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Loan with bad credit

If you find yourself in need of a loan but bad credit histories follow you around, loan companies may be less than willing to give you money. But what if you have a stable job and a regular income? In these situations, even if you know you can pay the loan back, your credit rating likely leaves a lingering black mark on your payment history. Thankfully, there is an option to consider that doesn’t involve approaching unscrupulous lenders.

Payday loans companies are a relatively new lending option in the UK. The way they work is simple: you show them proof that you are employed and the day at which you will next be paid, but request the pay in advance from the payday company. They will then instantly lend you this amount into your bank account, under the condition that you pay it back with interest.

Those needing a so-called ‘loan-bad-credit’ option will find that payday companies have their pros and cons. On the one hand, they are very useful during times when you find yourself getting paid, only having to fork out your entire paycheque on an unforeseen bill or charge that leaves you with nothing for the rest of the month. As long as you know that you can afford the interest rate charged by the payday loan company, you can rest safe in the knowledge that approaching the payday company is in your best interests.

On the other hand, if the interest rate is high then you run the risk of getting into further debt when you settle the payday company’s bill. Indeed, there have been cases known where borrowers have found themselves caught in an ongoing cycle of borrowing from a payday loan company and ending up in even greater debt, simply because they couldn’t afford the mounting interest rates.

When looking to obtain a loan with bad credit, always ask yourself: can I afford the repayments and the interest rate, and would I be better off with or without the loan?

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