How easy is it to get a loan with bad credit in the UK? This is a question regularly asked but there is no easy answer. Whether or not you find approval for a loan is going to be dependent on a wide range of things. However, your chances of finding approval may improve if you look for a loan online and do it with our help.
We are not going to lie to you, depending on how bad your credit rating is will depend on how difficult it is to get approved. There is no guarantee of getting a loan, but then the same applies to people with good credit ratings too.
Factors that determine loan approval include:
- The amount you want to borrow;
- How long you want to take the loan over;
- Your credit rating;
- Where you look and apply for a loan.
The Amount You Want to Borrow Affects Approval
One thing that can make a difference to approval is how much you are asking to borrow. There are different types of loans for different circumstances, all with limits as to how much you might be able to borrow.
- Payday loans usually offer between £100 and £500;
- Short-term loans may offer up to £1,000
- Guarantor and personal loans could offer up to £5,000.
As a general rule of thumb, the lower the amount you want to borrow the higher the chance of you finding approval.
Lenders are more likely to offer a loan of say, £200 to someone with a poor credit rating than a £2,000 loan. This is because lenders class it as a small sum of money.
Therefore, one of the easiest types of types of loans to find approval for when you want to get a loan with bad credit is a payday loan. If you need to borrow more than what lenders offer with a payday loan you might consider a short-term loan.
If you need a larger sum of money, a guarantor loan might be the most suitable option. This type of loan requires you to get someone to stand by your side to guarantee they will take over the loan repayments if you should find them unmanageable. There is a personal loan but if you have a poor credit rating, it may be more difficult to obtain one.
The Term of the Loan Affects Your Approval
While how much you borrow affects approval, the term of the loan also affects approval.
Lenders are going to be more wary if you want to borrow money over a longer period than they are if you can repay the loan back quickly.
This is another reason why payday loans are popular with people who have poor credit ratings. With a payday loan, you are going to be borrowing between £100 and £500 and repaying it back within a period of one to three paydays or months, assuming you are paid every month.
The lender takes the repayment from your bank account on your next payday or over three paydays if you want to spread the repayments out to make the loan more affordable each month. Of course, the downside is that you will pay more in total for the loan by spreading it out.
With payday loans, one to three months, your circumstances should not change that much during this period and so you are not seen as too big a risk.
If you were to apply for a loan over years, there is more chance of your circumstances changing and so the lender sees you as being a bigger risk.
Your Credit Rating Affects Approval Rate
Your credit rating is going to affect the approval rate of loans. We do work with a panel of UK lenders who do not focus entirely on your credit rating, but they will still look at it. The smaller the loan, generally the less they are bothered by your credit past.
However, your actual rating is going to depend on approval for the type of loan you require. In some circumstances, you might have to consider a guarantor loan.
Get a Loan with Bad Credit by Us Matching You with a Lender
If you want to make it easier to find approval for a loan with a poor credit rating you might consider allowing us to search with the panel of lenders we work alongside.
Finding a loan might be easier than searching for one yourself as we can try to match you with a lender who can offer you the loan you need and only one application is needed.
If you were to search online yourself, you might have to fill in numerous loan applications before finding a loan, if you find one at all. We can make this part so much easier as you gain access to multiple lenders and you get an instant decision.
The steps to finding a loan with our help are easy and it takes just minutes to gain access to a wide range of lenders.
- Tells us the amount you want to borrow
- Tell us how long you would like to borrow the money
- Give us some personal details including age, address, income, outgoings, bank account and credit card details
- We will search within a panel of lenders and give you an instant decision
- If we match you with a lender you can check out the details of the specific loan before deciding if it is right for you
- Sign up for the loan and have the funds paid directly into your bank account.
One of the biggest advantages to us helping you find a loan is that the lenders we work alongside offer some of the best rates of interest for your circumstances. They also consider verifiable income along with credit scores and pasts and they offer numerous loan options.
Want to find out how easy it is to get a loan with bad credit? Apply with our help today and get an instant decision.
Here are some other interesting articles from our website:
Very Bad Credit Loans No Guarantor
Can I Apply For Debt Consolidation Loans Bad Credit No Guarantor?
Loans For Bad Credit No Guarantor On Benefits
Is There Such A Thing As No Credit Check Loans No Guarantors?
Loans For Bad Credit No Guarantor
Will I Be Approved For Loans For Bad Credit Uk No Guarantor?
Loans For Bad Credit No Guarantor On Benefits – Are Such Loans Possible
What Are Quick Loans Bad Credit? Here Is Everything You Need To Know