Payday Loans and Bad Credit
2012
If you have a low credit score you are probably a victim of circumstance. Missing a payment, paying late while you waited for money to hit your bank account, there can be a lot of reasons. It may not even have been your fault. Having to run our finances in the good times is pretty straight forward, save or spend just make sure you have enough just in case. Now times are tough every penny counts so dealing with your finances day to day is often a real struggle for lots of people in the UK. It is so easy to pick up bills, responsibilities and financial obligations that the repayments can just keep piling up and the slightest miscalculation or mistake can result in a damaged credit history.
The reason this is such a big deal is simple. High Street lenders are themselves in trouble, and when they find themselves in trouble they try to limit their risk. This means they will only lend to people they are absolutely certain will repay them. This is why having a damaged credit rating is often a problem and can lead to rejections when you apply for an overdraft, loan or mortgage. Of course losing this access to cheap credit in turn can cause people to miss further payments meaning their credit score degrades further. This is just the cold harsh reality of finance in the UK today. I haven’t even started to discuss the personal issues this can cause whether it is the after effects of stress or the loss of assets. Ultimately the final nail in the credit score coffin is the CCJ gained as a result of failure of payment.
There are loans designed to help people who are turned down by the high street and these can help people ensure they don’t miss payments, or worse. One of the major and most popular ones are of course are payday loans. Because they rely solely on your disposable income when you are paid and not your credit history they are a gateway to borrowing in more ways than one. They are usually paid out within 1 day and often in under a few hours. The short term loan may also help you repair your credit rating as you prove to companies like Experian that you are capable of repaying a loan in full and on time.
