GAC Finance
We blog about personal finance with a focus on loans and lending.

How to Guarantee You Can Repay Bad Credit Loans

If we take out a loan then it is a really good idea to be well prepared for repaying it. There are a series of steps that you can work through to ensure that you are well prepared. It is easier to explain using an example such as bad credit loans, but it will work for any type of loan.

  • Know how much you are repaying – to start with you need to find out exactly how much you will be repaying. This is not always easy to work out if you have to calculate interest and maybe fees that are incorporated into the repayment. Therefore, it can be wise to just ask the lender. Ask them for an exact figure and that should help. Do note though if the interest is variable. Tis will be unlikely to be the case with a bad credit loan, as they are usually fixed interest. However, if it a variable rate, then the interest part of the repayment may change. Although this could mean it will go down, it is much more likely to mean that it will go up and that will mean that you could end paying a bit more than you have calculated.
  • Know when repayment is due – it is just as important to know when the repayment is due. With a bad credit loan such as those offered at Omacl, it is very likely that the lender will ask for you to repay on the next day you get paid. This means that you should be aware of that date as you will need to provide them with it. However, it can be a good idea to make sure that you keep that date in your memory so that you are prepared for paying it. They will normally set up a direct debit so that you will not have to remember to make the payment, but it is important that you make sure that there will be enough money in the account when you need it.
  • Check accounts – so check your current account to look at your finances. Look at how much money you expect to get in on the day that you are paid. Then look at what will be going out on that day too, think about whether that will still leave enough money to repay the bad credit loan. Also think about all of the other things that you will need to pay for in the month and check whether you will have enough money to cover the cost of those as well.
  • Earn more – it can be a good idea to do what you can to earn more money as well. This will help you to make sure that you have enough money available to cover the cost of the loan and everything else that you need to buy. This might seem really difficult but there are many things that you can try. If you are currently working then think about whether there is a chance you can get a pay rise or work extra hours to earn more there. Consider also taking on an additional job to get even more money. Also look for other opportunities to earn such as temp work, freelancing, online work and things like this. There are lots of opportunities around if you search online.
  • Spend less – this might be easier for some people and harder for others. Try to reduce what you are spending in two ways. You can start by comparing prices on everything you buy and make sure that you are not paying too much money for what you buy. You might also benefit from cutting down on what you buy. You will still need to pay for essentials but it could be possible for you to cut down your spending on non-essentials and luxury items.
Loans of this nature offer flexible repayment terms.

This might seem like a lot of stages but if you work through each one then you will be guaranteed to be able to repay your loan. Most stages are pretty simple and just take a bit of organisation. It can be a good idea to concentrate the hardest on making sure you will have enough money to cover the loan. If you do not then you will need to work on earning more and spending less so that you can. It will mean that you will have to work at this bit pretty hard in a small space of time as the loan is likely to need to be repaid within a few weeks. However, it is possible to do these things that quickly, you will just need to make sure that you start working on it right away and do not get tempted to procrastinate. The sooner you get going; the easier the whole repayment process will be for you.

Will No Credit Check Payday Loans Suit My Needs?

There are lots of loans available and when we are looking for money it is important to make sure that we choose a loan that will suit our needs really closely. This means that we need to be aware of how the loans work and then we will be able to match up the main features of the loans with our requirements. With a no credit check payday loan it could be the case that there are a lot of people that do not know how they work or what they are so they might ignore them when they are looking at loans. Or they may just feel that they are not for them. It is a good idea to make sure that you properly understand how they work and then you will be able to decide whether they will be the right loans for you.

How do they work?

These loans are different to many other loans in a few fundamental ways. It is good to know what these differences are and then you will know whether they will work for you.

Firstly, the loans are available to borrowers with a poor credit record. Most lenders will do a credit check and they will want to make sure that the borrower will be able to repay the loan. They will only trust those people that have shown the ability to repay loans in the past, or who make regular payments or who have a regular and high income. This means that there are quite a few people that are unable to get these loans. With a no credit check payday loan they will not worry about your credit record and therefore there will be no need to worry about being turned down because of this.

The payday loans also last for a short amount of time. This means that they will be paid off really quickly, which is a big advantage for anyone that does not like being in debt or does not want to be in debt for long. The loans are repaid on the day that you get paid so you should have plenty of money available to pay it with.

Loans of this nature are excellent for people with a low credit score.

Payday loans can be arranged very quickly. Some lenders are able to get you the money that you need within two hours of you applying. The time they take will vary between lenders so it can be wise to check and make sure that you are applying to a lender which is fast if you need the money really quickly. It is also wise to make sure that you completely the application correctly and send any other forms to them as quickly as possible so that you do not slow down the process yourself.

Payday loans are for between £100 and £1,000. Often loans will be for higher amounts of money than this. It can be really nice to only borrow a small amount. If you are forced to borrow more than you need, it will end up being a bigger burden and taking longer to repay. This means that this sort of loan will be smaller and will not feel so burdensome.

Will they suit me?

