- Bad credit payday loans; for lenders the most important thing is your ability to pay back the money on your next payday,
the emphasis in on your income, not credit history.
- Fast approval; you can have the money on the same day you apply.
- Convenience; whatever your emergency, these services will provide you with the needed cash until payday comes.
- Payday loans are unsecured, therefore they pose no immediate risk to your property; they are available to tenants and homeowners.
- There are many lenders to choose from and most are easy to find, this means you don't have to deal with loan brokers;
our comparison consists of direct payday lenders only, no brokers.
- Although they are convenient when you need the money, a major drawback is the fact that you have to pay the money back in one instalment,
this can be a problem if your salary is not big enough to cover the loan as well as your other expenses.
- High interest; most lenders charge around £25 for every £100 borrowed, this is a much higher Annual Percentage Rate (APR) if compared to normal loans.
However, considering the fact that payday loans are short term, the cost of borrowing is not that different from normal loans.
1. Friends and family
Have you considered borrowing from your friends or family members? If one of them can lend you the money you need, that would be better than a payday loan;
your friend is unlikely to charge you interest, they also understand your needs better than a financial institution can.
2. Unsecured loans:
Payday loans have their advantages but constraints such as required payoff within a month and the low borrowing limit might not work for some people.
If that is the case then an unsecured loan could be a suitable alternative; limits are higher, interest rates are lower and repayments are spread over years.
Even if you have bad credit it's possible to get a loan thanks to the many bad credit lenders.
3. Pawnbroker loans:
Pawnbroker loans are secured against items you own; this can be jewellery or electrical devices:
You deposit your items in order to get the loan, once you repay the money you get your items back.
The advantage is that you might get better interest rates since the loan is secured against something unlike a payday cash loan.
Pawnbrokers primarily operate on the high street and can be found in town centres across the UK.