Small Loans For Bad Credit
There are many different types of loans on the market and finding one is not an easy task even if you have a great credit rating. If your credit rating is poor, this task can seem impossible. There are many different types of small loans for bad credit and here we explain some of the most popular choices.
One-Size Does Not Fit All
We believe that there is no such thing as a one-size fits all loans. Just as people and their circumstances differ, so should the loan and the criteria for getting that loan. Just because you have a bad credit rating, it does not mean that lenders should avoid you like the plague. We work with lenders and can help you find the most suitable loan for your needs, based on your circumstances. Due to this, you are far more likely to hear a “yes” than a “no” from lenders.
Some of the most popular types of small loans if you have a bad credit rating include:
- Small personal loans
- Secured loans
- Payday loans
Personal Small Loans for Bad Credit – Secured or Unsecured
A small personal loan may be a good choice for those with bad credit. Loans are generally either secured or unsecured. If you have bad credit, it is more likely you will be approved for a secured loan than an unsecured.
The secured loan means you put something as collateral up against the loan. Generally, this is such as your property. However, if you only want to borrow a small amount of money, this may not be the most suitable option.
On the plus side, if you are approved for a small personal loan that is secured, it will at least get you on the ladder again and you can start rebuilding your credit score, providing you repay the loan as set out.
Payday Loans Are Quick Loans and Easy to Apply For
A payday loan is as the name suggests allows you to borrow a small amount of cash and the loan is typically repaid within one or two paydays. This can be an excellent way to be approved for a loan if your credit score is not so good. Payday loans are typically one of the easiest loans to apply for. They can generally be applied for online with no paperwork and you know within hours if you have been accepted or not. We work with lenders who specialise in offering small loans for those who have a poor credit rating or no credit rating. We can help you to secure the most suitable loan for your needs.
Reasons Why You Might Need a Small Loan
There may be times when your money does not stretch as far as you might like it too. There are also times when something unexpected pops up and you do not have the funds immediately to pay for it. This is where a small loan comes in very handy. Despite a poor credit rating, it may still be possible to get approval for a small loan. Popular reasons for wanting a small loan include:
- An unexpected bill;
- You forgot a birthday and have to purchase a gift before you get paid again;
- Your vehicle needs repairs unexpectedly;
- You want to take advantage of a good bargain at a knockdown price;
- Your child needs funds to pay for that school trip and you forgot to budget for it.
The above are all reasons where small loans for bad credit might come in handy. How much you might be able to borrow will depend on several factors and these can differ between lenders. We work with lenders who offer loans big or small to people who have a poor credit rating and can help to match you with the most suitable type of small loan for your needs.
Eligibility for Small Loans for Bad Credit
When making an application for small loans for bad credit there are a few details we will want to know. To begin with, we need to know that you are eligible for a loan from one of the providers we work with. Therefore, you will need to:
- Have a reliable monthly income coming in. This does not have to be from work, it can be from any benefits you get each month;
- Be at least 18 years of age;
- Have a bank account in the United Kingdom with a debit card attached to it;
- Be in a position to set up a direct debit to repay the loan.
How Much Disposable Income Do You Have?
Along with the above, the lenders will ask if you are in a position to repay the loan. Ethical lenders will not offer you a loan that is not going to be affordable. Thankfully, the lenders we work with make sure that you are in a position to repay the loan and you are not going to leave yourself without money.
To work this out they generally take into account how much you have coming in each month and how much you pay out. The amount left is what is called monthly disposable income. The loan repayments would be taken from this money.
The Centre for Economics & Business Research (CEBR) undertook research, which suggested that by 2021 the average household in the UK could save as much as £6, 170 per year. This was based on the amount of disposable income left over each month.
This may not be accurate however, as the Money Charity also undertook research, which revealed that 10 million UK households do not have any savings and over 3 million have less than £1,500.
However, even if you don’t have any savings, providing the lender thinks you can afford the repayments on the loan out of your disposable income, you may be offered a loan.
The Benefits of Applying for Small Loans for Bad Credit with Our Help
Whether you want to apply for a small personal loan, a secured loan, guarantor loan or a payday loan, there are benefits to applying for your loan with our help rather than searching online on your own.
One Single Loan Application Search with Many Lenders
One of the biggest benefits is that you can make one single loan application directly from our homepage to search with the numerous lenders we work with. We do not offer loans directly. Instead, we work with lenders offering highly competitive rates for loans, including to those who have a less than perfect credit score.
You might wish to think of us as being the gateway to numerous loan options, giving you more chance of finding a lender willing to offer a loan for people with poor credit. While you could make your own search using a search engine, there are so many lenders out there offering false promises of guaranteed loans for bad credit you may end up going round in circles. If you need to access money fast this is not good. This brings us to the next benefit. Money paid quickly into the bank.
Fast Application, Money Paid Quickly
We mentioned briefly above that the payday loan is fast to apply for and money is paid into the bank quickly. However, this is not just applicable to the payday loan.
You can apply for any loan online with our help by using sliders to tell us how much you want to borrow, and how long you want the loan over. From this information, we do all the work of matching you with a lender, without the need for paperwork.
Gone are the days when applying for small loans for bad credit was a nightmare and you were turned down repeatedly after countless hours of searching. Not only is being turned down disappointing, but it also does not get you the money you need and the credit applications can go against you on your credit file. You can apply with our help with just one single application and search with many lenders.