If you have been wondering how to obtain bad credit loans no credit check you have come to the right place. Obtaining approval for a loan with a poor credit rating can be very difficult.
You might search online yourself only to be overwhelmed by the sheer amount of loans and lenders promising loans but when you visit the site, you have to fill in a lot of information and then have to wait around. You might be told they cannot help you or they offer you a loan you do not want. We can help you to decide which type of loan might be more suitable and explain what is involved with each.
First, let us look at some facts about loans.
- Lenders will make a credit check for any loan application;
- Payday loans or short term loans may be easier to get approval for as only small amounts of money are involved;
- If you apply for a loan with our help the panel of lenders we work alongside consider verifiable income not just credit ratings;
- If you apply with our help you only have to make a single application to access a large panel of lenders;
- There is no specific loan with the name of bad credit loans;
- Online loan applications are quick and easy;
- When you apply for loans online, if approved, money could be paid into your bank account often within hours.
Steps Needed to Obtain a Loan Fast Online
If you are in desperate need to get your hands on money fast, your best chance of finding approval quickly with a bad credit rating is to apply online with our help.
In order to apply for a loan you need to be 18 at least, have a UK bank account with a debit card and have a regular income. Lenders will consider an income to be money that is paid into your bank on a regular basis. This is money from paid work or some types of benefits.
If you meet the criteria, you can go ahead and make a loan application online. Just follow the steps below.
- Tell us the amount of money you want to borrow
- Tell us when you can repay the loan
- Provide us with a few details about yourself
- Tell us when you get paid and how much you get paid
- Tell us about your monthly outgoings
- We search with a panel of lenders and if we match you, you can go to the lender’s website and check the details out
- If the loan is suitable, you can sign up for the loan there and then without the need for paperwork
- Funds are sent to your bank account so you can access them.
The Types of Bad Credit Loans No Credit Check to Consider
While you cannot get a loan without having some type of credit check, there are loans where lenders will not focus too deeply on credit past. The panel of lenders we work alongside also factor in verifiable income and your current circumstances.
Certain loans might be more suitable for people with poor credit ratings.
- Short term
Each of the loans offers different sums of money and repayment terms so we are now going to look at each of them in turn so you get a better idea of which loan might be the most suitable.
Payday and Short term – Two Smaller Loans
First, let us look at two of the loan options if you only want to borrow what lenders class as a small sum of money.
These are the payday and short-term loans. As lenders only class these as loans offering small sums they are more lenient when it comes to approving the loans.
With a payday loan, which is often called a quick loan or same day loan, lenders may offer in the region of £100 to £500. This might vary between lenders and of course, the amount you might be able to borrow is going to depend on your personal circumstances and loan affordability.
The payday loan is a very popular loan among people with poor credit ratings and for many reasons. The loans are repaid back quickly, which means you do not have a long-term loan hanging over your head and they are usually paid out fast. Lenders usually allow you between one and three months to repay the loan.
It is in your best interest to pay back the loan in the shortest period possible. This way less interest is added onto the loan, with interest added daily. The less interest you pay the cheaper the loan is in total. You have to weigh this up against the fact that it might leave you short of money on your next payday, so do ensure the loan is affordable.
The short-term loan is also a loan that is paid back quickly, but then the name gives that away. However, you do get longer to repay the loan than with a payday loan.
Lenders will usually allow you to borrow up £1,000 with a short-term loan, providing, of course, you can afford the loan and have passed the affordability checks.
As the amount you are borrowing is more, you generally get longer to repay the loan. This is generally any time up to 12 months. Again, it pays to take out the loan over the shortest time possible as you will pay less interest and the loan will cost less in total.
Generally, the longer you take the loan over the smaller the monthly repayments but the more the loan costs in total.
Guarantor and Secured – Two Options for Larger Loans
The payday and short-term loans are two loans that may be suitable if you only require a small amount of money and can repay it back quickly. However, what if you want to borrow a larger sum of money and spread it over years.
If you do need a larger sum of money, you might consider a guarantor or secured loan.
Neither of the options is as flexible as the payday and guarantor loans and the lender will usually want to take a deeper look into your credit file. This is due to the fact you are asking to borrow a larger sum and spread the cost of repayments for longer.
With a guarantor loan, you might be able to borrow thousands of pounds over the years. However, the guarantor loan is not without issues and careful consideration has to be given to the loan.
Points to bear in mind when considering a guarantor loan are:
- You cannot apply for the loan on your own you need a guarantor
- The guarantor cannot be a spouse or partner
- The guarantor has to be over the age of 18
- They have to meet all the eligibility criteria
- They have to have a good credit rating
- The guarantor is signing up to take on the responsibility of the loan if you cannot repay it.
Guarantor loans generally have a higher rate of interest than personal or secured loans, so this means the loan will cost more. However, it may be the only loan available for someone with an extremely poor credit rating.
It pays to check the APR of any guarantor loan as this will determine how much you pay in interest. This is the annual percentage rate. It is the percentage of interest added over the year.
Another type of loan generally taken as a last resort is the secured loan. Again, this type of loan needs some serious thought. You do not need a guarantor for this type of loan but the lender is going to ask for something of value that you can secure against the sum of money being borrowed. In most cases, this is a vehicle or your home.
However, the downside to a secured loan is if the repayments are not met each month the lender can take possession of whatever you secured against the loan.
If you are only looking to borrow a small sum of money, lenders are more lenient and willing to consider your verifiable income so they may not look too deep into your credit history. In this case, the payday and short-term loan may be better choices of loans.
If you need a larger loan of thousands of pounds, you might have to consider a guarantor or secured loan but these loans do come with risks.
One of the easiest ways to apply for bad credit loans no credit check is online and we can help to match you with a lender from a large panel of lenders. From a single application, we can search with multiple lenders, all who offer numerous loan options, affordable loans and some of the most competitive interest rates for your circumstances.