Whether the loan suits you will depend on your borrowing needs. Our needs will be different each time we want to borrow money. This is because we will be borrowing for different reasons and our personal finances will be different too. This means that it is a good idea to not decide whether they are right for you completely, but think about whether they will suit you at a specific moment in time. You may be at a stage where they are not the best loan, but in the future they might be. So only discount them this time but remember them for the future.

This might seem like a lot of effort, to find out about all sorts of different loans, but it is worth it. It is a good idea to think about what you might need in the future. If you suddenly need money, then you could be in a panic and just settle for the first loan that comes along. This could mean that you will be taking on a loan that is more expensive than it needs to be, more difficult to repay or from an unsuitable lender. By understanding a bit more about the different loans and how they work, you will be able to make a better decision. It will enable to still make a quick decision without having to worry about doing lots of research, which you may not have the time to do. It means that when you do need money you will easily be able to decide which loan type will be the best and then you will be able to compare the different lenders so that you can then pick the one that will offer you the best value for money.

Are Short Term Loans Better than Long Term Loans?

There are lots of different types of loans and if you are looking for one it can be really helpful to understand the differences between them. You may also have heard that one type of loan is better than another and that might be something that you want to use when you are judging which one is the best. It is good idea to know more about them so you can decide for yourself.

Main Features of Short-term Loans

Short-term loans have several different features that are quite different to long term loans. Their main features include the fact that they do not last long; hence the name. You would normally need to repay them within a few months at the longest and possibly even with a few weeks or days. They are mainly designed to give you some money to tie you over until you next get paid. This means that you will be required to repay them on the day you get paid or perhaps across your next couple of pay days.

These loans also do not require you to have a good credit record. It means that anyone who struggles to get a loan from a traditional lender due to their credit record not being that good, will find that they can have a loan like this.
Short-term loans tend to lend small amounts of money. This can be just up to £1,000. This can be helpful if you do not want to get into debt for too much money.

Lastly, they can be very quick to arrange. You might be able to get the money that you need within a few hours of applying. This will depend on the lender but it is very useful to know that you will be able to get the money quickly if you need it.
Main features of long-term loans

A long term loan is usually issued by a popular high street lender or building society. It tends to be for a reasonably large amount of money and some loans will have a specific purpose such as a mortgage.

The lenders will do a credit check which means that they will only lend money to those that they feel are capable of repaying the loan. They will look at potential borrower’s credit history to find out whether they feel that they are safe to lend to and will not take on big risks.

There are different types of loans, some will require monthly repayments over a fixed time. Others might have less of a restrictive repayment scheme where you can opt to just repay a minimum amount. The loans tend to last for some time, which could take years or even decades to repay, although there are some that will take less.

Which Is Better?

Deciding which is better will not be as easy as it seems. This is because you can only decide this when you know what situation you are in when you want to borrow. It will depend on how much money you need to borrow, how long you want to borrow it for and what you can afford to repay.

You will therefore need to make this assessment when you know what your precise needs are. It is not always that simple either.

If you have a poor credit score, then it might be that a short-term loan will be your only option. If you need money quickly, then again, you might find that the short-term loan will get it to you faster. You will also need to think about how much money you need and which type of loan will be able to provide you with that.

A really important thing to consider is repaying the loan. If you are loan with a repayment, which ever type of loan you pick, you will be charged some fees. This means that you need to make sure that you are confident that you will be able to repay it. You want to make sure that you have enough money to cover that repayment and that you will also have to cover anything else that you also need to repay. The way repayments work will differ between different loans and so it is important to get an understanding of this, so that you can make the right decision for you.

The cost of the loan is also a big factor. It is good to find out how much the loan will cost you and then think about whether you think that is good value for money. Compare to other loans and lenders and you will be able to decide which is the best. It is a good idea to make sure that you do not just concentrate on cost as it could be that you will be better to pay a little more but get a loan that is easier to repay.

It can actually be quite complex to work all of this out. However, it is well worth thinking about all the factors of the loan and what will suit you the best. This will not only mean that you will avoid paying out more than necessary, but you should find that you will have a much better borrowing experience and will find the loan easier to repay and the lender better to deal with as a result.

Are Instalment Loans Much Easier to Repay than Payday Loans?

There are so many different types of loans and they differ in lots of ways, so it is tricky to say whether one type might be better than another without making all sorts of comparisons. There are certain things that you will find are more important though, when you are comparing loans and these are very often to do with the cost and interest rate. However, one thing that is equally important and can often be overlooked is the repayment.

Repaying the loan is really important because if you miss the repayment you will end up having to pay an extra charge or fee as well as having to pay the interest for longer. This means that the loan will be more expensive than you anticipated and it will also last longer. This could be stressful for you and this will not be nice. However, it can be avoided as you can make repayments easier.

Choose the Cheapest Lender

It is a good idea to start by comparing the different lenders to see how the price of them varies. You will find that there can be quite a difference, but you do need to be careful how you are comparing them. You need to make sure that you are comparing them like for like. For example, it can be tempting to just compare the interest rates and pick the lender with the lowest one. However, some lenders will also have fees and you need to allow for those as well when you are calculating the costs. Therefore, make sure that you know exactly how much you will need to repay in monetary terms and then you will be able to properly compare them.

