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Getting a loan

They say it’s fairly easy to get payday loans but when you want one where are they.......(well I do have bad credit)lol

Comments

  • Hopefully, they're nowhere.
  • cymruchris
    cymruchris Posts: 5,550 Forumite
    Eighth Anniversary 1,000 Posts Name Dropper Photogenic
    What amount of money do you need over what timescale? Is it for general living expenses or an emergency? 
  • They say it’s fairly easy to get payday loans but when you want one where are they.......(well I do have bad credit)lol
    Some pay day loan companies have gone belly up because many borrowers don't pay the loan off. Even with sky high interest rates, so many fail to meet their obligations that the business model is often no longer viable. 
  • DCFC79
    DCFC79 Posts: 40,611 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    They say it’s fairly easy to get payday loans but when you want one where are they.......(well I do have bad credit)lol

    Dont go down that path, it will only end up going bad.
    Why is it you want a pay day loan ?
    Would it be a regular occurance or just a one off ?
     Maybe the debt free wannabe board would be more suited to the post, you can post an soa and posters willl help.
  • sourcrates
    sourcrates Posts: 30,588 Ambassador
    Part of the Furniture 10,000 Posts I've been Money Tipped! Name Dropper
    edited 27 February 2021 at 4:08PM
    Payday loans are no longer common in the format they were originally marketed in.
    Most of the companies that are still trading altered their business model, and re-branded them to "short term loans" so now you borrow the money over a minimum of 3 months, and the maximum period can be variable depending on the company and the amount borrowed.

    The idea that you could repay your loan on the next payday was flawed from the start, if you didn`t have the funds this payday, then once the loan was repaid next payday, you would be short of funds again, and so on and so on, and that is how many people got trapped in a spiral of ever increasing debt, they were just a really bad idea for the debtor, but a superb cash cow for the lender.

    Of course there were reputable lenders, but also many sharks swam in the same pond, the whole thing eventually came to a head and the FCA stepped in and changed the rules.

    You should only apply for one of these loans if you have no other choice, its not a good life choice to be dependant on such loans, and there is still a stigma from the more mainstream banks if in the future they see a short term lender on your credit file, I would exhaust all other options before resorting to this kind of borrowing.
    I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter
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