Payday Loans are so easy to get, a child could do it!  Well, anyone over the age of 18 is permitted to but this is one of the only criteria.  Other criteria will be:

- You must be a UK resident
- You must have a job

Some Payday loan companies may ask that you also have a UK bank account or hold a UK debit card.  The minimum monthly income you are required to have is usually low - around £300.

There will be no credit checks made on you, so if you have a poor credit history, fear not - you will more than likely be accepted for a Payday Loan.  The premise is that you take the loan and pay it back at the next payday - which is usually between 2 weeks to a month.  Loan amounts vary, but are often around £80 - £10,000.  Cash is handed to you very quickly - often transfers are made the same day as your application.

So, they are easy to take out and quick to pay back, so where’s the catch?  The catch is that if you are not ready to pay back fast, you may end up much worse off than you were to begin with.  For example, you take out a payday loan with an APR rate of 1250%, and you don’t pay back quickly….you could end up paying a lot more than you bargained for.

Payday loans will always carry a hefty APR rate, and that is the snag on this kind of loan. Be sure you know what you are getting yourself in for before taking out one of these.  Sure, you will be able to get a good amount of cash quickly, but you may end up having to pay back much more.  And remember: if you are unable to meet repayments, you credit rating will take a further tumble, meaning you’re in an even worse spot than before.

Keeping on the topic of low credit rating and less-than-impressive credit histories - even County Court Judgments - here is the Bad Credit Loan.

What is a Bad Credit Loan?

This loan steps in where you have been refused elsewhere.  You may have felt the loan door slamming in your face thanks to your credit status - a status which sometimes is not your fault (such as a recent graduate) or simply because you are new to the country.You can go to a Bad Credit Loans broker who will search the market on your behalf.

There are always loan lenders available who are prepared to take the risk of a not-so-perfect applicant.  They will consider your case and more than likely accept your application where others have not.

Are there Risks?

Bare in mind that a Bad Credit Loan may carry a much higher APR rate than a regular loan.  Unlike a Payday loan, there are more options with Bad Credit Loans - unsecured and secured types will both be available.

Make sure you remember that if you use your personal property as collateral against a loan, you stand to lose this.  So, if your house is the guarantee and you are unable to cover repayments - you may not have a roof over your head very quickly as your home will be seized.

If you are in credit trouble, it may be worth visiting an independent financial advisor, who can review your personal circumstance and advise you if you are suitable for any type of loan.