For many payday loan lenders the lowest amount that they will lend to borrowers is £100. For the vast majority of those seeking to take out a payday loan £100 is the perfect amount to tide them over and provide a boost to cashflow when payday is a few days or a week or two away still. What happens though if you need a little help financially but you have bad credit? Can you still apply for a £100 payday loan with bad credit?
There is no need to worry if you have a bad credit score and have already been rejected from applications for small loans through traditional lending streams or high street banks. Most people do not realise that the modern breed of short-term loan lenders can help out those seeking a small loan with bad credit. As long as you have not been declared bankrupt within the last 12 months, or had a CCJ against your name over the last year, and you are not in the middle of going through a debt management plan, you could be eligible to qualify for a payday loan.
In theory a payday loan is the most expensive way to borrow money, with a high APR attached to the loan. But, APR is used to detail the interest attached to a loan over the course of a year, whilst a payday loan is only designed to be used over a few weeks (or up to 5-months at most with an instalment loan), so the high interest does not have as big an impact as the big scary number first suggests.
Always look for a payday loan lender that offers transparency. A good payday loan website will have a simple calculator on the screen for you to play around with. Here, you can see exactly how much interest you will pay depending on the amount of loan you wish to borrow, and the amount of time you would like to repay that loan. The longer you have to pay back, the higher the overall total is that you’ll repay, but to balance that out the monthly repayments will be lower. It is all about which you’d prefer in that situation.
There are plenty of responsible payday loan lenders on the market with an approach that does help all applicants for payday loans, even those who have a history of bad credit. Why should you be punished indefinitely for having an adverse credit rating, if you have the income and the means that prove you have the ability to pay back a payday loan within the agreed repayment terms. It is important to find the responsible payday loan direct lenders that demonstrate a trustworthy and transparent approach from the first stages of the application process. Choose to take out a £100 loan with bad credit and see exactly how much interest you are expected to pay back. Never work with a payday loan provider that adds on hidden fees and higher interest than stated, as this could put you in greater financial difficulty.