so you simply have to choose the appropriate loan from the choices given.
What These Loans Can Actually Do for You
Sometimes when you need a little extra cash you would like to take out an instant payday loan, but bad credit worries make you think it wouldn’t be possible. This could not be further from the truth, and just as an example, the lenders we deal with can supply instant payday loans bad credit with excellent rates but they also have benefits over and above helping you with immediate money issues.
When you have a bad credit score it can seem impossible to imagine it ever getting better, but there are things you can do to improve it. One of these is to show that you are capable of paying back repayments in full and on time. This can go a long way to making sure that your credit rating increases as you are proving your trustworthiness, with the added benefit of the charges and fees remaining the same as when you agreed the loan.
When we find lenders who can offer you loans, we match them to your exact requirements meaning that you will never have to rush to accept the first one you see without knowing the fees and charging schedule. As these will also be within your budget, completely affordable and with competitive interest rates, all the worries that people generally have about instant payday loans bad credit can be forgotten about. They won’t be as expensive as people think, the charges won’t increase rapidly if you pay the installments on time, and with our selection criteria you will only be given suitable loans for you to choose from.