Bad Credit Payday Advance

Suppose a person has a bad bank credit history.  Will any lender – creditor come to his assistance when the person needs a Payday Advance?  The answer is yes.  There are many financial institutions that accept applications from such individuals. These institutions study the application without a credit check.  Can they afford this approach?  How do they view Bad Credit applications?  

Let’s imagine two people, Abe and Alison.  Let both of them borrow £100 from a lender – creditor that charges £10 per £100.  [Usually financial institutions charge at least £10 to £20 per £100].  Abe has no Bad Credit experience, as reflected in his bank statements and other relevant documents.  Alison couldn’t repay a previous loan and has a Bad Credit history.  

How much will the lender charge them, say, by the ensuing payday?  £110 from Abe and £125 from Alison.  That is, the interest accrued on the amount lent to Abe and Alison would be £10 and £25.   In other words, though both borrowed the same amount, Alison repays a higher amount.

If for any reason, the repayment is not done on the due date, steps are taken to get back the entire advance amount [principal plus interest fee] from the customer.  And next time the borrower approaches the lender, the latter will probably say, “Sorry, no credit from you, hence no credit from us.”  Hence it is always better to keep your credit history clean, as this is the best approach for most economic payday borrowing during an emergency.



