Bad credit payday loans or short term loans could provide quick cash to customers in financial emergencies, even if they have a poor credit history. Bad credit payday loans are available for those who may have had difficulties or made mistakes when managing their finances in the past, but who need a quick cash injection!

Wizzcash can provide payday loans to customers with less-than-perfect credit. We understand that it can be more of a challenge to get approved for loans when you have bad credit. This is because many lenders consider these borrowers a higher risk, but it’s set out like this by the governing bodies and regulators within the finance and payday loan industry to help ensure you can afford a loan you might take out.

What Role Do Payday Loans Play For Those With Bad Credit

So many reports and financial studies repeatedly highlight that problem debt is more persistent amongst the poorest people. As a result, this demographic of people is likely to have a bad credit score. These are also a large section of the customers that apply for bad credit payday loans, needing the financial boost to cope with unexpected costs because they do not have a financial cushion to rely on. Reports highlight that without payday loans, many low income households may have had to go without essentials (27%) or tried to borrow from family or friends (37%).

Wizzcash might be able to offer high cost short term credit to customers who need a financial boost, even if they have a bad credit history. However, we check all applications and abide by our lending criteria. We would always recommend asking your loved ones for help before seeking a loan. Bad credit payday loans do have a useful and helpful place within the consumer credit market, as they are able to provide access to finance to people in need. Since the 2015 FCA regulations were implemented across the market, 57% of consumers that are likely to use a payday loan agree that they are now harder to access. Approximately 90% of recent consumers also considered using short term credit “convenient”.

Notably, and in line with the Financial Conduct Authority’s predictions, since they began regulating the market, they have restricted access for bad credit payday loans, with the intention of protecting those who may be vulnerable to debt cycles or harmful financial behaviours.

Interestingly, 12% of consumers cited that if they could not get access to a short term loan because of restrictions they would have cut back on other forms of spending; we talk a lot about how you can do this over on our blog. The same percentage of consumers stated that they would just not buy what the loan was intended for. This data could suggest that these loans are still being used for non-essential purchases.

Ultimately, bad credit payday loans have a purpose and can be useful to consumers, particularly those suffering from the poverty premium or experiencing situations beyond their control. Regulations have excluded a large portion of customers from re-buying this kind of loan because it is not sustainable, but these consumers are still likely to need access to credit. Lenders are now obligated to provide information on how to get debt help so that consumers might have access to better information and resources that could help them on a long term basis.

Wizzcash is a responsible lender and work within the FCA regulations. This means we are unable to lend to customers who look vulnerable or cannot show that they can afford the cost of repayments. If we are unable to meet your request, we could still connect you with alternative lenders or services that could help you.

Our Attitude To Bad Credit Payday Loans

Here at Wizzcash, we do not believe that your access to emergency financing should be solely decided by your credit history. As with all our loan products, we practice responsible and transparent lending. This is because we believe all our customers deserve to make informed decisions about their finances, as taking out a payday loan could negatively (and positively) impact your credit file in the future, depending on whether you meet the repayment schedule.

We tell customers how much the borrowing fees are, how much interest you will be charged, what the period of repayment is and what your total repayment amount will be. We always try to be as clear as possible with this every step of the way, just to make sure you’re happy to continue.

Wizzcash.com is a payday loan direct lender. This means if you have a successful loan application with us we will communicate and lend directly to you. In the event that we are not able to help you, we are also a broker and we will link you to panel of consumer credit companies who might be able to offer you: loan products, with loan terms from 1 to 36 months, loan comparison websites to give you access to the comparison of loan products or credit reports companies to help you understand credit ratings and make informed credit decisions. We will never pass on your card details to any other organisation.

Understanding Your Credit Rating Before Applying For Loans

Credit ratings are determined by a number of variables; a key factor relates to how well debts have been repaid. People who are new to borrowing will not have the history of successful repayments needed to obtain a good credit rating, so will end up with a lower credit score (popularly termed a bad credit rating).

You might be applying for a bad credit payday loan, thinking you have a poor history, but the reality is you just haven’t borrowed money before. This is awkward because you might be in a great position to repay the money you borrow, but your file just doesn’t tell lenders that. It’s important to know where you are before you apply for a bad credit payday loan, as cheaper alternatives might be available to you.

Loans which fall into arrears, missed rental payments or failure to pay the instalments on a hire purchase agreement may all result in notes being made on an individual’s credit file, which could adversely affect their credit score. In these cases, it’s important to note that you may not be able to find a lender willing to provide you with a loan. For this reason, you should work on improving your credit score prior to applying.

When you apply with Wizzcash for a payday loan with bad credit, it is important you know that you might be subject to a credit check. This might affect your credit score with what is known as a ‘credit inquiry’. Credit inquiries make up an anticipated 5 – 10% of your credit profile and are likely to only show for a year or so. However, lots of inquiries for a payday loan with bad credit could be worsening your situation and making the loans available to you more expensive as other lenders will see you are very actively trying to obtain credit. This may be viewed as signs of financial difficulties.

How Wizzcash Can Help You With Bad Credit

Wizzcash are proud to help customers when they feel they have exhausted all other options and they are experiencing something that needs urgent attention. Trying to tackle these situations without the necessary funds is stressful, as we have already established some demographics rely on the kind of credit we can provide. Emergency loans, even with bad credit could be available from Wizzcash, but you will still be subject to our lending criteria Before you apply for a loan:

  • You will need to be over 18 years old
  • You will need to be a UK resident
  • You will need to be able to show £750 take home per month

It is possible to get a payday loan even if you consider your credit score to be less than perfect, but we are still only able to lend to suitable applicants and work with minimum requirements. This means we cannot offer any guarantees that you will be approved for a loan with bad credit, but we do try to help everyone , however we cannot lend to you if it means putting you in financial risk or if we see you will not be able to make repayments.

Wizzcash.com is a payday loan direct lender. This means if you have a successful loan application with us we will communicate and lend directly to you. In the event that we are not able to help you, we are also a broker and we will link you to panel of consumer credit companies who might be able to offer you: loan products, with loan terms from 1 to 36 months, loan comparison websites to give you access to the comparison of loan products or credit reports companies to help you understand credit ratings and make informed credit decisions. We will never pass on your card details to any other organisation.

 

Bad Credit Payday Loans – Your Options and Alternatives

Bad credit payday loans are considered a last resort option. There are a couple of options you could consider before you apply. A personal loan might be a more suitable or affordable option. Of course, there are pros and cons when taking out any loan, but the important things to know about a personal loan is that you probably will need to take out or borrow a higher amount, whereas payday loans are small loans. They also don’t typically operate like most our instant loans because they could take a little longer to reach you. On the other hand, the APR will be lower (meaning you pay less over time) and the costs can usually be spread over a longer period of time, which might be more manageable and realistic for you to repay, especially if you have other financial demands to meet.

Alternatively, applying for a payday loan with bad credit might be daunting to you, or are not right for your needs, perhaps because you have had bad experiences in the past. Some might prefer to discuss what they need with friends and families to see if they can raise the money that way. It might be a little awkward, but you could avoid any fees or interest charges altogether.