I need a loan with bad credit but I am wondering if there is a lender out there who is willing to give me one. This is a question that millions of people in the UK find themselves asking. So are there any loans out there for people with bad credit ratings and if so where might you look for one?
Not on the High Street
Straight off the bat, we will tell you where not to look if you want a loan and you have a bad credit rating. Do not waste time going from high street lender to high street lender. Unless you have a good credit rating, the majority of high street lenders, banks and building societies are not going to give you the time of day, let alone a loan.
Online Is Your Best Choice
Often the best course of action for finding a loan with bad credit is to look online. The internet has brought many favourable things right into the homes of almost everyone. You can keep in touch with relatives living thousands of miles away, pay your bills, shop online and even arrange a loan online.
Online loans are by far the easiest and most convenient way to obtain a loan whether you have a good or bad credit rating. In fact, online loans have been a lifeline for many who have found themselves suddenly short of money.
Below you can find some of the main benefits to looking for loans online with our help if you have a bad credit rating.
- We work alongside a large panel of UK lenders;
- You only have to make a single application in minutes;
- We can search with multiple lenders who consider a verifiable income instead of focusing on your credit score;
- You get access to lenders offering affordable loans with the most competitive rates;
- You don’t have to search yourself and make multiple applications all of which can have a negative impact on your credit file;
- The lenders we work with offer loans from £100 to £5,000;
- You will get an instant decision.
Lenders are going to consider your credit score along with your circumstances, there is no getting away from this. However, lenders realise that you might now be in a much better position to borrow and repay a loan than you were at the time of earning a poor credit rating.
Yes, there are some lenders willing to give you a chance based on the amount of income you have and what you pay out each month and will undertake an affordability check.
To do this they will detract what you payout for bills and money needed to live on and what is left is classed as disposable income. This money could be used to pay the loan.
I Need a Loan with Bad Credit But Only Want A Small Amount
If you need a loan but only need to borrow a small sum of money, your chances of obtaining approval are better than if you need a large sum.
There is a range of loans available online but some may be more suited to people with poor credit ratings than others might be. This is usually because certain loans offer only small sums of money and lenders are more likely to offer small amounts than large.
In this instance, you might consider a payday or short-term loan. Both loans offer limited amounts of money and are loans that are repaid within months.
Payday or Same Day Loans
Many people call payday loans same day loans. Yes, you guessed it. This is because they are loans that are paid out on the same day if approved.
This type of loan is suitable for anyone who wants to borrow in the region of £100 to £500 and who can repay the loan in a maximum of three months.
When considering payday loans bear in mind that:
- The loans accumulate interest daily;
- The faster you repay the loan the less interest is paid and the less the loan costs in total;
- The huge APR in thousands of percent is misleading as you will not pay that much interest providing you pay the loan off as agreed;
- You can spread the loan repayments for up to three paydays but the loan is going to cost you three times as much as if you repay it in one lump sum on one payday.
If you need a loan with bad credit to tide you over, due to a financial emergency, you need to make sure that the loan is affordable. Payday loans can become expensive if you continually roll the loan over as more fees and interest is added on.
Short-term 12 Month Loans
Short-term loans can usually be taken out for anything up to 12 months but this is going to depend on the lender.
With short-term loans, you might be able to borrow between £500 and £1,000. By spreading out the cost of the loan, it does make it more affordable to borrow a larger sum. However, you will have to continue to meet the repayments over a longer period and the loan is going to end up costing more the longer you spread it over.
The APR will determine the interest rate and generally the lower the rate the less interest you will pay and the cheaper the loan is in total.
Guarantor or Personal Loans
Guarantor and personal loans will allow you to borrow larger sums of money. A personal loan may be more difficult to obtain with a bad credit rating and a guarantor loan means you will have to find someone willing to be a guarantor.
This means they will have to take over the repayments in the event you cannot continue them.
So, in answer to your question, I need a loan with bad credit can I get one? The answer we work with lenders willing to consider all circumstances and verifiable income. We cannot guarantee you a loan but your chances do improve if you allow us to search with the panel of lenders we work alongside.
Here are some other interesting articles from out website:
Get a Loan With Bad Credit | What You Need to Know
How To Get a Loan With Bad Credit
Bad Credit Loan Lenders | Where and How to Find Them