Warning: Late repayment can cause you serious money problems. For help, go to moneyadviceservice.org.uk
We are an authorised credit broker, and not a lender.

Loans For Bad Credit

You all have ups and downs in life, and financial stability is not something most of you could afford for, that along with a family to run. Some of you might have met with a dead end when you seek assistance as a loan. We at Bonsai Finance have come across countless individuals who were rejected at all ends with respect to loans, but do not worry any further as this is no more your battle but ours.

We have an impressive range of lenders as financial partners. Our state-of-the-art technology driven service is internationally reputed. Especially for bad credit loans.

Do not hesitate to apply for a loan with us if you have a bad credit, because we pride in directing your timely need for a bad credit loan towards the best lender with the least interest rates. Our rich portfolio of satisfied clients are our treasured achievement, and we are proud to be the financial middlemen contributing towards an enriched future for the people of the United Kingdom.

Bad credit loans for people with bad credit & how they work

loans for bad credit ukThe government of the UK will grant a credit score based on an individual’s financial commitments and how well or poorly he or she managed the finances to date. The lucky are those who scored positive on the credit history, but then there is you. Many things such as late repayments, late bill payments and avoiding due payments might have contributed towards a bad credit score. Financial institutions and money lenders do not prefer to approve loans for people with bad credit, as the bad credit clearly indicates a risk for repayment based on your negative history.

Alternate to credit check loans, people now can apply online for a short-term loan with bad credit or long-term loans with bad credit, though the downside is the higher than normal interest rates imposed on your repayments. In addition to this is the complicated process and poor judgement from your end to pick the right choice for your lending needs. But we at Bonsai Finance draw the lines in between the customer and the lender exercising our decade-long expertise on personal finance and how to pick the most suited financial partner for you based on your concurrent situation.

Long term loans for bad credit & short term loans for bad credit

Some of you who moved into the UK might not have a big credit history, and for those of you who have a bad credit as residents of this country, Bonsai Finance is your partner in progress. Simply fill in our loan application with ease and wait for a decision within minutes from submission. Our advanced algorithm will do the hard work to generate the best matches for your loan with the lowest rates. Long-term loans with bad credit and short-term loans with bad credit can be made a reality with Bonsai Finance by your side.

Basic requirements for obtaining Bad credit loans

  • Be at least 18 years old
  • Be a resident of the UK
  • A valid UK bank account
  • Be full time employed with a continuous income

Loans for people with bad credit

The good thing about bad credit loans is the luxury to be accepted by a potential lender who solely relies on your promise to repay it back without any guarantee. This process is short and simple when you go through Bonsai Finance, as our technology-driven website will direct your query based on positive evaluation practices of our prime partners.

You can also use this bad credit loan to improve your overall credit score by making on-time payments and being consistent with this loan scheme. This could eventually boost your credit history, hence progress and increase your chances for future monetary requirements.

The Choices for Loans for Bad Credit UK

There are choices for loans for bad credit UK. While lenders on the high street are not so upcoming in offering loans to people with a less than perfect credit rating, the lenders we work with are more lenient. So what types of loans for people with bad credit are offered in the UK? The loan that might be better suited to you is going to depend on certain factors, these include:

  • The amount of money you are looking to borrow;
  • The period you want to spread the loan repayments over;
  • The state of your credit score.

We say this, as different loans have different criteria that need to be met. We shall explain this below so that you know the most suitable type of loan to apply for. The types of loans you might want to apply for include the payday loan, the short-term loan, and the personal loan. As we work with a panel of lenders, there is more chance of our being able to find a lender who will offer you a loan. While one lender might turn you down based on your circumstances, another might not.

Which Loans for Bad Credit UK Might Be More Suitable If Your Credit Rating Is Very Poor?

All UK lenders do have to look at your previous borrowing history and this is your credit rating. This is something they have to do by law. No lender in the UK will offer you a loan without first checking your rating, but there are different types of credit checks. Depending on the amount you wish to borrow, say a small sum, lenders might only undertake a soft credit check, while others might make a thorough check, more so if you want to borrow a larger sum of money. This should not put you off from applying for a loan with the help of Bonsai Finance as the lenders we work with also consider your current circumstances. This means that even if you have a poor credit rating you might still be eligible for a loan.

If your credit rating is extremely poor, the choices of loans are going to be somewhat limited. More than likely lenders chance to borrow £5,000 and spread it out over 36 months. Lenders may not offer you a personal loan but they may be prepared to offer you a smaller amount and pay it back quickly. Anyone with a very poor credit score might be better off considering and applying for a small loan. This is referred to as a payday loan.

The payday loan is a loan that lenders offer people with very bad credit and it is usually in the region of £100 to £500. The loan is taken out between one and three months, usually by repaying a portion of the loan and interest on each payday. Interest for the payday loan is calculated daily instead of annually, so the earlier you repay the loan the less interest is paid.

The percentage of interest may look staggering at first sight. The APR on a personal loan can be as low as APR 3.99% for someone with a good credit rating. However, the typical interest rate on a payday loan might be in the region of APR 4670%. While this is a big difference bear in mind that you are not paying the loan back over the long term, so this APR would not apply.

The payday loan can come in very handy if you find yourself suddenly short of money and your next payday is still some time away, hence the name.

The Short-Term Loan Spread over Slightly Longer

As the name of this loan suggests, it is a loan taken out over the short-term. Lenders may allow you to borrow between £500 and up to £1,000, but this is going to depend on the lender and your circumstances.

The short-term loan can be repaid over longer terms than the payday loan; however, this is not a loan that offers the opportunity to spread the repayments over several years, as with the personal loan.

A short-term loan can be applied for if you need to get your hands on cash quickly but you want to borrow more than what you would with a payday loan and spread the repayments over longer.

A Personal Loan with Borrowing Up To £5,000

You may be eligible to apply for a personal loan with the lenders we work with, borrow up to £5,000, and spread the cost of repayments for up to 36 months.

When considering a personal loan you will need to take into account that the interest may be fixed or variable. If possible, go for a loan that has a fixed rate of interest, as the interest rate is the same throughout the term of the loan. This way you know how much interest is going to be acquired on the loan and what the monthly repayments are.

If the personal loan has variable or flexible interest rates, the interest rate can go up dependent on the Bank of England rates. This can work against you if the rates go up but if they go down you will lose out, as you would have been paying less on interest.

Therefore, there are pros and cons to taking out a loan with a fixed rate and variable rate but the fixed rate does allow you to budget and you do know exactly where you stand.

In Conclusion

As you can see from above people with a poor credit rating do have choices when looking for loans for bad credit UK. We work with a range of lenders who offer loans for people with bad credit as they consider the current circumstances of people, not just the mistakes they made in the past which show on their credit file. Providing you have a regular income, from a job or benefits, there is nothing to stop you from applying with our help. Just choose the amount you want to borrow, how long you would like to take the loan over. We will then match you up with our range of lenders to find one who will give you a loan.