The good news is yes it is possible to get a loan with bad credit as the title says. You might have got a bad credit score from the past but times might have changed for you and you might now be in a better position to be able to borrow and repay. There are lenders who will consider your current circumstances along with your credit rating and offer loans.
Things to Bear in Mind
There are some things to keep in mind when looking for bad credit loans. The first thing to take into consideration is that a typical loan offered to someone with bad credit is not going to have the lowest interest rates out there. However, if you apply for your loan with us, the lenders we work with offer some of the most competitive rates and affordable loans for those with a less than perfect credit score.
Generally, to be eligible to apply for a loan you need to be 18 at least, have a bank account, a debit card, have a regular income and live in the UK.
You do have to take care that the loan is affordable. To do this, you need to take any fees into account, including early repayment fees in case you want to pay off the loan early and any other costs associated with the loan.
Now onto the types of loans you might want to consider if you have a bad credit rating. These are:
- A small loan – typically called a payday loan;
- A short-term loan;
- A guarantor loan;
- A secured loan.
Small Payday Loans May Be Most Suited
A payday loan may be the most suitable type of loan for anyone to apply for if you have a poor credit rating.
This is because only a small amount of money is borrowed and it is repaid back over the short-term, usually within a period of one or two months.
The typical amount of money offered with a payday loan is between £100 and £500 but this is going to differ depending on the lender and your credit rating.
Borrow Over the Short Term
A short term loan may be suitable if you want to borrow up to £1,000 and repay the loan back under one year. Again, the amount borrowed and the repayment terms are going to vary between lenders and your actual credit rating.
If You Want To Get a Loan with Bad Credit Guarantee the Loan
If you can get someone to stand as a guarantor for you, you might wish to check out a guaranteed loan.
Lenders are more likely to consider this type of loan as there is going to be someone with a good credit rating to take over the loan repayments if you were to falter on them.
On the downside, the guarantor is risking their credit rating for you. If you fail the repayments, you will get a mark against your rating and the guarantor has to take over.
Secure the Loan
If your credit rating is very bad and you do not want a guarantor loan you might have to consider a secured loan.
A secured loan requires you to put your home up against the loan or something of equal value. The downside is if you cannot make the repayments you might lose your home.
Regardless of your credit rating, it is possible to get a loan with bad credit. The above loans are all suitable choices of loans; the most suitable would depend on your needs. We can search with multiple lenders to match you up with the most suitable loan for your needs.