Bad Credit Payday Loans in Manchester
Warning: Late repayment can cause you serious money problems
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Representative Example: Representative 1286.98% APR on a loan of £300.00 with 5 monthly repayments of £101.03 Total amount repayable £505.13 Annual interest rate (fixed) 290%
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Having a bad credit rating really makes your life tough. If you have a bad credit rating, it is most likely that you are financially unstable too. Now in such cases, what would you do if you suddenly fall into a financial trouble and really need a few hundred pounds urgently? At such times, it becomes very difficult to procure a loan given the bad credit record that you carry with you. This makes it very hard to deal with financial emergencies. But not anymore.
Bad credit payday loans in Manchester are a consideration for those who have defaulted on their previous loans and have ended up badly damaging their credit scores. These loans are often available to such borrowers just like they are for the normal borrowers. These loans are approved quickly and really come in handy during hard times.
Why do the payday lenders provide loans to people with poor credit scores while the banks don’t?
This is an important, but a very easy question asked by the borrowers who are new to payday loans. When banks and other financial institutions deny loans if your credit scores are bad, then there should be no reason for the payday lenders to give you the loan as well, right?
The other financial institutions know that a person with bad credit ratings is not financially stable and has defaulted on previous loans, thus it is more likely that he will again default on his loan and will not be able to pay it back, thus ending up in more financial troubles and legal hassles. Thus, they reject their applications.
But the rules and regulations of payday loans are different. Bad credit payday loans in Manchester are given out only to those borrowers who are steadily employed or a steady monthly income from a steady source. The main things the lender is looking for is that the loan is affordable and that you have a recent history of loan repayment. In these circumstances the loan you failed to pay 3 years ago may be overlooked.
Do the payday lenders reject people with bad credit ratings?
Though bad credit payday loans in Manchester are sometimes given to people with lowercredit ratings, a basic financial check is done by the payday lenders. These checks mostly involve having a look at your previous loans and records. Now if you have defaulted on conventional loans or any other credit advances, then it’s not a big deal to worry about. But if you have defaulted quite a few times on payday loans, then it may be hard for the payday lender to trust you with the loan and he may deny you the loan on his sole discretion.
Also, the lender would do the same if you have any previous payday loans or other loans outstanding, as you would be in a tight situation and paying back the loan on time will be almost next to impossible for you and you will end up defaulting again. The reasons why payday lenders do this is that they are bound by FCA regulations, which state that the lender will have to practice responsible lending and will not do anything which would lead the borrower into debt and more financial troubles. Hence, responsible lenders do not give payday loans to people who are most likely to default on payday loans and end up in financial hassles again.
What if the borrower defaults on the payday loan as well?
A good thing about the bad credit payday loans in Manchester is that the FCA has set a lot of regulations for the welfare of the borrowers. The payday lenders are bound to help the borrower avoid debt. According to the FCA regulations, payday lenders will help out borrowers in paying back the loan and not fall into anymore financial troubles by taking the loan.
So even if you have a bad credit rating and you default on a payday loan, the payday lender will not treat you badly. On the contrary, the lender will help you out and will chart a different payment plan especially for you so that you can pay back the loan in instalments without convenience. Also, if you think that you are going to default on the loan, you can ask the lender for help and they will do the same.