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.
Decide what you need to borrow
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.