Anyone looking for a loan with bad credit is going to be worried lenders looking into their credit rating. This is only natural but, just because your credit rating is not at its best does not mean all lenders will turn you down, even if they do check your credit file. The question here is whether there is such a thing as loans for people with bad credit instant decision no fees and we are going to attempt to answer that question.
It might be easier to break this down into sections. We will look at:
- Is there a specific loan for bad credit?
- Are there loans with instant decision and no fees?
- Advantages of using a broker
- Types of loans available for poor credit
- How to apply for a loan
Are There Specific Loans for People with Bad Credit?
There is not a loan out there specifically aimed at people with bad credit. So, the answer to this question is, no there are no specific loans with the title of “bad credit loans”.
However, before you get disheartened you should be happy to hear that there are loans that people with poor credit ratings might be more likely to be approved for. It goes without saying that if you have a poor credit rating the lender is more likely to consider your application if you apply for a small sum of money than if you apply for many thousands of pounds.
This is because the lender would not be taking too big a risk on you being able to pay the money back as it is only a small sum. This is not to suggest that you cannot get a larger loan, just that it may be more difficult to be approved for one. So, with this in mind, a payday or short-term loan may be more suitable if your credit rating is poor.
Loans with an instant decision and no fees
You can certainly get a loan with an instant decision and more so if you elect to allow us to try to match you up with a lender from a huge panel of lenders in the UK.
However, in regards to fees, almost all loans will have some fees included in the terms and conditions.
One of the most popular types of fees is an early repayment fee. This is a fee added on to the amount borrowed in the event you find you can pay the loan off early.
Another type of fee is that of a broker who is looking for the loan for you. While this may be a fee you would rather avoid, it may be well worth paying a small fee of this nature.
10 Advantages to paying a small brokers fee
There are many advantages to having someone like us match you up with a lender if you are looking for loans for people with bad credit instant decision no fees and these include:
- We save you time and stress
- Loans come with an instant decision
- We can match you with a lender from a wide panel of UK lenders
- From just one application you can access numerous lenders so your credit file won’t be affected by multiple searches
- It takes just minutes to apply for a loan
- We work with lenders offering numerous loan options
- Lenders consider your current circumstances
- Lenders offer affordable loan options
- Lenders offer some of the most competitive rates of interest
- You could have the money paid into your bank on the same day.
So, What Types of Loans for People with Bad Credit Instant Decision No Fees Are Available?
Two of the most common types of loans that people with poor credit ratings might find easier to get approval for are the payday and short-term loans.
Both allow you to apply to borrow a small sum of money and the money is paid back quickly.
Let’s look at the payday loan first as this is one of the most frequently requested of all loans made by people with a poor credit rating.
The Payday Loan
With a payday loan, you might be able to borrow between £100 and £500. In most cases, people apply for payday loans to meet emergency financial outlay. This may be to pay a bill that has dropped through the letterbox unexpectedly or to pay for repairs to a vehicle or replace a tire that has blown. You might need money to cover repairs to a household appliance you cannot manage without such as your cooker, freezer, or you might need money to pay off an unexpected overdraft.
Lenders don’t usually ask why you want to borrow money and you could apply for a loan for any reason. It doesn’t have to be one above.
The payday loan is usually paid back on your next payday or lenders will enable you to spread the cost over up to three paydays. Bear in mind interest is added daily so the loan becomes more expensive the longer you take it out.
Another factor regarding the APR is that it is shown as thousands of percent. The APR stands for annual percentage rate and in this case, you are not taking the loan out over a year or more. In fact, you are only taking the loan out for between one and three months. Therefore you will not pay thousands of percent in interest.
Payday loans can become expensive if they are rolled over as you find you cannot afford the repayment when payday comes around, but providing you repay on time they can work as intended.
A short-term loan
With a short-term loan, you might be able to borrow in the region of £500 and £1,000. Again, lenders do not usually want to know the reason why you need the money.
The short-term loan might be spread out for up to 12 months, but this would depend on the lender and your credit rating.
You have to bear in mind that interest is going to be added onto the loan so check the APR. The APR is the annual percentage rate and usually, the lowest rate means the less interest you pay.
As we mentioned before many loans come with some fees in the terms and conditions so when considering a short-term loan check if the provider adds in an early repayment fee. This is important as if you are lucky enough to be in a position to pay off the loan earlier than the agreed date you could save yourself money in interest. However, with an early repayment fee clause, the added fee could wipe out any savings.
A Guarantor Loan
Another option for a loan for people with a poor credit rating is the guarantor loan. We have left this type of loan while last as it is not as popular as the other two types.
However, it may be a solution if your credit rating is particularly poor and you need to borrow up to £15,000 and cannot get a personal loan.
When considering a guarantor loan you need to be able to talk to a third party about your financial problems. This means a friend you are close to or a family member. However, this cannot be your spouse or partner.
Guarantor loans can cause issues in relationships, more so if you find that you cannot pay the loan and the repayments fall back onto your guarantor. This is one thing that the person standing as a guarantor should be made fully aware of by both you and the lender.
When applying for a guarantor loan both of you have to meet the typical criteria for loan applications in the UK and the guarantor should have a good credit rating.
How to Apply Online for Your Loan
It has never been as easy to apply for a loan as it has today. The internet has countless uses and one of them is gaining access to fast loans that are often undertaken without paperwork online.
One of the biggest advantages to apply online is that you do not need to wait around for paperwork to arrive for you to sign it and send it back. All of this can take a week or more and this is not good if you need money now.
To apply with our help so we can match you with a lender from a sizable panel all you need to do is tell us how much you want to borrow and how long you want the loan over. Provide us with:
- Your full name;
- Age – you have to be at least 18;
- Address – you have to live in the UK;
- Your income and outgoings – you have to have a regular income;
- Bank and debit card details.
We can then search for a loan on your behalf. You get an instant decision and if approved you can sign up the lender. That is all there is to it.
You get access to lenders offering the most competitive rates of interest along with numerous loan options and affordable loans for people with bad credit instant decision no fees.