Payday Loans and Bad Credit. However, that is not the case: For the most part, payday loans aren’t treated any differently in bankruptcy than any other unsecured loan,” writes attorney Dana Wilkinson on the Bankruptcy Law Network blog. And, if you repay your loans on time, you may be eligible for perks such as higher loan amounts and lower interest rates as you begin to climb the LendUp ladder.

Lenders base some of their decisions on the contents of your credit file, which they request from one of the UK’s three credit reference agencies. If your loan is approved before 9pm CT on Friday, you can expect your funds on Monday. If, however, you have just been irresponsible with your money and there’s no reasonable explanation, it can be harder to convince a lender you are now creditworthy.

Get a copy of your Credit Karma credit report and keep it. After complaints are started, sometimes loans are deleted and you may want the full report if you later have to go to the Ombudsman. However this does not mean that all lenders will reject you when it comes to applying for a loan as there are some loans that can be approved without the need of a good credit history.

We will not lend to people who we believe do not have the resources to comfortably make their loan repayments. You may have history of late or missed payments on other financial accounts or have County Court Judgments (CCJ’s) against your name, entered into an Individual Voluntary Arrangement (IVA) or made yourself Bankrupt.

If more of your monthly payment is applied to the principal and not the interest, as is the case with shorter loans, then there is less of a chance of you owing more on the principal than the car is worth. You should try to get a regular loan from a bank or lending company if you can.

There are many reasons our customers find themselves needing a short-term loan. How banks will consider applicants who have used a payday loan in the past will depend on their credit history as a whole. The content provided on MoneyWise is information to assist users become financially literate.