How do I Repay my Bad Credit Loan?

There are often those that are confused by how they should repay their bad credit loan. It is wise to have a good understanding of how it works and then you can thinking about how you will ensure that you can manage to repay it.

How do Bad Credit Loans Work?

There are different types of bad credit loans and they repayments will vary depending on the type of loan that you have. The main type that most people have heard of is the payday loan. This is a very short term loan which will last for days or weeks and will need to be repaid in full on your next payday. An instalment loan is similar but you will repay over a series of months. There are also guarantor loans where you will make monthly payments. It is wise to make sure that before you take out your loan, that you are very clear on how much you need to repay and how often. This will allow you to be able to prepare carefully to make sure that you will be able to repay it.

Ideas on Repaying

Knowing what you have to repay and when is a great start. You will then be able to check your bank details to make sure that you are able to repay it. It is a good idea to check out how much money you receive each month and then you will be able to take out the things that you have to pay for and calculate whether you have enough money left to be able to afford to repay the loan and pay for everything else that you need to buy. If you have a gap, where you will not have enough money then there are some things that you can do to get the money that you will need, if you decide that you still want to go ahead with the loan.

  • You could work more hours in your job so that you get paid extra.
  • You could take on a second job and use that money to repay it.
  • You could take on some temp work or freelance work so that you are able to get some more money.
  • You could sell some things that you own and do not need to raise some money.
  • You could see whether you will be able to reduce the amount of money that you are spending on essentials by buying cheaper things.

It is really important to think through these ideas and any others that you have so that you will be able to be confident that they will work. You may have ideas of your own as well but whether you do or not, it is really important to make sure that you think them through carefully. It is not good having a few ideas, you need to work through them in your head to see whether they really will work and therefore that you will be able to do them and get the money that you need. It can be worth having a few extra ideas that you know that you will be able to use as well, just in case some of them do not come off as you had planned or if you get an unexpected expense that you need to pay for.

It might seem like a lot of effort but you do not want to be in the position where you cannot repay your loan as you will face extra charges which no one wants to pay. You may also struggle if you cannot pay for your essentials once the loan is paid as it could mean that you will have to go without food or consider taking out another loan. So, make sure that you do your research well first.

Will a no Credit Check Loan be Cheap Enough?

There are lots of different types of loans which we can use in different circumstances. It is wise to make sure that we are very careful to pick the one that will suit us the best. The cost is a very important part of this as we will want to make sure that we are getting good value for money from the loan and also that we will be able to afford it. It is therefore a good idea to check this out.

What is the Total Loan Cost?

The first thing to check out is the total cost of the loan. This will be influenced by a selection of factors such as the interest rate, any fees they charge and how long you have the loan for. It is very important to not just compare the interest rate as this is only one part of the way that you should calculate how much it costs. The interest rate might look lower if you compare it but if there are fees with the lender that has the lower rate bit not with one with a higher rate, it will be hard to know who will actually be cheaper. With a no credit check loan you will often only borrow the money for a small amount of time and therefore the difference in interest rate may not be as significant as a fee, it all depends on how much they are. To find out the total cost you might be able to use the calculator on the lenders website. Often, they will have one where you will be able to enter the details of how much you want to borrow and how long for and that will enable you to be able to get a proper figure and know exactly how much the loan will cost you.

At this stage it can also be a good idea to think about how much the lender charges if you miss a repayment. Obviously, you want to try as hard as you can to make the repayment on time and in full, but there is always a chance that might not happen. It is therefore good just to see how much that might cost and you will be able to then compare that as well as it could vary between the different lenders.

Can I Afford the Repayments?

It can be well worth finding out about the repayments as well. Often with a no credit check loan, there will be just the one repayment and this will be taken from you on the day that you are paid. It is important to make sure that you can make this repayment as otherwise you will be charged extra money and this will not be much fun. Therefore, it is a good idea to make sure that you are able to pay it before you take on the loan. The first stage is to find out how much it will be and then you will be able to work out if you can afford that. If you have found out the total cost and you do have only one repayment then the figure will be the same. You will need to then take a look at your bank statements to find out whether you will have enough money from your salary to cover it. Even if you do, then you need to check the other things that are going out of your account so that can be sure that you will still have enough money to pay for what you need. It is also a good idea to check that you will then have enough money to keep you going for the rest of the month. If you have any concerns that you will struggle then it is wise to not take out the loan.

Will a Short Term Loan be too Expensive?

There are lots of questions that you should be asking yourself when you are considering a loan and cost could be one of the main one. It is important to think about value for money really, rather than just cost though. You need to consider what you want form the loan and find the one that matches this for the best price. However, you will still need to be aware of the cost in order to make this assessment. It is a good idea to methodically work out whether it is too expensive for you as part of this process.

How Much is it?

The first thing to do is to work out the cost of the loan. This might seem obvious initially, but may not be as easy as you think. It can be tempting just to look at the interest rate and assume that the loan with the lowest rate will be the one that is cheapest for you to use. However, this will not be the case necessarily. Interest rates can be rather complicated. This is because the interest rate can be set up in different ways and how much interest you actually pay is determined by how long you have the loan as well as the rate. The reinterest rate might be the APR which is the annual percentage rate, however, it might be the AER which is the rate which allows for any fixed costs as well. There might be administration fees which have to be taken into account as well as other costs and so you may end up paying more than just the interest. It is therefore very wise to fid out exactly how much it will cost in monetary terms. You may be able to find this out using a calculator on the lenders website but it could be easier to just ask the lender to work it out for you.

