What Can Loans for Bad Credit be Used for?

There are some loans where it is specific what the money has to be used for. For example, a student loan can only be used to cover the cost of a course at university and any living expenses that go along with it. However, there are many loans where you will not have to use the money for something specific and this is the case with a bad credit loan. The lender will not specify that it needs to be used for a specific thing and it will therefore not matter what you append it on at all. However, you will find that there are some limitations as to what you can use the money for due to the nature of the loan.

Amount you Can Borrow

A loan for bad credit will normal only provide up to £1,000 to borrowers. Although this can be a handy amount of money, it will depend on what you are intending to use the loan for as to whether this amount will be enough for you. It is also worth noting that if you are borrowing form this sort of lender for the first time, they will normally not lend you such a large amount. As they do not look too closely at your credit report, they will take on a lot of borrowers that have not managed to repay loans in the past. They will want to build up trust with borrowers because of this and will only lend them smaller amounts of money to start with. Once you are able to prove that you are capable of repaying you will be able to borrow a larger amount of money. So the loans cannot be used to buy really expensive items and even cheaper items may be tricky if you are a first time borrower.

Time for Repayments

When you take out loans for bad credit you will not hold them for very long. They are usually set up so that you have to repay them in full when you next get paid. This can be good because it means that the loan will not last very long and you should have money to be able to repay it. However, it can be a problem because you will need to find that money quickly and repay the whole thing in one go and not be able to spread the payments. You will therefore need to think about whether you will be able to afford this. If you borrow a larger amount, you will have more to repay and so you need to make sure that you are confident that you will be able to repay what you owe when you need to repay it.

Cost

It is also wise to think about the cost of the loan because you need to consider whether you are happy with the value for money that it provides. You will find that loans vary a lot in how much they charge and this will depend on many factors. It is always a good idea to find out how much the total cost is so that you can decide whether you think that the cost will be worth it, considering what you are buying with the loan. Imagine that the item was priced at the price you are paying for it plus the cost of the loan and think about whether you would still be prepared to buy it. This is a good test to see whether you feel that this loan will be used well for this purpose. Also compare the cost to other loans and lenders to make sure that it is competitive.

There are some loans where it is specific what the money has to be used for. For example, a student loan can only be used to cover the cost of a course at university and any living expenses that go along with it. However, there are many loans where you will not have to use the money for something specific and this is the case with a bad credit loan. The lender will not specify that it needs to be … Continue reading “What Can Loans for Bad Credit be Used for?”

How Quick are Emergency Loans?

If you need money in a hurry then you may look to emergency loans to help you. However, you might worry that they will not be quick enough for you, so it is good to check this out first.

Speed Varies Between Lenders

It is worth noting to start with that the speed of a loan will vary between different lenders. Although emergency loans tend to be quick compared to traditional loans there will still be some differences. You will find that the quickest will tend to be able to get you the money that you need within a few hours, but there may be some that will take longer. It is always a good idea to check directly with the lender to find out how long they think it might take. This is because they may have staff shortages or computer problems, for example which might slow them down at a particular time and also, they might be quicker for some people, such as existing customers. So even if they say on their website that they are going to be really quick, it is wise to make sure that this will be the case for you when you apply for a loan using them.

Working Hours Vary Between Lenders

It is worth noting that a loan will only be quick if there is someone available to process your application for you. This means that if you want a loan outside of working hours, then it may be slowed down until the lender opens. The good news is that there are some lenders that operate all of the time and this means that even if you need a loan at the weekend or overnight they will be able to provide one for you. It can be a good idea to check this out, if you do need money at this time so that you can pick a lender that will be able to get you the money when you need it.

You Need to do Your Bit

It is worth noting that you will need to also do your bit to make sure that the loan is quick. It is wise to compare lenders and make sure that you pick the one that you feel will give you the best value for money. This will take a while and so it is wise to get started with it right away. You might also want to consider finding out a bit more about loans and lenders anyway and then when you are in a situation where you need to borrow money, it will be easier for you to pick one as you will know what you are looking for.

