Life can play cruel tricks upon you, we all know this. You might have gotten sick and are in the need to pay for some medical bills or maybe it is the end of the months and your washing machine breaks, yet you have no money left to pay for the repairs.
Now if you have a perfect credit history or potentially no credit history at all, then it would be easy for you to borrow some money, for example from a payday loan lender. But how can you raise some quick funds if you have a terrible or a not so good credit score?
Loans for people with poor credit are becoming more and more common around online lenders. Many lenders who are offering payday loans are also offering such loans for people people with poor credit these days. You will, however, not find any such loans with your normal bank or building society (should you live in the UK).
You also need to be aware that if your credit history is bad and you are looking to take out such a loan you might have to pay higher charges than what somebody with a good or no credit history might have to pay. This might seem unfair to you but you need to take into account that you are within a potential risk group and that lenders are in the business to make money and not to give out charity. This means that if they were to charge you the same rate as somebody who has a good credit score they would most likely loose money as a lower credit score means that the potential chance that you will default on your loan is also higher. Don’t worry though, most of the time the difference in interest rate is not too high.