Payday loans – a plan to help repair your credit rating

Lending rates on the high street are the lowest for five years. But, just like the ‘all-seeing-eye’, for those who have poor credit history they are tantalisingly close, but oh so unattainable.

For those who can afford them, but know for a fact that because their credit score is low they’ll be denied, it can be a frustrating situation. One consolidation loan from the bank would solve all your financial problems but instead, you go month to month eking a living, only just keeping your head above water, whilst those who have been more careful or frugal in the past get that loan. It can leave you seething, inside.

A instant cash loan can help, as part of a monetary controlled diet

One route many are taking to improve their credit rating is to take out short term loans that are more poor-credit-rating friendly. In order to successfully achieve this, it does take discipline that perhaps individuals have lacked in the past, but if you can curb your spending for a few short months, the rewards can be many.

The key to a successful high street loan application can be a series of month-on-month short term loans. Yes, you have to acknowledge that there will be a nominal chunk missing from your salary with the interest you have to pay back to the online loan lender, but if you have that flexibility in your budget, and it only needs to be the difference in the interest that you pay back over the amount you lend, you can start to repair your credit rating in no time.

Do not be put off by high cash advance loan interest rates

What puts a lot of borrowers off taking out an instant cash loan is when they see the interest rate, which is typically above 2,000 percent, but can be as high as 4,000 percent in some cases. When they see the high street rate, now hovering around 6%, they shy away.

However, the deciding factor of a instant cash loan is the actual amount you have to pay back. And this is a really good time of the year to do it, with February being such a short month.

At time of writing, 08:02 17/01/2012, a loan of £250 from one lender who uses a slider so your repayment terms are 100% visible, will cost you a mere £23.14 if you pay it back in 7 days – the interest rate being 4214% APR.  Or, if you go for the 14-day repayment term, on the 31st – which is the first payday since Christmas, for many – it will cost you £40.78, the repayment figure in total being £290.78.

If you know that sacrificing that £40.78 is feasible (do not touch the base £250!), then you can make the repayment on the due date and you will have started on the road to credit repair recovery.  Then, rinse and repeat, proving to credit agencies that you are once more creditworthy, thus improving your chances of getting the high-street loan over a longer term, for consolidation of all of your existing debts at one low rate.  Job done!

Obviously, these figures will change from lender to lender and be affected by the base amount you choose to lend. Mine is one example using one of our instant cash loan specialists; why not check out what deals you can get by comparing what you can afford to lend at

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