You also need to be careful when you are applying or the loan. It is possible that you might be a bit worried or even panicked about getting the money and you may rush things. The problem with this is that there is then a chance that you might make a mistake. It could be that you miss information off the application or you do not provide all of the documents that you need to and this will mean that you have to have it returned and change it and that will slow things down. Therefore, it is really important to try to do this stage in a calm and methodical manner so that you  are able to carefully fill it in and check the requirements so that you make a successful application the first time. Then you will have the form processed and you will be able to get the money that you need much more quickly.

If you need money in a hurry then you may look to emergency loans to help you. However, you might worry that they will not be quick enough for you, so it is good to check this out first. Speed Varies Between Lenders It is worth noting to start with that the speed of a loan will vary between different lenders. Although emergency loans tend to be quick compared to traditional loans there will still be some differences. You will … Continue reading “How Quick are Emergency Loans?”

Is it Easy to Repay Online Loans?

There are lots of different loans and the repayments can vary. However, it is always important to repay the loan on time or else you will face getting extra charges and no one wants to pay more than necessary. Therefore, it can be wise to take on a loan which you feel will be easy for you to be able to repay. So, look at the loans that you are considering and find this out. For example, with an online loan you need to know how you repay and whether that will work for you.

How you Repay an Online Loan

An online loan is different to many other types of loan in the way that you have to repay it. Rather than repaying in multiple instalments, you have to repay everything that you have borrowed plus the interest and fees in one lump sum payment on the day that you are paid. This is done because the loans are designed to be a lump sum hand out to keep you going until you are next paid. However, it is made easier for you by the lender setting up a direct debit. This will be put in place so that the money will leave your account automatically and then you will not have to remember to pay it. This will make things a lot easier as you do not want to forget to repay as that will be expensive for you.

Will I Afford This?

However, as the money does go out in a lump sum, it is well worth asking yourself whether it is something that you will be able to afford. It is easy to think that you will be able to repay it easily because the money will be in your bank when you get paid, but you need to be wary and check a few things –

  • Check the pay will be there – it is a good idea to make sure that you get the date right and that the salary will be in your account on the date the payment goes out. You will need to make sure it is paid in or else when the payment gets taken the money may not be there and then you will be charged. The payment could be taken early in the morning or even at midnight, so make sure that your pay will arrive on time.
  • Check it is enough – check how much you are going to be paid and make sure that it will be enough to cover the repayment. We do not always get paid the same amount of money and so we might need to think about whether the next pay packet will be enough to cover the repayment.
  • Consider any other direct debits / standing orders – you may also have other payments going out on that day, which may mean that there will be less money left to pay the loan. Check to see what money is due to go out, you should be able to see this if you bank online pretty easily, but otherwise speak to your bank to find out.
  • Can you manage everything else? – It is also wise to make sure that you check that you will also be able to manage everything else that you will need to pay for. As well as the regular direct debits and standing orders, we also buy other things through the month such as food and petrol and we will need to make sure that there will be enough money left for this as well as everything else we have to pay for.

There are lots of different loans and the repayments can vary. However, it is always important to repay the loan on time or else you will face getting extra charges and no one wants to pay more than necessary. Therefore, it can be wise to take on a loan which you feel will be easy for you to be able to repay. So, look at the loans that you are considering and find this out. For example, with an online … Continue reading “Is it Easy to Repay Online Loans?”

Are There Big Differences Between Lenders of Online Loans

There are many different lenders and they offer all sorts of different loans. The lender industry is very competitive and there are lots of lenders offering each type of loan. This means that if you are looking for a certain type of loan, then you will have a lot of choice. This is great because it means that you will be able to compare the lenders and see which will offer you the loan which is nearest to what you need. However, it can also be tricky because you will need to think about what it is that you want from the lender and choose between them. You might even think that this is not worth bothering with because they are too similar. However, there are lots of differences between them and it is worth knowing what some of these are so that you can look at these features to help you to pick the best lender to suit your needs.

