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Loans for People with Bad Credit Instant Decision No Fees
15 Jan 2019

Loans for People with Bad Credit Instant Decision No Fees

Your old second-hand car might be on its last legs or your daughter tells you she is getting married and you do not have sufficient cash to pay for the wedding she desires. In either of these cases, a loan would come in handy. The downside is that you have a bad credit rating so you won’t be able to apply for a loan, right? Wrong, in fact, you might be able to apply for loans for people with bad credit instant decision no fees to pay.

Yes, you read it right; there are lenders out there who do not put too much focus on how bad your credit rating is. Instead, they take into account your ability to repay the loan through the income you have coming in. In fact, the lenders that we work with consider anyone, regardless of a bad credit rating.

The Benefits of Looking For a Loan with Our Help

There are many benefits to looking for a loan with our help if you have a bad credit rating. These include:

  • We are experts in the field of personal finance in the UK;
  • We work with numerous lenders who don’t focus on your credit score;
  • The lenders we work with offer numerous loan options even for those with a poor credit history;
  • Our lenders offer affordable loans;
  • Our lenders offer competitive rates for your circumstances;
  • The online loan application process is simple and easy, just a few minutes;
  • You get an instant decision about the loan application;
  • If approved money may be paid into the bank within days;
  • You may be in a position to borrow between £100 and £5,000.

If you make a search online by yourself, you could be left floundering, as the search will reveal so many options for loans and a vast amount of companies offering loans. However, not all lenders are equal; there are even scammers who ask for a fee up front for loans, so it pays to search for a loan with an expert in personal finance within the UK and Bonsai Finance is just that.

What Types of Loans for People with Bad Credit Instant Decision No Fees Are Available?

Our lenders offer a variety of loans suitable for people with bad credit who want an instant decision and no crippling fees attached.

So what types of loan might you be eligible to apply for with a bad credit rating? There is a payday loan, short-term loan, unsecured personal loan, and a guarantor loan. The most suitable loan is going to depend on two factors:

  • How much you want to borrow;
  • How long you need to repay the loan.

If You Need to Borrow a Small Sum of Money and Repay It Back Fast

There are two types of loan you might be interested in if you want to borrow a small sum of money and can repay it fast. The most apt is going to depend on the amount you want to borrow. There is the:

  • Short term loan;
  • The payday loan.

First, we will look at the payday loan. This type of loan may be suitable for anyone who needs to gain access to a small sum of money, usually from £100 to £1,000. The payday loan comes with the shortest term as the loan and any interest is usually repaid back between one and three paydays. Essentially this is a loan of up to three months.

The payday loan has been associated with having a higher rate of interest due to the fact that interest is payable on a daily basis. Therefore the shorter the term of the loan the less it is going to cost in interest. If taking out a payday loan, make sure that there are no fees attached if you want to pay the loan back early.

A payday loan should be thought of and used only in situations where emergency cash is needed fast.

The short-term loan can be taken out over a longer term than the payday loan but not as long as you might stretch a personal loan over. We work with lenders offering competitive interest rates for people with bad credit, but the interest rates will be higher if you have a poor credit rating than they would if your credit rating was good.


Both the short term loan and payday loan may be able to help you increase your credit score. Of course, this is dependent on whether you repay the loan on time and do not miss payments or pay late.

Unsecured Personal Loan

An unsecured personal loan is another option to consider. Our lenders may offer loans up to £5,000 and the repayments could be spread out over 36 months. The longer you take the loan out the more interest you pay.

Generally, when taking an unsecured personal loan you will need to find a line between paying more interest by taking the loan out for longer, ensuring it is affordable. Alternatively, take it out over a shorter term, which usually means the monthly repayments are higher but less interest is paid. This is something that needs to be addressed carefully.

As with the payday and short-term loans, there is usually a quick decision when applying for a personal loan.

Loans That Require a Guarantor

Our lenders do not put much focus on your credit rating but there may be times when they cannot offer you a personal loan or short-term loan. In this instance, you might want to consider a guarantor loan.

A guarantor loan means that the borrower will have to find someone, usually a relative or friend, who is willing to be the guarantor. Being a guarantor means that they agree to take over the loan repayments or pay the loan off if you find you cannot manage the monthly repayments.

While the plus side with the guarantor loan is that there is more chance of you being approved for the loan even if your credit rating is very bad, there is also a downside. The downside is that you might not want to ask a relative or friend to stand as a guarantor. Asking someone to be your guarantor can cause ill feelings and it has been known to ruin friendships.

While all loans should be given plenty of thought and consideration to ensure you will be able to meet the repayments, the guarantor loan definitely needs consideration. Bear in mind that if you ask someone to stand guarantor and you fail to meet the repayments so the loan falls on them, it can affect their credit rating.

Steps to Take To Improve Your Credit Rating

Types of Loans for People with Bad Credit If you cannot get a loan due to your credit rating being extremely bad there are some things you do to better your rating before applying again for a loan. These include:

  • Check your own credit file to make sure the information is correct;
  • If there are mistakes on it contact the lenders to get it removed;
  • Check if you have been linked to bad credit through a partner and disassociate yourself from them and tell the credit reference agencies;
  • Make sure you are on the electoral roll. Lenders will check this to find out if you are who you say you are and not being on it is not good for your credit score;
  • Close any open credit accounts you have such as store cards or mobile phone contracts you don’t use;
  • Consider applying for a prepaid credit building card to rebuild your credit rating;
  • Do not apply for credit too many times if you are turned down until your credit rating has improved.

In Conclusion

Applying for a loan with us, even if you have bad credit, is fast and easy. All you need to do is choose the amount you wish to borrow, between £100 and £5,000 and choose the length of time you want to repay the loan. This is generally between 3 and 36 months.

Fill in details of your personal information such as your income and what you have going out each month. Provide us with information about your bank account along with your debit card. The lender will need this information to pay the money into your account and take the repayments if you are approved for the loan.

We will then search with our panel of lenders to find lenders willing to offer loans for people with bad credit instant decision no fees. It is as easy and stress-free as that and of course, you are not left waiting to find out if the loan has been approved or not. Contact us today to find out how much you could borrow.