Lots of individuals have bad credit records in the UK today. This is primarily due to the global recession that forced people to stretch their static wages as much as possible and to take on unserviceable levels of debt just to survive financially. Although households are now better off than they were a few years ago, debt from the past is still coming back to haunt some.
Bad credit woes
If you had loans in the past with missed repayments and perhaps even a default, you will find it difficult to get a bank loan approved. Banks are increasingly fussy about who they approve for loans, especially of course when it comes to large amounts. Lending standards have been tightened over the years and you will find it difficult to get approval for a bank loan if you have a poor credit history. The rejection would also cause your credit rating to decline further because your unsuccessful application will be recorded.
However, don’t worry – there are other ways to borrow in an emergency and when an unforeseen expense arises.
Payday loans to the rescue
Most applicants receive approval for payday loans within 24-hours of applying, as long as they fulfil a few criteria. You must:
- Be at least 18 years old.
- Be a citizen of the UK or hold permanent residency.
- Be employed.
The amount you can borrow will depend on the level of your monthly income.
A poor credit history will be considered when applying for a payday loan but you should compare different payday lenders to get the best terms and conditions. You can do this at the allthelenders website, the UK’s first payday loan comparison site, which is authorised by the FCA and is 100% independent and impartial.