Having a bad credit rating is no fun if you find yourself short of money and cannot get a loan. Thankfully, there are small loans for bad credit. This product is aimed at those specifically with bad credit, but how can it help?
Small loans may be the most suitable way of entering back into the loan market if your credit rating is low and you need to get your hands on cash fast. There are many benefits to loans such as these.
Small Loans Give You Money Quickly Over a Short Time Frame
The first benefit to getting approval for a small loan if you have a bad credit rating is that you are more likely to get approval than if you go for a loan for a vast sum of money. A small loan is typically classed as anything from £50 to £1000; however, this sum may vary between lenders. The amount offered may also depend on how poor your credit rating is.
There may be many reasons why you need to get your hands on money quickly. Perhaps your car has not passed its MOT and you need money fast to have it repaired. You might have forgotten about a bill that needs paying before you get paid again. In any of these cases, small loans for bad credit may help you to get the money you need along with bringing other benefits.
Repaying a Small Loan Might Help to Improve Your Credit Rating
Your credit rating may be affected by many things. Often you will not realise you have a poor rating until you apply for credit. Your credit rating may have been affected by such as:
- Missing a payment or being late in making payments;
- Declaring bankruptcy;
- Entering into an IVA (Individual Voluntary Arrangement);
- You have a CCJ (County Court Judgement).
By applying for and being approved for a small loan, even with a bad credit rating, and repaying the loan on time, you might be able to improve your credit score. It helps to improve it as it shows lenders you are being responsible with lending. Of course, failure to repay the loan on time or missing repayments is going to have a negative effect against your credit rating, therefore, ensure the loan is affordable.
Small Loans for Bad Credit with Fast Approval
If you need to get your hands on cash fast, for instance, if your freezer has broken and you need it repairing, a small loan may be beneficial. Loans of this type are often approved faster without the need for the company to send out paperwork. Some small loans may be approved the same day or within hours.
When borrowing a large sum of money with a typical loan over 5 plus years there is a lot of paperwork to sign and this takes time. The small quick loan may allow you to get the money in your bank within hours.
Finding Small Loans the Easy Way
There are many lenders on the market but finding ones who may be willing to offer you a small loan when you have bad credit is going to take time if you do it alone. There is another solution and this is with us, Bonsai Finance. We work with a huge range of lenders, many who specialise in offering small loans specifically for people with bad credit ratings.
Applying for a small loan with our help brings many benefits. The lenders we work with are known for offering affordable rates even to those with poor credit history. Applying for a loan is simple and easy, undertaken online, with our lenders looking at your income, not your credit rating. We, along with our lenders, understand having a poor credit rating is limiting when needing money fast. Bonsai Finance can help you to secure small loans for bad credit to meet your circumstances so you can get your finances back on track.