What are the Repayment Expectations?

As well as thinking about the cost of the loan, you need to also consider whether you can afford the repayments. This is really important and with a short term loan it can also be more tricky. This is because you will find that the you will often need to repay the whole amount that you owe, both what you borrow and the interest and fees. You need to check this and find out how much you will be expected to pay and when and then you need to give it some thought.

Can I Afford Those?

It is really important to make sure that you will be able to afford the repayments. You might think that you will be able to as you will be repaying on the day that you get paid. However, you must not ignore the fact that you will also have other things to pay for as well. It is likely that you will have bills and things like that to pay that you will need to find the money for. You will also have things to pay for through the month such as food as well. Therefore, you will need to make sure that you add up everything that you will need to pay for and make sure that you will be able to afford them based on your income. If you cannot, then it might be possible to cut down on some things to get some extra money. Cutting back on luxuries is worth it but also seeing if you can pay less for the essentials that you are buying now can also be worthwhile and fairly easy to look into.

Should I Repay my Payday Loan Early?

We will often hear advice that we should repay loans early. There are advantages to doing this but it is also worth some thought because it may not always be the very best decision. So, it is a good idea to think about the pros and cons before you decide whether to do this or not.

 Advantages of Repaying Early

  • the biggest advantage of repaying early is that you will be able to pay less interest. A payday loan has interest charged each day that you have the loan outstanding and that means that if you repay it early, you will be able to save money. The earlier you repay it, the more money that you will save. Even if you only repay some of the money that you owe, you will be able to save money and so this will enable you to have a cheaper loan.
  • Some people do not like being in debt and so repaying it will mean that they will no longer need to worry about this. They will be able to relax knowing that the debt has gone and they are free of it.
  • If you can repay before you have to, then this could help you manage better in the month ahead. Payday loans are normally repaid on your pay day and that means it could make it hard for you to manage the rest of your bills that you will have to pay for after you get your salary. Often, we will set up direct debits and standing orders to be paid once we get paid so that we have the money available. If we have paid our payday loan off at that time, then we will not have to use some of our salary in order to pay it and will therefore have more money available for the other things that we will need to buy.

Disadvantages of Repaying Early

  • If we repay early it means that we will not have that money available to buy other things. Therefore, if we find that we then need to pay for something else, perhaps that we had forgotten about or to replace something that suddenly breaks there will not be the money available for it. This can be difficult and it means that we may end up having to get out another loan to pay for it if we cannot wait to buy it.
  • Some lenders will have a charge for those that want to repay early. It is something that is often done with mortgages and maybe some other loans so you need to check whether this will happen with the loan that you are repaying early. Ask the lender and they will be able to tell you if this is the case. Even if there is a fee, it could be worth paying if you save more interest than the cost of the fee. It could be good to ask them how much you will pay in total in each circumstance and then you will be able to easily see which will be the cheapest.

You can see that it is not really a straightforward decision. It is normally better to repay early because of the money that you save but you do need to be careful and consider the consequences of repaying early and whether you think that it will be worth it for you. Consider you own personal circumstances and this will help you to make sure that you are making the right decision as to whether it is better for you personally to repay it early.

Is it Worth Learning About Payday Loans?

You may have heard of payday loans and wonder whether it is worth bothering to learn more about them. They are pretty new which means that there will be a lot of people that have not heard of them and will therefore be looking for some help to know what they are all about. Even if you feel that it is not important because you are unlikely to use one it is still a good idea. These are the reasons why.

  • To Make an Informed Choice
    If you want to borrow money at any stage you will need to choose a loan. There are lots of different loans to choose from and it can sometimes be difficult to know which is the best for you to use. It is really important to pick the right one as well because it will mean that you will then get the best value for money. You need to think about what you are looking for in a loan and then you will be able to match that up t the best lender. Think about how much you need to borrow, what you can afford to repay and when, how much you are prepared to pay and any features of a lender that are important to you. Then you will be able to look at the different loan types and think about which is the most likely to suit you. If you do not know all about the different loans and what they are like or how they can help you, then you will not be able to access whether it will be the right sort of loan for you.
Young couple reviewing invoices and doing family business plan. Concept of money and economic problem for man and woman living together
  • In Case of Emergency
    If you need money in an emergency then a payday loan without a credit check could be the solution for you. These loans can be arranged very quickly which means that you will have the money for what you need as soon as possible. Some of the lenders will be able to get you money within a few hours of you applying and some will be available on weekends or evenings so that you will be able to get money outside of normal banking hours. This means that if you do need money quickly and you have no access to savings, overdrafts or credit cards, then they could be very useful to you.
  • So you do not get Trapped
    If you do not know much about a loan and take one out anyway then you can feel trapped by it. You might feel that you wish you had chosen a different type because it is not really doing what you expected. If you know what to expect then you will not get trapped because you will know how the loan works and what to expect from it. Therefore, even if you feel that you will not need a loan in the near future, it is wise to find out about the different types of loans and how they work as well as who they are for. Then you will be able to avoid feeling like you have taken out a loan without really knowing what you have let yourself in for. It is easy to think that this will not happen because you will look into it when you need to borrow, but often we do not have the time or the right mind set for doing it then. If we need money quickly we will often worry about what to do and that panic will stop us being able to think clearly and methodically and we will end up making rushed and poor decisions.