Bad Credit Payday Loans 

Apply for bad credit payday loans with Weeloans

APPLY HERE: Application Form

Payday Loans are traditionally loans that are provided to those who have adverse credit files.

Reasons for a bad credit history

There are varied reasons as to why people have a bad credit history and we can explore them here:

  1. No credit history at all. Those who are just starting out, be they young people or those who have relocated, immigrated etc and who have no credit file with the local financial services will have empty history’s and Lenders will see them as an unknown risk. By default, this errs towards negative in underwriters algorithm’s.
  2. Late repayments. Many people have at some time or another been unable to make a debt repayment on the due date and this is recorded on their credit file and scores negatively.
  3. Paying the minimum on your credit card. This one seems odd but makes sense when thought through because although the repayments are being made, and on time, paying the minimum suggests to the Lender that the customer is at their limit and cannot afford more.
  4. Identity theft. Stolen identities can be used to get credit that is not repaid and this leads to unjust negative scores.

All of the above affect the credit file but can be repaired and none are deal-breakers for Lenders who specialise in bad credit loans.

There are, however, some instances that will give Lender’s pause and make the risk too great:

5. CCJ’s and Bankruptcy. These can exclude many Lenders from wanting to offer a loan although some will still take the risk providing they can be satisfied that the CCJ’s are distant and unlikely to be repeated but bankruptcy notices are more difficult to deal with. 

Recommendation for those seeking bad credit payday loans

The data on a credit file remains for up to 7 – 10 years and so it is very important that it does not contain anything untrue.

Experian Knowledge Base

Check your credit file regularly and make sure it is accurate and inform the credit reference agencies immediately if you see any anomalies.

The three main Credit Reference Agencies and their contact numbers are:

  1. Experian (888) 397-3742.
  2. Transunion (800) 916-8800.
  3. Equifax (866) 349-5191.

Actions to improve a thin credit file

  1. If you do have debt on your credit card, pay a little more each month than the bare minimum.
  2. Take out a credit-builder type loan and repay it on time. These loans are with Lenders that inform the CRA’s as soon as repayments are made.
  3. Pay off any outstanding debt.
  4. Hire a credit-repair company to fix it for you.
  5. Wait until the credit file is automatically renewed which is usually after 7 years.

If unsure about making an application, don’t be because to apply is free and if you only do so with a Lender that uses a ‘soft search’ any decline will not be recorded on your file.

Soft searches are where Lenders use their internal processes to review an application and, if everything looks good, they will ask for your permission to then proceed with a full search.