Often people don’t want to commit to a loan over several years, and they don’t want to borrow a large sum of money. At the same time, they don’t want to apply for a payday loan, as they want to borrow more money than what the loan offers and spread the cost of repayments for slightly longer. This is where a short-term loan can come in very handy. So, is there such a thing as 12 month loans for bad credit no guarantor available for people with poor credit ratings?
Anyone with Any Credit Rating Can Apply for a Loan
There are no specific loans just aimed at people with poor credit ratings, despite what some lenders advertise and you see when you make a search for a loan.
However, there are loans that can be taken out over twelve months, but then people with good or bad credit can apply for them and loans of this nature do not require a guarantor.
While anyone with any credit rating can apply for a 12-month loan, there is no guarantee of being approved. Approval depends on certain factors; these include your credit rating and ability to be able to repay the loan. It also includes meeting criteria and this includes:
- Your age – you need to be at least 18 years of age at the time of applying for the loan;
- Having a UK address;
- Having a regular income – this may be from work or some types of benefits;
- You have a bank account in your name into which your income is paid;
- You have a debit card attached to the bank account in your name.
What Are 12-Month Loans?
As the name suggests they are a type of loan that is taken out which can be spread out over a 12-month period. This type of loan is often referred to as a short-term loan.
It is called that as it falls in the middle of the payday loan, which is repaid within one to three months and the personal loan, which can be spread out for up to 36 months.
People who generally apply for short-term loans don’t want to commit to a long-term loan but want some flexibility and to be able to pay the loan back for up to 12 months. This gives them ample time to pay it back without having too much interest accumulate on the loan, but giving them some breathing space from month to month when the repayment is taken out of their paycheck each month.
How Much Can I Borrow With 12 Month Loans for Bad Credit No Guarantor
Most lenders will allow you to borrow only a relatively small amount of money with a short-term loan.
This is generally between £500 and £1,000; however, it would depend on the lender, your ability to repay the loan and your credit rating.
Repaying a Short-term Loan
When signing up for the loan you agree to repay the loan for up to 12-months. When considering a loan of this nature you might want to check the terms of the loan to find out if you would be penalized if you wanted to pay it off early.
Some lenders will put in what is called an early repayment clause. This means that if you were to have a sudden windfall and be in a position to pay off the loan earlier than the agreed date, you would incur an early repayment fee.
This is a one off fee added onto the loan. Lenders generally add this fee in as if you pay the loan off early you are making savings on interest.
Interest Rates on Short-Term Loans
The interest rates on short-term loans will differ based on your circumstances so there is no one APR for all.
Anyone with a good credit rating will be offered the lowest rates on interest and vice-versa. However, on saying this we do work with a panel of lenders who offer some of the lowest interest rates on the market.
The lenders that we work alongside also offer affordable loan options along with checking that the loan is affordable.
Generally the lower the APR the least amount of interest you would pay.
Apply Online For Your Loan
One of the easiest ways to apply for 12 month loans for bad credit no guarantor is online. There are numerous benefits to applying with our help and they include:
- An instant decision;
- We try to match you with a lender;
- We work alongside a large panel of lenders;
- Lenders offer numerous loan options;
- Lenders offer some of the most competitive interest rates;
- Lenders will consider your current circumstances;
- Applying is quick and easy;
- If approved money is paid out fast.
Providing you meet the criteria for a loan in the UK, you can start your application online by telling us the amount of money you want to borrow and the term you would like to take the loan over. The term is the amount of time you want to repay the loan.
We will make a search to try to match you up with a lender from our huge panel of lenders and if the first cannot offer you a loan, we will move onto the next and so on.
You get an instant decision and can then check out the terms of the loan, including the total amount repayable, how much interest you would pay and the terms and conditions. If you are happy to go ahead with the loan, you can sign up with the lender.
You can apply online for 12 month loans for bad credit no guarantor and from just one single loan application, we can search with multiple lenders. This means you don’t have to search alone and make multiple searchers, all of which take time and which may be noted on your credit rating. Apply today for your short-term loan, it takes minutes to apply and you get an instant decision.