If you have a poor credit record then you will be limited in where and who you can borrow form. This can mean that you are rather limited and you may worry about who you can use. Thankfully there are some loans that you will be able to use but it is important to make sure that you know a lot about them so that you can decide whether they will suit you and your needs.
What is a Cash Loan?
A cash loan is a payday loan. It is available to most people as long as they are over the age of eighteen and a UK resident with a UK bank account and a regular income. The lenders will allow borrowers to have up to £1,000 until they next get paid and they will not worry about whether they have a good or bad credit record.
How Does it Work?
So when you apply for a cash loan or even a loan for bad credit, although it is a legal requirement for all lenders to do a credit check, the lenders will not mind if you have a poor credit score though. They are happy to lend to those that have struggled financially in the past. This means that they will just use the credit record to check your identity for the legal checks that they have to do. The amount that they lend you may not be the full amount that they have on offer. This is because they will often only lend a small amount to new borrower in order to test whether they can be relied upon to repay the loan on time. If it is repaid, then they will lend larger amounts.
The repayment of loan is different to normal loans as well. You will normally be expected to repay everything that you have borrowed in one lump sum but this will happen on the day that you are paid. This means that you should have the money available to repay it. However, you will need to check and be very careful to make sure that you can pay for everything else that you need as well as repaying the loan. If you do not then you will be in the situation where you need another loan and therefore it is wise to work out how you will be able to afford it before you take it out. If you cannot afford it, then thee can still be things that you can do. You can perhaps earn more money or spend less money. It can be a good idea to have a good think about what you can do with regards to these and what realistic options you might have. Come up with a plan for what you are going to do and then you will be able to borrow with confidence. It might be that you will be able to pay less for the items that you normally buy and that will mean you have more money for the loan. If you compare prices on everything you buy this should help you. You may also be able to cut back in some areas. You may also be able to pick up a few jobs, some freelance or temp work or things like this to get some extra money to put towards it.
So, in answer to the question, you will be able to take out a cash loan if you have a poor credit record. However, you will need to be very careful and make sure that you plan it carefully. If you cannot repay on time there will be extra charges and you want to avoid paying these if you can. Therefore, it can be a good idea to make sure that you plan in advance, to make sure that you will be able to afford it. Think about what you will be able to do to earn more money or to spend less so that you will be able to manage that repayment.