Debt problems? Get free confidential advice from StepChange Debt Charity on 0800 138 1111.
Your loan may be automatically extended if you don't repay it in full, this may impact your credit score and cost you extra in fees and interest. Failure to pay could mean you face collection action. If you already have a payday loan don't take out another as cheaper options are available; our guides explain.
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Here is some important information about the practices used by many of the payday lenders we list on money.co.uk. To find out about the specific practices and charges applied by your chosen payday loan lender you will need to check their website and read their terms and conditions carefully before you apply.
You should always make repayments on your payday loan on time and in full. The interest rates and information we list in our comparison tables assume that you will do this. Payday loan lenders each have their own policies regarding non-payment, this affects the additional interest and charges they apply and the debt collection practices they use.
If you do not make your agreed repayments on time then you are likely to be charged extra interest and additional fees. Some lenders will also take legal action if you repeatedly fail to repay. How much extra you are charged and the collection practices used for non-payment will depend on the payday loan lender you have borrowed from; you should check this before applying. Your payday loan payments will be taken out of your account automatically. However, if you do not have enough money in your account to cover the payment you are likely to incur extra charges. You are also likely to be charged interest on your balance at that point; this may be more than the original amount you borrowed.
If you think you may have difficulty making a repayment you should contact your lender immediately. Failure to do so could impact your credit score and result in additional charges.
Non-payment will also be recorded on your credit file. Repeated non-payment may have a negative impact on your credit rating and affect your eligibility for future borrowing. You should always make repayments on time and in full to avoid any repercussions on your credit rating.
It is not advisable to renew or extend a payday loan. However, if you do need to you should contact your lender to arrange an extension before they try to take payment. Most payday loan lenders will charge you an extension fee and additional interest on your total outstanding balance. Some lenders will automatically renew or extend your payday loan if you do not make an agreed repayment. This is likely to cost you extra in additional fees, interest and charges. You should check your chosen lender’s approach to payday loan extensions before you apply.
If you fail to make an agreed repayment on a payday loan most lenders will contact you by phone, post or email to rearrange your repayment. If you repeatedly fail to make repayments then they may use collection practices or take legal action. You should familiarise yourself with the collection practices of your chosen payday lender before you apply.
If you are struggling to make repayments on a payday loan you should contact your lender right away. You can also get free advice from debt charities like StepChange, Citizens Advice Bureau and the National Debtline.
Borrowing money when you have a poor credit history can be difficult, especially if you are looking for a loan in a hurry.
However, there are a number of bad credit payday loans now available in the UK which could lend you money at short notice even if you have a bad credit record.
Here's how to compare instant loans for bad credit to ensure you're getting the cheapest deal on your borrowing possible.
Instant loans for bad credit may appear to be a convenient way to borrow money but they are also very expensive and unlikely to be a long term solution if you're struggling to manage your finances.
Even if you have a bad credit record there may be other alternatives which could be better for your finances. Read our guide How to Borrow Money With Bad Credit to run through your different financial options.
Before you begin your search for a bad credit payday loan you need to decide exactly how much you need to borrow and how long you need to repay the money.
Due to the high cost of bad credit payday loans try and limit the amount you need to borrow to as little as possible.
It also makes sense to choose a loan period that will enable you to repay your debt in full within the shortest time frame to keep your costs down.
Once you've decided how much you need to borrow and how long you will need to pay your loan back you will need to look for the cheapest payday loan possible.
The main factor that determines the cost of any payday loan, including a loan for bad credit applicants is the interest rate.
All loan lenders display a representative APR which is an example of the interest your might pay over the course of 12 months.
However, as you are looking to borrow over a much shorter time scale you can also compare prices based on what you would have to repay if you borrowed £100.
Although you should avoid extending any payday loan beyond you original term, you may also want to check the extension fee, which is charged should you be unable to repay your loan on time. This is something you should avoid doing if at all possible as it's likely to cost you a significant amount.
Payday loans can give you enough money to tide you over till your next pay cheque clears, but at great cost. We look at whether it's ever worth taking one out, and if so, how to find the one that'll give you the cheapest cash.
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