Poor credit ratings are a plague for many people, temporary work contracts, the recession and the rise of living costs have all had a massive impact on how people live and how they pay for the basic requirements of life.
A poor credit rating means that many high street lenders will not offer loans or overdrafts to those who have lack of credit history or people with a poor credit score. Companies that offer payday loans will generally look at fewer factors when assessing an application. They will concentrate more on the income of the applicant and their ability to pay it back within a reasonable time, rather than their current assets and credit history. However most pay day loan companies will not accept you if you have had a CCJ in the last 12 months, have been declared bankrupt, have no bank account or are on a debt management programme.
Missing, even one payment can be detrimental to your credit score long and short term, so payday loans have become increasingly popular to cover monthly costs. They are a great way for people to cover everyday expenses that occur earlier in the month before the pay check comes in. It’s a way of spreading the monthly costs of living without reengaging on the bills. Therefore payday loans can be a great option for individuals with a poor credit history, the interest is usually higher but the terms offer more flexibility.