If you have a poor credit record then you may find that you will have less borrowing options. You may feel that payday loans will be your only answer. However, you may find that you do have alternatives and it is a good idea to think about all of your options so that you can make sure that you take the action that is best for you.

Payday Loans

A payday loan will usually be available to everyone which means that even if you have a poor credit record you should be able to use one. You will be able to borrow up to £1,000 although the amount will vary depending on the lender. You will find that you will normally be able to get the money quickly as the lenders tend to assume that borrowers need the money for emergencies and therefore will get the money to them quickly. It could even be available within a few hours. It will need to be repaid quickly though – normally in a lump sum on the next day that the person is paid.

Other Poor Credit Loans

There are some other loans that are specifically designed for people with a poor credit record. It is a good idea to consider these as well as they may be more beneficial. For example, you can get instalment loans, which are similar to payday loans but repaid over a series of months to make the repayments more manageable. There are also guarantor loans which allow you to borrow larger sums of money but you will need to nominate a person as a guarantor who will cover the repayments if you cannot afford them. Check these out in case they suit you better than a payday loan. They may be more expensive though so make sure that you carefully compare the prices too.

Regular Loans

You may find that you will still be able to borrow form regular lenders. This will depend on how bad your credit score really is. It can be a good idea to contact lenders and to ask them whether they might consider lending to you. Explain your position and find out before a credit check is done. It is wise to do this because if a lender does do a credit check then this will show up on your credit record. If you are turned down it will put off other potential lenders and if you keep applying to lots of lenders this will also look bad. If you have a good idea of whether you might be accepted or turned down before you apply, then this will be really beneficial for you. You may find though, that if you do get accepted for a loan, you will be charged more than the advertised rate. It is worth bearing this in mind and comparing rates so you do not end up paying more than necessary.

Not Borrowing at all

It is always worth making sure that you really do need to borrow money. There are very few free borrowing opportunities and this means that you will always have costs to pay. You need to work out whether it is really worth paying those costs. Think about what you are borrowing the money for and whether it is worth the cost that you are paying for it. Consider whether you will be able to wait and save up rather than borrowing. Consider whether you have any savings you could use. Even think about whether you need the item at all and whether you might just be better off not buying it at all.