CCJ’s demonstrate a mishandling of one’s finance’s previously – leading to a black-mark against your name
Every year, thousands of people in the UK get into serious difficulties with debt, and one of the most serious problems a person can face with debt is the county court judgement. Getting a loan when you have county court judgements, or CCJ’s, on your record is impossible when dealing with a bank or other large financial institution.
A county court judgement means that the borrower has had a default with a previous lender, this could be any credit agreement that was not honoured with a lender leading to them attempting to reclaim the debt through a judgement. A CCJ. will last on your credit file for 6-years after the judgement, and this will be seen by any lenders performing a basic credit check. Bad credit such as CCJs can determine whether you will be accepted for bank loans, a credit card, sometimes a bank account or mortgage, and will ultimately put the credit available to you on hold for 6 years.
This is why many in this situation will turn to a payday loan as they have little or no chance getting a loan through other avenues. Granted some lenders will not approve these customers, however others claim that they will only look at a borrowers present/most recent finances to gauge suitability for loan approval.
The decision to be made, by future lenders, is distinguishing those that have been mis-sold credit they could not afford – leading to this situation, and those that simply cannot manage their finances
In order to take out a loan when you have a county court judgement against you, you will need to look into non-traditional credit lenders. Some companies dedicate themselves to finding loans for people with seriously bad credit, and the lenders that they are associated with often charge very high rates for their services.
An ordinary bank loan, for example, may cost you 17% APR, while those with a CCJ against their name will struggle to find a major high street lender offering a comparable loan charging anything less than 50% APR. This means that a loan of £3,000 can quickly become one of £4,500, and that’s if you can find a lender offering the service.
Payday loans are simply another form of credit, where they differ however is that they are small amounts, the benefit of this is that borrowers only need to commit to one repayment. Also this is one area where lenders do approve those with previous defaults. Of course you will have to show that your finances are capable of repayment, but if this is deemed affordable for the borrower, than they have every chance of being approved.
You can take out a short-term loan today, and then pay it back within a month, leaving you without a large debt dragging you down into the mire. Payday loans are a great solution for people with bad credit, as those often refused elsewhere find that they will be offered a small loan. Lenders of crisis loans are only interested in whether you can pay the loan in the here and now, rather than your past history. This is ideal when you know that you have a very bad credit rating, and can’t get a standard loan from any of the traditional banks.
Perfect for small amounts
Getting small sums of money quickly is not always easy to do. Banks are more happy to offer large loans, often much more than you need, rather than say a few hundred pounds. The interest rates for these loans are also large, and may be more than you can afford. You may also find that you get turned down for a sizeable loan if it is not properly secured. As an alternative, you could try to extend your overdraft, but again this is not always possible, and you could find yourself struggling to raise a couple of hundred pounds. Payday lenders appreciate the absurdity of struggling to get these funds together, and can offer you an alternative to traditional loans.
Many people don’t think about taking out a non-traditional loan when they are desperate for money, but these can really be life-savers.
Non-traditional financial institutions have learned to be more flexible with their lending, meaning that borrowers can take advantage of some great deals. Using the loans like these can help you through the bad times, and it is no real surprise that thousands of people in the UK are now using payday advance loans as an extra source of ready money.
With these loans for your less than stellar credit score the delays in arranging your loan that occur in banks. Simply apply today, and you could have money in your pocket by the following morning, or even sooner. All you need are a regular source of income and a valid British passport.
Do large lenders like Wonga offer payday loans for those with CCJ’s?
In a word no, there are so many payday lenders in the current market, that it can sometimes seem difficult to tell them apart. Wonga have been busily promoting themselves on TV and through the Internet, making them one of the first companies that comes to mind when people are considering taking out a short term loan. These ads are eye-catching and serve to tell the viewer that they can get payday loans from Wonga, but they don’t really give away much information, and they are clearly not an unbiased review of Wonga’s offerings. Rather than jump right in to a loan with this company, it makes sense to read a few reviews and learn the real facts behind Wonga’s promises.
Wonga established themselves as a payday loans company in 2001, and have quickly become one of the most prominent short-term loan companies around. Their business model is based upon offering a speedy approval service, and can offer some customers a 15 minute waiting time between the application being sent and the approval being granted. Wonga have a number of criteria which their clients must fulfil, typically that customers must be over 18, with a full-time job and holding a current British passport. Unlike some other lenders in the UK, they will perform a credit check/background check on the applicant. This is done either through your vehicle registration number or social security number.
Pros and Cons of Using Wonga
There are a number of reasons why you might consider taking a loan from Wonga. Firstly, they are an established lender, which means that you have more security than with a lender who has only just started. Secondly, they offer a completely online service, meaning that you get the form filled online, through their secure site, and you then are granted the loan, again through the internet. This can be a big advantage, since you won’t have lenders ringing your home, but it can also seem very cold and impersonal. Wonga are also keen to provide the best service possible, so they allow you to choose exactly how much you want, moving slowly up in £10, so you need only take out as much as you like. They will also allow you to choose when you pay it back, up to 30 days after the loan.
This does not mean that there are not disadvantages. Wonga typically charge £5.50 for arranging the loan, and will only allow you to borrow for one month. This is less than some payday loans companies, who are willing to extend the loan for 60 days.