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23 Aug
Bad Credit Loan - Conception

Bad Credit Loan - Conception

Thousands of people are searching the internet each day for " bad credit loans" to help them overcome short-term financial challenges.

The term "payday loan" historically meant a short-term loan to be paid back on your next payday. However, the concept of payday lending in Australia is now more broadly defined as high-cost short-term credit.

If you are looking for a bad credit loan and want more information before you submit an online loan application, MyCashOnline has you covered.


1. What is 'Bad Credit'?

Bad Credit is a term often used to describe the financial situation of somebody with a history of poor financial management. People who have an adverse credit score are likely to have missed credit payment obligations (such as a loan, utility bill, or credit card).

Essentially bad or ‘adverse’ credit is the main reason why some borrowers find it difficult to obtain finance from high street banks or mainstream lenders.

By definition, bad credit is an indication to loan providers that one borrower is riskier than another.

2. Should I Apply For A Bad Credit Loan?

Bad credit loan products and quick loans are designed to meet urgent cash needs. They are one of the few short-term loan products available to people with a poor credit history.

The first question you should ask when considering any form of credit is: " Can I afford to repay my borrowing in full and on time"?

If you take out any type of bad credit loan, it is critical that you always borrow within your means and repay your loan commitments on time.

High-cost loans designed for people with less than perfect credit scores normally have high-interest rates, which need to be carefully considered before you commit.

Although a bad credit score could be the result of financial mistakes made in the past, it can also be the result of not having any borrowing history. Either way, a history of poor credit management can often be an obstacle to obtaining a personal loan.

3. Bad Credit Loans - Credit Brokers

Using an online credit broker such as MyCashOnline can be a quick and efficient way to find the best bad credit loan. One of the main advantages of applying for a loan with MyCashOnline is that we scan the market in a few minutes and return the lender that will give you the best deal in terms of APR and acceptance rates. You, therefore, have a better chance of finding a loan and getting a lower APR in the process when you apply through us.

4. Bad Credit Loans - Direct Lender

Any form of personal borrowing should be approved and issued from an FCA authorized direct lender. A bad credit payday loan product is no different.

If you are confident about your credit score and believe you should be approved by most bad credit loan providers, you may find it useful to compare your lending options.

Fortunately, most direct lenders provide 3rd party customer reviews to help you make an informed decision.

5. Bad Credit Payday Loans - Frequently Asked Questions

Can I get a payday loan with bad credit?

If you have a bad credit score you may still be able to take out a payday loan. All forms of high-cost short-term lending are designed to help meet the needs of people with lower credit scores. However, each loan application is looked at on its own merits and there are no guarantees you will be approved.

Will my bad credit prevent me from being approved?

If you have a very low credit score and have a history of missing your loan repayments and other credit commitments, it could mean your loan application is not approved.

Remember that your credit score can be improved if you take measures to ensure you always meet your credit obligations in the future.

Will my payday loan application be approved if I have bad credit?

Payday loan approvals depend very much on specific circumstances.

Any provider of high-cost short-term finance has to make sure that the loan is affordable. They will look at your earnings and subtract all your expenses. These include:

  • Rent/mortgage
  • Utilities
  • Transport
  • Food
  • Credit expenses
  • Any other recurring expense

The amount remaining needs to be enough for you to be able to repay your loan commitments each month.

How quickly will my loan be paid out?

If your bad credit loan application is approved, the money could be in your account in minutes if your bank accepts "Faster Payments" Speak to your bank to find out if your account has this facility.

Payments are not always processed 24/7 so if your bad credit loan application is approved late at night, it could be the next morning before you receive it.

Does having a bad credit score mean I will be automatically declined?

No, having a bad credit score doesn’t mean you will be automatically declined. However, if your credit history shows particularly poor money management it may affect the amount you could borrow and the interest rate of the loan, or you could possibly struggle to find a direct lender willing to approve your loan application.

Will my poor credit profile affect my loan?

A poor credit file may affect your loan. A low credit score may impact the interest rate you are offered, with a higher rate of interest being offered if the lender feels you present a high level of risk. If lenders feel that the risk of the loan not being repaid is too great, they may decide not to offer you a loan.

Can I get a bad credit loan with no guarantor?

Yes, you can. Bad credit loan providers do not require a guarantor unless they are specialist guarantor loan providers. When you take a guarantor loan, the credit history of the guarantor is usually what matters to the lender. A bad credit loan assumes it is you who requires credit and therefore, a guarantor is not normally required.

Does it matter how bad my credit is?

Your unique credit score will be an important factor in lending decisions. If your credit score is particularly low, it may prevent you from obtaining any kind of finance. This is because lenders assess the risks associated with providing money. If you have a long history of missed payments, it could be a preventative indicator. To get a better understanding of your credit report why not try a free credit reporting website such as noddle. The better your credit score, the better your chances are.

Does taking out a payday loan simply bad credit?

Not necessarily, people often apply for cash loans and short-term finance when they have a cash flow problem. However, generally speaking, most high-cost credit options are applied for by applicants with lower credit ratings. Most lenders will take this into consideration.


If you are really in need of quick cash for personal expenses, apply for a bad credit loan with My Cash Online today.

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