Cost

The main thing that most people will compare when they are looking at different lenders is the cost of the loan. This is a really good idea, because if you want to think about whether you are getting good value or money, you will need to know how much the loan will be costing you. However, many people make a mistake when they are doing this and just compare the interest rates of the loan. This is a problem because with an online loan, the interest rate may be quoted in two ways. You may see the Annual Percentage Rate (APR) which is just the rate of interest. However, you might see the Annual Equivalent Rate (AER) which is a rate that includes fees as well. Therefore, if you try to compare them you will find that the AER will be more expensive percentage wise, but once fees are accounted for it might not necessarily be the cheapest loan. Therefore, you need to make sure that you compare it carefully. It can be easiest to either use the calculator on the website of the lender to work it out or to ask the lender to do it for you. If you find out the cost in monetary terms, then this will help you to more easily compare it.

Fees

It is also worth finding out about the fees. Not the fees that everyone pays as they should be included above, but the fees that you will need to pay if you miss a repayment. These can vary a lot and if the costs are similar, then this could be a good way to compare lenders. Do not assume that you will never have to pay these fees and so you can ignore them. You never know what might happen and the difference in cost of these could be really important.

Reputation

For a lot of people the reputation of the lender is also important. They may want to use one that they have used before, for example, if they had a good experience or avoid one that they did not have a good experience with. It can be trickier if you have not used one before. Therefore, some people might ask others that they know what they think of them or perhaps look at online reviews to find out more. It can be a good idea to look at the lenders website as well to find out a bit more about them. You will then start to see what differences there are between them and it will help you to be able to more easily choose between them.

There are many different lenders and they offer all sorts of different loans. The lender industry is very competitive and there are lots of lenders offering each type of loan. This means that if you are looking for a certain type of loan, then you will have a lot of choice. This is great because it means that you will be able to compare the lenders and see which will offer you the loan which is nearest to what you … Continue reading “Are There Big Differences Between Lenders of Online Loans”

Can Anyone Use Payday Loans?

It is often the case that specific loans are only suitable for certain types of people or perhaps only even offered to certain people. However, loans do differ in whether they are restrictive and in what way. Therefore, it can be quite confusing knowing which loans you might be able to use or not use and it is a good idea to have an idea of this. This is because you never know when you will need a loan and unless you have a good understanding of them beforehand you could end up making a poor decision with regards to which loan to choose. With payday loans things are quite simple. There are just a few rules that people need to adhere to –

  • Over the age of 18
  • UK resident
  • UK bank account
  • Regular income

This means that almost everyone will be able to use a payday loan. However, it is a good idea to also be aware of some of the main features of the loan because that will enable you to judge whether you will find that it will be suitable for you. Of course, whether it is suitable will depend on the circumstances you are in when you need a loan, but it is good to be aware of the main features and then you will be able to keep this in mind when you are next looking for a loan.

  • Quick to arrange
  • Accepts those with poor credit scores
  • Repaid quickly

It is worth noting that there are some payday lenders which will provide you with the money that you need within a few hours of you sending off your application. This means that they are really handy if you have an emergency and you need money really quickly. There are also some that are available all of the time, so even if you need to apply outside of normal working hours, you will be able to do so. This can also be extremely handy, if you need money at night or at a weekend. They also do not look to hard at your credit score. Instead of deciding whether they trust you based on this, they will just lend you a small amount of money and then if you repay that successfully they will offer you more. This does mean that you may not be able to borrow much initially but it does mean that you will be able to at least get some money, which you may not be able to do from anyone else. You will repay the loan really quickly as you have to set up a direct debit to repay the loan in full on the next day that you are paid. This means that you will only be in debt for a few weeks or perhaps even a few days so you will not have to worry about being in debt for very long.

So, you will be able to see that there are some quite different features which are associated with payday loans compared with other loans. There will be variations depending on the specific lender, but it is good to have an idea of these. Then you will know whether it will be a good option for you when you are looking around for a loan. It is very likely that anyone will be accepted but it is important that they understand the loan and make sure that it is suitable for them. Then they will know that they will have a good borrowing experience and get good value for money from the loan.

It is often the case that specific loans are only suitable for certain types of people or perhaps only even offered to certain people. However, loans do differ in whether they are restrictive and in what way. Therefore, it can be quite confusing knowing which loans you might be able to use or not use and it is a good idea to have an idea of this. This is because you never know when you will need a loan and … Continue reading “Can Anyone Use Payday Loans?”