You might suddenly find yourself in need of some extra cash to pay an unexpected bill or repair a major appliance that has broken down. In this case, an instant decision loan would come in very handy. However, what if your credit rating is less than perfect is it possible to get bad credit loans online instant decision? Yes, it is.
What Are Bad Credit Loans?
The title bad credit loans can be misleading as there is no specific loan with that name. Any loan can be applied for if you have a bad credit rating; it is just that you are more likely to get approval for some types of loans than with others.
Loans that may be approved easier if you have a bad credit rating include payday, short-term and guarantor loans. It may be possible to be approved for a personal loan but it would depend on several factors. This would include your credit rating, the sum of money you want to borrow, and your ability to repay the loan.
What Defines Bad Credit?
The definition of bad credit may also differ between lenders. You will be given a credit score based on your past lending history and lenders in the UK will consider this as they have to by law. Some of the things that affect your credit score are:
- Whether you have any CCJs against you;
- The number of credit accounts you have open;
- Whether you have missed any repayments on past loans or credit cards;
- Whether you have been late with repayments;
- Whether you are on the electoral roll – this proves who you are and that you live in the UK.
The good news is that the panel of lenders we work with will also consider your circumstances at the present when deciding if you can have a loan. This means they will look at how much you bring in each month and how much you have to pay out. If they think, the loan is affordable your chances of being approved are good, regardless of your credit score. Different lenders have different thoughts on what a bad credit score is, so one might think your credit score is bad while another might class it as being poor.
Applying For Bad Credit Loans Online Instant Decision
The type of loan you apply for is going to depend on the amount of money you want to borrow. As mentioned before the payday loan, short-term loan and guarantor loans are the easiest to be approved for if your credit rating is not perfect.
What Is A Guarantor Loan?
If your credit rating is particularly bad and you need an instant decision loan you might be better applying for a guarantor loan.
Lenders will relax a bit more if you have a guarantor beside you as this lessens the risk of them getting the repayments back. It does mean that you have to ask someone to stand as the guarantor. The guarantor is someone who trusts that you will repay the loan; otherwise, they have to take over the loan repayments. With a guarantor loan, you may be able to borrow up to £5,000 and repay the loan for up to 36 months if required.
What Is A Short-term Loan?
A short-term loan is a loan that is paid back over the short term, i.e.., in months not years. The amount offered by lenders is usually in the region of £500 to £1,000 and is repaid back within a year.
There are benefits to a short-term loan and the biggest is that the interest added to the loan can be kept down as you are repaying it back within the year. The longer you take a loan over the more interest is added to the loan and the more you have to pay back in total.
As the loan is repaid back fairly quickly, lenders are more lenient and are more likely to take a risk by offering credit to people with poor credit ratings.
What Is A Payday Loan?
A payday loan is one of the easiest types of loans to get approval for if you have a poor credit rating. The amount of money borrowed is small, generally between £100 and £500. This sum of money, along with the interest accumulated, is repaid within one to three months. Interest is usually calculated daily as the loan is repaid back quickly.
This is a good choice of loan for anyone with a poor credit rating who needs to get hold of money fast in case of an emergency. People generally apply for payday loans if something unexpected crops up that they had not calculated for financially.
For instance, your car might break down and need repairing, you might get a puncture and need a new tire, a bill drops through the door and it is the final demand, a major appliance breaks down and needs fixing. Any of these instances would require you to get hold of cash fast and a payday loan could meet this requirement.
When considering a payday loan you do have to work out whether the loan is going to be affordable, as you will have to pay it back over one to three paydays. This means that when those paydays come around you are going to be short of cash after you pay the loan repayment. If you know you have enough money to cover the repayments and still have enough money to live on a payday loan can work as it was designed to work.
What Is A Personal Loan?
A personal loan or unsecured loan is usually taken out over a longer period of time and a larger sum of money is borrowed. If you have a particularly bad credit score lenders might not offer you a personal loan and instead suggest a short-term loan or guarantor loan.
With a personal loan, you might be able to borrow up to £5,000 and repay the loan over 36 months or so. This would be dependent on the lender offering the loan, your credit score, and other factors.
The APR on personal loans would vary. Again, this would depend on how much you borrow, the length of the loan, the lender and, your credit rating. Only people with excellent credit ratings have the luxury of receiving low APRs and the best deals. However, we do work with a panel of lenders who offer very competitive rates for all circumstances. Usually the lower the APR on the loan the less interest you can expect to pay.
How Long Does The Application Take?
Online loans are extremely easy and fast to make, as the whole process is undertaken online.
Before the majority of households had access to the internet people applying for loans had to ask their bank for a loan. This meant making an appointment, going to the bank, filling in paperwork and being asked lots of questions and if you were approved waiting for the money to be paid into the account.
Later when loan applications could be made online, some paperwork was still involved. You would fill in your details on the application and usually, the lender would email you back days later telling you whether you were approved or not. If you were, you would have to sign some paperwork, including a direct debit agreement, then send the papers back and wait for the lender to receive them. The whole process could take weeks before money was paid into the bank.
Today it is very different as in most cases the whole loan application can be conducted online, even signing for the loan electronically. We will match you up with a lender from the panel of lenders we work with and you can then look at the details of the loan and sign up there and then. You know within minutes if you are approved and money could be paid into your bank account on the same day.
Can Anyone Apply For A Loan Online?
Anyone can apply for a loan online regardless of his or her credit history. However, there are some criteria. For instance, all lenders ask that you:
- Are over 18;
- Live in the United Kingdom;
- Have a regular income;
- Have a bank account in your name in the UK;
- Own a debit card that is attached to the bank account;
- Have the ability to be able to set up a direct debit.
The lenders we work with will need some information from you, which includes the amount of income you have coming in each month and what you have to pay out in bills. This information is required, as it will help the lender to determine your ability to repay the loan.
Our panel of lenders will take your ability to be able to repay the loan into account along with looking at your credit rating.
How To Apply For An Instant Decision Loan
We have made applying for an instant decision loan as easy as possible. When time is of the essence and you need money in the bank quickly you don’t want to have to search online trying to find a lender willing to offer you a loan, filling in numerous applications, only to be turned down again and again.
This is where we come in. You can make a single application with us, using the sliders on our homepage to choose the amount you want to borrow and the repayment terms.
You then fill in the information needed by the lenders we work with, such as your name, address, age, bank account, debit card number, income, and outgoings and we then try to match you up with one of the lenders from a panel. The biggest benefit is that you only make a single application; you do not have to enter your details repeatedly. As we work with a range of lenders, all who offer affordable loans and numerous loan options, there is more chance of you being approved quickly than if you were to search for the loan yourself. This saves you a great deal of time and you know instantly if you are approved.
As you are only making a single application to search with multiple lenders for the best deal for your circumstances, repeated searches with multiple lenders are not going to be listed on your credit rating. Multiple searches on your credit file go against you.
Bad credit loans online instant decision are a few clicks away if you allow us to match you with a lender. It takes just a few minutes to enter some details, choose how much you want to borrow and how long you want to spread the loan over. You will be given an instant decision and depending on the lender and terms of the loan, you could have money paid into the bank on the same or next day.