Payday loans are short term personal loans to be paid back when the person who has received the loan is next paid. Payday Loans UK only provide one sort of payday loan, and they work the same for everybody. Whether the person who wants the loan has good credit or whether they have bad credit, they can get a payday loan if they can meet the conditions of the loan. And the main, most important, of those conditions, is that you have a job, it pays every month, and it pays above a certain amount. That being the case, the credit rating does not matter.

Regardless of your credit rating, you can get a short term loan from Payday Loans UK.

Is a Credit Check Performed?

At Payday Loans UK we offer no credit check payday loans, meaning that no credit check is performed. This leads some people to believe that these are loans for people who will not necessarily be able to pay them back, and provided by lenders that are hoping that this happens so that the interest rate builds up, leading to a substantial amount that will be due to be paid back. This is far from the truth however. There is no credit check performed because that has very little bearing on whether or not the loan will be paid back. If somebody meets the necessary criteria, that is, they have a permanent job that pays monthly, then they will have the capability to pay it back, barring any other commitments for the money. If there are known commitments for that money, then obviously the payday loan should not be taken out, but a credit check would not reveal that piece of information.

The advantage for the person taking out a payday loan that no credit check is performed is the fact that it means the application process takes a much shorter amount of time. The loan will usually be able to be approved within minutes, and can be in your account on the same day that the application is made.

Are Payday Loans Only for People with Bad Credit?

The other wrong assumption made by people who believe that the lack of a credit check means that payday lenders are irresponsible is that payday loans are only suitable for people with bad credit. In actual fact, there is no other sort of short term personal loan available for people with good credit to be able to get other than a payday loan. Yes, there are long term loans from banks, but if financing is needed very quickly, and can be paid back the following month, payday providers are the only ones offering this service. The closest that banks come to doing this is with the unauthorised overdraft, but their charges truly are quite extortionate and can quickly get out of control. At Payday Loans UK all of our charges are upfront, so that you know exactly when, and how much, you will have to pay back before you take it out.

Therefore the answer to this question is no, payday loans are not only for people with bad credit, they are very useful to people regardless of their credit rating.

Tags: bad credit, credit check, credit rating, credit report, Payday Loans, Payday Loans UK, short term loan

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Ken Heading keeps up to date with all the financial news in the UK, particularly as it affects payday loans, and enjoys writing on this subject.

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