3 Secrets of Bad Credit Personal Loans

Did you know that the representative APR of a loan means that only 51% of successful applicants will be given that stated interest rate?

This is one of the lesser know secrets of some of the new financial options which have recently hit the market.

To make sure that you do not get caught out by the small print, we have compiled a list of 3 additional secrets of borrowing to make sure that you do not make a bad situation worse.

No.1 – Representative APR

Finance is jam-packed full of confusing terms and acronyms, and we would put the term ‘Representative APR’ right at the top of the list.

Many people nowadays are resigned to the fact that only the most expensive options are widely available. This can lead to a very common mistake relating to modern day advertising.

As we stated at the top of the article, where a loan uses the term ‘representative APR’, what they are actually saying is that only 51% of successful applicants will be given the stated interest rate.

Martin Lewis of MoneySavingExpert.com provides a great example.

“If a loan is described being available at 49.9% representative APR, then 51% of people accepted will get 49.9% APR, but 49% will get a different rate (very likely to be higher).”

Martin Lewis
Money Saving Expert

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Please Note – It is therefore absolutely essential that you understand that just because you see a particular interest rate quoted, does not mean that you will be eligible for the rate.

For more information on representative APRs, please take a moment to check the following Wikipedia guide – https://en.wikipedia.org/wiki/Representative_APR

pay day loan could be for life pictureNo. 2 – Payday Borrowing Options can Cost More in a Single Month than Credit Cards do in a Year!

The majority of people believe that payday lenders charge interest on the balance that has been borrowed. However this is not always the case.

Many payday lenders typically choose to charge a fee instead of an interest rate.

For example, if you borrowed £100 for a month, a standard fee for this would be approximately £30, resulting in the full payment equalling £130.

When you compare this figure to a standard credit card charging 19% APR, assuming that you did not miss any repayments, you would only be charged £20 on a £100 balance for a whole year!!

No. 3 – Being a ‘Good’ Borrower can Actually be a ‘Bad’ Thing!

We all know that failing to make repayments on time can lead to trouble. Surely though, making sure you repay on time could not possibly lead to further trouble, could it?

Making timely repayments in full can still lead to potential issues. Because your payday lender will know that you are a good customer who repays on time, it will certainly be aware that it has made money from you. This inevitably leads to the next step – if it lends you more money, you are likely to repay again making them even more money!

Borrowing a small amount to see you through to the next payday is one thing. Borrowing significantly more is something else altogether. The larger the amount borrowed, the greater the chance of failure to repay and the greater the costs will be.

To explore payday loans in greater depth, take a moment to click on the following link which will take you to the Citizens Advice Bureau guide to payday loans –

Do you know what your credit file look like?

Personal credit ratings play a pivotal role in finance eligibility. It is therefore always important to keep an eye on your credit rating. Did you know that each credit reference agency could have a slightly different rating for you though?

By clicking on the following link, you can visit Checkmyfile which offers you the opportunity to view your multi-agency credit report which will provide you with all the information that you need.

Check My File
See more than twice the information compared to any other Credit Report in the UK

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Did you know there are affordable options?

It’s important to understand that whilst some current financial options have a higher profile than others, it is some of the ‘lesser lights’ which can prove to be much cheaper.

Clicking on the calculator below will allow you work out just how much you can afford to borrow and then filling in our easy to complete application form will allow you to simultaneously submit your form to a number of the UKs best lenders resulting in a variety of instant ‘no obligation’ offers.

For more information check out our page Loans for Poor Credit.


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Borrowing over your repayments will be approx. per month and in total. For actual figures hit Get My Loan to get a choice of free, no obligation loan offers from the best bad credit loans lenders in the UK.