Applying for and receiving approval for a loan if you have bad credit is never going to be the easiest thing in the world. Lenders line up to offer loans to people with a good credit rating, offering some of the lowest interest rates and best deals out there, but sadly this is not so for people with a poor credit rating. This is not to suggest that people with a poor credit rating cannot get a loan. Some lenders do take your current circumstances into account, not just your credit rating. So here is how to get a loan with bad credit.
First Check Your Own Credit Rating to See Where You Stand
One of the first things you should do when considering taking out a loan is to determine just how bad your credit rating really is. You might have been turned down for credit in the past with the lender telling you it was because of your credit score. However, this does not tell you your credit score, just that the lender looked at it and thought it was bad.
There are free websites offering services to check your credit rating and this is not going to have an impact on your credit rating. So look at your credit rating and then decide if you wish to proceed with your loan application or try to improve your credit rating first.
What Type of Loan?
You will need to decide what type of loan you want to apply for. There are different choices with some being easier to find approval for if you have bad credit than others. You might want to consider:
- Payday loans – usually between £100 and £500 paid back over 1 to 3 months;
- Short-term loans – usually up to £1,000 paid back for up to 1 year;
- Personal loans – usually up to £5,000 paid back over 36 months;
- A guarantor loan if your credit rating is really poor;
- A secured loan if your credit rating is very poor and you want to borrow a larger sum of money.
Move On To Applying For Your Loan
If you still want to go ahead with the loan application, you can choose to search alone using a search engine or you can allow us, Bonsai Finance, to help you to find an affordable loan with one of the panel of lenders we work alongside. There are many benefits to choosing us, with one of the biggest being due to the fact that you only have to make a single application to search with numerous lenders.
To apply for any loan you do need to meet certain criteria. This includes:
- Be over the age of 18;
- Live in the UK;
- Have a bank account in the UK;
- Have a debit card;
- Have a regular income;
- Be capable of setting up a direct debit.
The Steps for How to Get a Loan with Bad Credit
If you meet the criteria to be able to apply for a loan you can then move on and follow the simple steps below to apply for your loan.
- Choose the amount you wish to borrow and the term you want to pay the loan back over;
- Fill in any details asked for by the lender, including your address, bank account number, debit card number and so on;
- Wait while we match you up with a lender from the panel we work with;
- Check out the terms and conditions of the loan, including any fees, to ensure it is affordable;
- Sign up for the loan with the lender once you have checked the details of it;
- Make a note of the monthly repayment or repayments and ensure money will be in the bank for the lender to take the monthly repayments;
- The money is paid into your bank account, usually within hours or by the next day;
- Make sure you repay the loan in full and on time to avoid a bad mark against your credit score in the future.
As you can see the question, how to get a loan with bad credit is easy to answer when you choose Bonsai Finance to help you secure that loan. We work with ethical lenders offering numerous loan choices and affordable loans based on verifiable income not just your credit rating.