Borrow a Sensible Amount of Money

If you borrow too much money, then it will be difficult to repay it. This is because you will be repaying for longer and repaying larger amounts of money. Therefore, make sure that you are borrowing a reasonable amount. Also think about what you need the money for and make sure you are only borrowing what you need. If you have some savings or other spare money use some of that towards it and then you will not have to borrow so much. It is often tempting to borrow a bit extra so that you have some spare money to treat yourself to some fun things. However nice this seems, you need to think about the fact that you need to repay it and pay for the loan so it is best to avoid doing this if you can.

Choose a Manageable Repayment Amount/Term

You should give some thought to the repayment amount and term. Look at the loan conditions and should tell you how much you will need to repay and how often. You need to make sure that you pick something that you will be able to manage. For example, if you have to repay for six months, that will mean that each payment will be less and therefore easier to manage. However, if you have an expensive car service due in four months time, you may want the loan to be repaid by then so that you do not have to worry about the cost of it.

Ensure You Can Afford Repayments

It is good to look at how much you will be expected to repay each month and make sure that you will be able to afford it. You will need to be sure that you will have enough money to cover that repayment as well as to pay for the other things that you need to pay for as well. This will include things like other loan repayments, rent, insurance, utilities and food.

Generate More Money

If you feel that you will not be able to afford the repayments or that you will struggle, then it is wise to have some plans as to how you can generate more money. You can do this by selling things you own and no longer need, working more hours, doing some online work, buying less things or paying less for what you do buy. A combination of these things can really help.
As you can see, it can be useful to have a loan that you repay in instalments as it can make it easier to manage all of the repayments. This could mean that it will be better to use an instalment loan compared with a payday loan which has to be repaid in a lump sum. However, you need to think about your own personal circumstances and think about whether that will suit you the best. Consider your personal financial situation, what you can afford and what you can afford to repay and for how long and this should help you to make the right decision for you.

Are Payday Loans Easy to Repay?

There are many things that you should be thinking about when you are choosing between different payday loans. It is an important decision and you need to make sure that it is the right one. You will find that there are consequences when you take out a loan, both good and bad and you will need to carefully weigh up your decision. It is therefore important to make sure that you are thinking about all of the important factors before you make a decision about which loan to take out.

Repayment

Repaying a loan is one of the most important things that you should think about. It is easy to focus on the advantages of getting the money that you need and ignore the fact that you will need to repay the loan and therefore you need to really think about this. This is because if you do not repay it when required you will have to pay extra charges. Not only is this annoying, it will make the loan more expensive and worse value for money and could be stressful for you as well. Therefore, you need to think about this first.

Start by finding out exactly how much you will need to repay and when. Loans will differ a lot in this. Some will have regular monthly instalments that will always be the same. Some will have variable monthly instalments depending on the interest rate. Some will need to be repaid in a lump sum. Some will have no formal repayment requirements at all. This is why it is so important to find out what the requirements are. You should find that it will say on the lender’s website as to how the loan should be repaid. If it is not clear though, make sure that you contact the lender so that you are completely sure.

Once you have this information, you will be able to work out whether you will be able to afford the repayments. To start with you should look at your household finances and work out whether you will have enough money to cover it. You may not keep household accounts and if you do not. Then you will have to look at past bank statements to work this out. Look at what money you tend to have coming in each month and how much you pay out. Then you will be able to see whether there is enough left to repay the loan. If there is not, then you will be able to work out if you can still manage. It might be that you will be able to cut back spending in areas which are not necessary. Or that you can compare prices and buy cheaper things so you are spending les son the items you do buy. You might be able to sell some things to raise some money or do some extra work. Whatever you decide, you need to be completely confident that you will stick to it and do it and that it will work and get you the money that you need.

Payday Loans Repayment

With a payday loan, you repay the money in a lump sum. This means that you only have one repayment and therefore just have to plan for that. It is important to find out how much you will repay. It can be a bit confusing and you may just think you will be repaying what you borrow, but you will also have to pay interest and fees on top, so make sure that you know what those are as well.

As the payment comes out on your pay day, you can easily be tempted to assume that there will be enough money to pay it and so it will be easy and you need not worry about it. However, you need to remember that you will have other things to pay for as well. You will have all of your normal bills to pay and once that loan repayment comes out, you will need to be sure that it will leave you enough money to cover this. Make sure that you calculate whether you will have enough and if not, how you will raise that extra money. Using ideas mentioned earlier, it is very likely that you will be able to find ways to cope, but you need to be completely sure and make sure that you are confident before you take out the loan.

So, it can be easy to repay a payday loan but you need to be well prepared for it beforehand. You need to make sure that you will be able to manage the repayment and make sure that you find out how much you will need to repay and calculate how you will be able to afford it so that you can be confident before taking on the loan, that it will be a good idea that will work out well for you.