Before loan applications became easier and were made available online finding a loan with bad credit history was almost impossible with banks. Thankfully, times have changed and today there are loans for people with bad credit instant decision no fees more widely available.
Today it is almost impossible to not get approval for a loan even with poor credit history. Lenders realise the financial problems people face with households with below the average income steadily rising since 1994.
There are an estimated 14.2 million people in the UK living in poverty, 8.5 million of whom are adults. These people do not have the luxury of being able to save money for a rainy day and payday and short-term loans to cover unexpected outlays may be a lifeline.
Payday and Short Term Loans Are Popular Options
Payday and short term loans are two types of loans aimed at people with poor credit ratings who might otherwise not stand a chance of being able to borrow if something unexpected comes up and they don’t have the funds to cover it.
Find Loans for People with Bad Credit Instant Decision No Fees with Us
Here at Bonsai Finance, we understand the difficulty people with poor credit may have when looking for loans. The lenders we work with offer affordable loans, numerous loan options and some of the most competitive rates on loans.
Here are some of the main reasons why you might want to apply online for a loan with our help.
- Both types of loans can be applied for online within minutes;
- You can get a decision within minutes;
- We can provide access to a panel of lenders;
- You can make a single loan application and we search with a panel of lenders from the UK;
- You do not have to make multiple applications, which might have a negative impact on your credit file;
- If we match you with a lender, you could get access to money on the same day.
Providing you live in the UK, are over 18 years of age and have a regular income you can apply for a loan through us and we can try to match you up with a lender.
What to Expect From Loans for Bad Credit?
If you have a poor credit rating, you cannot expect miracles when it comes to obtaining approval for loans for people with bad credit instant decision no fees. By this, we mean you cannot expect to borrow many thousands of pounds and spread out the cost of the loan over several years. This is a luxury offered only to those with a good credit rating. However, with the lenders we work with it may be possible to borrow up to £5,000 and spread the repayments over 36 months. The amount you may be able to borrow is going to depend on your personal circumstances and ability to repay. This is something all ethical lenders will check. Being realistic, you can also expect to be offered loans with higher rates of interest, but the lenders we work with offer some of the most competitive rates for people with poor credit.
You Know Exactly How Much Payday Borrowing Costs
Payday loans are a popular type of loan to apply for with a poor credit rating if you need between £100 and £500, and you know exactly how much the loan is going to cost you before signing up for it. This means you, and the lender will be able to work out if it is affordable.
The total amount of the payday loan is worked out as interest is paid on a daily basis. Therefore, if you take the loan over 30 days (1 month) the lender will apply interest for those 30 days.
As a rough guide for every £100, you borrow with a payday loan you can expect to pay around £24 back per month on top of the original loan amount. Of course, the longer you spread the loan over, up to three months, the more interest you will pay.
To some people, this rate may seem high, however, bear in mind that payday loans offer instant decisions and funding from the loan can be paid into your bank on the same day. If you need money fast to pay for something unexpected it may be well worth it and might even save you money in the end.
For example, if you want the loan to get out of an unauthorised overdraft so you do not have to pay huge fees or to get your car back on the road so you do not have to pay out for public transport and repair costs when you are paid.
Short Term Lending For Up To 12 Months
An unexpected financial outlay may come up leaving you needing more than £500. In this case, you might be eligible to take out a short term loan.
Short term loans are spread out for up to 12 months and generally, you can borrow in the region of £500 to £1,000. The loan is more affordable as you do not have to repay it within three months but it is not hanging over your head for longer than 12 months as it might if you apply for a personal loan.
As with the payday loan, you will know exactly how much the loan is going to cost you over the term you choose with the short-term loan. You will know how much the monthly repayments will be so there will be nasty surprises.
Just because your credit rating is not as perfect as you might want it to be, it does not mean that you cannot get a helping hand financially for small sums of money. We work with a panel of lenders who consider all circumstances. The lenders we work with may be able to offer loans for people with bad credit instant decision no fees to help tide you over.