There is such a thing as loans for people with poor credit; these are generally short term loans or payday loans. Depending on how poor your credit rating is will depend on whether you will be given a personal loan. If your credit rating is very poor and you need a larger sum of money the guarantor loan might be what you need. These four types of loan can come in very handy but which might be better suited to you?
Reasons Why You Might Need a Loan
Any number of reasons might have you applying for a loan. You might:
- Be faced with an unexpected bill and it is the final demand;
- Your car might have broken down and you need cash to fix it;
- Your cat or dog might become ill or suffer injury and you need money;
- An appliance you cannot manage without breaks down;
- You have to have a plumber in to fix a leak and need to pay them.
These are just a few of the reasons loans for poor credit over the short term might come in very handy. Any of the above might require that you look for a loan between £100 and £500. In this case, you might wish to apply for a payday loan.
If you need upwards of £500 to £1,000, you might want to consider a short term loan. Need to borrow between £1,000 and up to £5,000? If so, a personal loan might be best suited.
If your credit rating is very poor, you might not be able eligible for all loans. One type you may be able to apply for is a guarantor loan. The guarantor is the least popular type of loan has someone has to stand as your guarantor in case you falter on the repayments. If this happens, your guarantor would take over the loan repayments.
Payday Loans and Short-Term Loans Are the Most Popular Loans For People With Poor Credit
While there are many types of loans out there the payday and short term loans are the most popular.
This is because the online application process is generally quick. Another benefit to payday and short-term loans is you can get your hands on cash quickly in case of emergencies.
Short-term loans are repaid quickly. With the payday loan, the loan is generally repaid in one to three months. The short term loan can be extended longer but it is still not spread out over many years.
The lenders we work with do not put too much emphasis on your credit rating, although by law they need to look into it. They will focus on your ability to pay back the loan through the income you have coming in. There are some criteria to be met to apply for a loan this way and this includes:
- You are at least age 18;
- You have a regular income coming in;
- You hold a UK bank account;
- You have a debit card;
- A direct debit can be created.
We can help to find loans for people with poor credit as we work with a range of lenders all offering a range of affordable loans with competitive rates. All you need to do is decide how much you want to borrow and how long you want to take the loan over. This means that from one application you can search with multiple lenders for loans for poor credit UK. Our lenders offer payday loans, short term loans, and personal loans. To find out how much you might be in a position to borrow apply with us today.