What are Bad Credit Cash Loans?

Do you have bad credit, but need money fast?

You’re not the first person to end up in this situation, and you won’t be the last.

While good credit takes a long time to build up, it only takes a few mistakes to destroy your credit score. Once you’ve suffered from a few missed payments, or you’ve failed to pay your loans off on time, you credit score begins to drop rapidly. After that, it’s a serious challenge to rebuild your reputation.

Unfortunately, the mistakes you make with your finances can haunt you for years when you have bad credit. After all, every lender, including your credit card providers, the people you turn to for a mortgage, and even emergency loan providers, checks your credit history. The FCA demands that loan providers always measure a credit score before they offer a cash advance.

More often than not, a bad credit score will make it difficult for you to get the money you need quickly. You may even find that you’re rejected from multiple “traditional” loans. Every time you apply for credit and fail, this leaves even more marks on your report.

So, how do you break the cycle and get the cash that you need?

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What are they?

A bad credit cash loan doesn’t have to refer to a loan where someone hands you a chunk of cash in person to use however you like. Many people use the term “bad credit cash loan” to refer to any loan that they can access as quickly as possible.

If you do need money in person straight away, then a good, bad credit cash loan provider might have a physical location that you can visit to acquire the money you need. This is often a good idea if you’re in an overdraft with your bank account and wouldn’t be able to withdraw all the money you’re borrowing straight away.

These loans are a useful way for people to borrow money fast if they’ve been refused access to credit from other direct lenders only. Importantly, sometimes, these loans are also useful for people who might not have a bad history with money but also don’t have much of a history at all. If you’ve never taken out a loan before, then your credit file might be thin. This can negatively affect your score and make it harder for people to determine whether you’re a risky investment or not.

How Are They Different?

Today, most loans are delivered through a wire transfer to your bank account. A bad credit cash loan can also often be picked up in cash. This makes it unique compared to most cash advance options. Additionally, it’s usually a lot easier to apply for these kinds of loans, because they’re intended for emergency situations. You can fill out a form within a matter of minutes and get your money within the same day.

Most importantly of all, these are specifically designed for people who might not be able to get approval for a loan from a traditional lender. Rather than jumping through hoops to try and improve your credit as quickly as possible, you can get the money you need now, and work on your score later.

In exchange for giving you the benefit of the doubt, most bad credit cash loan providers will also expect you to pay a slightly higher interest rate. What’s more, you’ll also need to deliver the money that you owe back to the company as quickly as possible. Usually, bad credit cash loans are designed to be delivered and paid off within a couple of months or less.

This gives the lender greater peace of mind. Even though they’re dealing with someone who has a poor credit history, they know that they’ll also be recouping the cash that they’ve offered as quickly as possible.

How to Apply

Usually, applying for a bad credit cash loan is easier than you’d think. Many providers offer the opportunity to apply in person, online, or over the phone, depending on your preferences. You also won’t have to answer nearly as many questions with a bad credit loan as you would with a standard personal loan.

Importantly, taking out a bad credit loan doesn’t mean that you can access the money that you need without any credit check at all. If you see a lender promising no credit check, you should be wary. After all, the Financial Conduct Authority that regulates loans demands that all companies check the credit of their borrowers before giving them money.

The good news is that cash loans or payday loans with no credit check can be offered regardless of whether you have a good history or not. Usually, your loan provider won’t consider your credit rating as much as your current income, and how easy it is for you to pay back the money that you borrow.

The great thing about bad credit cash loans is that just because you have a bad history, doesn’t mean you’ll be automatically declined when you desperately need a loan. Companies that offer bad credit lending options are willing to consider your application regardless of what happened in your past. What’s more, because of the regulations set out by the FCA, there’s a cap on how much they can reasonably charge you when it comes to things like interest and late fees.

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Are There Benefits?

Anyone over the age of 18 who can prove that they are a resident of the United Kingdom should be able to apply for a bad credit cash loan. What’s more, your chances of success are very high. There are even companies out there that specialise in applications from people with “very bad credit.” This might be the situation that you’re in after you’ve suffered from a CCJ or bankruptcy.

Bad credit loans are advantageous because they open new opportunities for almost anyone. With this kind of lending opportunity, you can:

Receive cash in 15 minutes or less

Spend your loan on any purpose that you choose

Access loans without security or guarantors

Finish your application fast with limited questions

Get the money you need in cash from a local provider

If you’re in a sudden financial crisis, then a bad credit cash loan can be a quick and simple solution to your problem. There’s no need to worry about adding more black marks to your credit report with rejections from other loan providers.

In some cases, you might even find that taking out a bad credit loan actually helps you to improve your credit rating in the long-term. If you can pay back the money that you borrow quickly, then you can show lenders that you can be trusted.

Is a Bad Credit Cash Loan Right for You?

If you’re successfully approved for a bad credit cash loan, you can use the money that you borrow for any reason that you choose. Most of the time, however, it’s recommended that you only use a bad-credit loan for emergencies. If you’re looking for a loan that you can use to consolidate your debts or pay for a new kitchen, there are other lending opportunities that might be easier for you to access.

While this type of loan isn’t right for everyone, they do give consumers an excellent opportunity to get the cash that they need quickly for an emergency situation. If you’ve been refused credit before, then you’re better off applying for a bad credit cash loan straight away, as this will stop you from leaving any additional marks on your report.

A bad credit loan will also begin to rebuild your credit score as you consistently meet your monthly repayments or pay all of your borrowed cash back on time. What’s more, because they’re available either in cash or via your bank account, these loans are often a speedy way to get your hands on money when you don’t have time to wait for support. You can even choose an instalment loan if you need a while to pay your money back, and you don’t want to have to deal with finding all the cash required on your next payday.

Comparing Your Bad Credit Loans

Remember, just because you’re dealing with an emergency situation, and you don’t have the best credit, doesn’t mean you should settle for just any lending opportunity. There are plenty of comparison websites available to ensure that you get the best deal for your loan.

Comparing your options by looking at things like interest rates, fees, and other important factors, ensures that you’ll have the best experience possible from your loan provider. You can even improve your chances of paying your loan off faster by working with a lender who delivers a lower interest rate and fewer extra costs.

Remember to look at the reputation of your provider too. When you have a bad credit history, it’s a good idea to choose a lender you can trust to deliver excellent service every step of the way.