The short term high-cost credit industry used to be more commonly known as Payday Loans.
This means the risk is higher so in turn, the loan company may increase their interest charges to mitigate against this.
Due to the high cost involved to the customer a payday loan is designed to help meet unexpected costs over a short period of time and is unsustainable for long-term financial issues.
Do QuidMarket offer payday loans?
No – QuidMarket offer short-term loans, meaning you can borrow from £300 – £600 for between 3 and 6 months.
Repeat customers can borrow from £300 – £1,500 from between 3 – 6 months.
This means that instead of repaying the entire loan amount on your next payday you can pay in instalments each month making it more affordable for you.
Use the sliders on the homepage to see how the amount borrowed and for how long can affect your repayments.
The total amount repayable on your Short Term Credit is clearly displayed before you sign your agreement meaning you know exactly where you stand and there are no hidden charges.
QuidMarket does not use a broker to provide you with the Short Term Credit as we are the Direct Lender.
What is Bad Credit?
Every person’s credit history is stored and logged with Credit Reference Agencies (CRA) – Credit Providers use CRAs to help them make a lending decision.
A low credit score means the individual is considered to have a bad credit rating.
This score is based on a number of factors including the repayment history (on time, amount of payment etc) the amount borrowed and the amount owed.
A person who does not make timely payments or who have defaulted on previous loans may be considered to have Bad Credit.
Having Bad Credit may affect a customer’s ability to obtain credit from established lending sources or from being accepted for a mortgage or other secured loans.
Advantages of a payday loan
Sometimes, when you need to borrow a smaller amount of money for a short period of time a payday loan is ideal.
The application is done online at your convenience you can have the funds transferred directly into your bank account.
How affordable is a payday loan?
If a PayDay loan is underwritten correctly, it should be just as affordable as any other credit option.
Each Pay Day Loan should either be “funded” or “declined” based on a number of industry / regulatory guidelines alongside each company’s own in-house policies.
The main thing about a Pay Day Loan is that it undergoes an “affordability” assessment meaning it does not look at the total amount of credit, but rather the individual repayments compared to the customers’ incomings.
So, after breaking the PayDay loan down into the individual repayments, this is then compared to the customer’s income and expenditure and deemed affordable or not accordingly.
How can I check my credit score for free?
There are a number of ways of checking your Credit Score for free. There are a number of companies offering this service, including (but not limited to);
QuidMarket is not affiliated or promoted to any of these companies / Credit reference agencies.
Here is a guide to obtaining your Credit Report and what information is held on there;
Will my application for a bad credit loan affect my credit score?
As payday loans are based on affordability rather than creditworthiness, your credit score should not have too much of an effect on the decision.
However, each loan provider will have their own set of policies and guidelines – each application is judged on its own merit and criteria so until the application is made it is impossible to say definitively what effect a Bad Credit Score will have on the application.
Should I use a broker for a bad credit loan?
Usually, a broker acts as a “middleman” matching potential customers to Credit providers.
This, in turn, can mean the broker will have their own charges for providing this service which is then passed onto the customer – the effect of this can mean a higher cost form of Credit.
The decision is down to you, the customer, but there are the above factors to consider.
QuidMarket is a direct lender and so there are no broker fees/charges helping us keep the costs down to you, the customer.
QuidMarket is fully registered and certified by the Financial Conduct Authority (FCA).
Please check out our reviews to find out why we were given a 5 Star Rating at Trustpilot.