If you are in dire need of money, it can be tempting to rush into taking out any loan blindly. If you have poor credit and have been turned down by lenders on the high street you might be tempted to look elsewhere for a loan. However, there are right and wrong ways of obtaining loans for bad credit no guarantor UK and the differences could mean facing a huge financial mess and paying back an affordable loan.
The Wrong Way to Obtain a Loan
First, let us talk about the wrong way to go about obtaining a loan for poor credit. These include:
- Doorstep loans;
- Loan sharks.
While it can be tempting to scour the internet and social media, asking if anyone knows anyone who offers loans to people with poor credit, this is very risky.
You might be tempted by doorstep loans. You borrow generally small sums and repay the loan by someone coming to your home each week to take a repayment. However, the interest rate is usually extremely high, so borrowing this way is costly.
While there are many legitimate doorstep lenders, you never really know who is coming to your home to collect the money and it could be intimidating if you fall behind on the repayments or find you cannot afford the loan.
In the worst-case scenario, the lender may not be authorised by the FCA and in this case, they are working as lenders illegally.
Someone might tell you about their “cousin so and so” who borrowed off Mr Loan Shark when they could not get a loan on the high street.
They might have borrowed money; however, you can be sure that they had to pay way over the odds for the loan, perhaps two or three times the amount originally borrowed.
Loan sharks prey on people with poor credit ratings who are finding it difficult to borrow money but often struggle to repay the large loan with huge interest rates added on. The Mirror recently highlighted this plight stating that 42% of people who had taken out loans from sharks go on to struggle, missing meals, mortgage repayments and not having the heating on to save money to meet the demands of the loan sharks. One loan shark, recently jailed, admitted that he charged 50% interest.
The Right Way to Obtain Loans for Bad Credit no Guarantor UK
Now let us look at a much better and more affordable way to obtain a loan if you have a poor credit rating and you do not want a guarantor loan. These are:
- Apply online yourself by searching;
- Allow us to search for your loan and match you with a lender.
You could search online for a loan yourself but this might take a lot of time, as you might have to make many applications before being accepted.
If you have to make many applications, they will be noted on your credit file and go against you. In the end, you might not even find a loan.
You have no idea if the lender will even consider people with poor credit ratings.
Allowing Us to Match You with a Loan
A much better way of applying for a loan online is with our help. We can do all the hard work on your behalf and take away some of the guesswork.
When you allow us to help you find a loan, you already know that the lenders will consider your circumstances. All lenders on the panel that we work with will consider verifiable income. Lenders will want to know how much money you are paid each month and check that you have a regular income. They will also factor in how much you pay out each month to decide if they think the loan is affordable.
We work alongside lenders offering numerous loan options and who can offer highly competitive rates of interest on loans. The online loan application is extremely simple and lenders will base their decision on verifiable income, not credit history.
The lenders we work with do understand that you might have earned a poor credit rating in the past. However, you might be in a very different position now; to what you were when you got a bad credit rating.
Lenders offer various types of loans including payday, short-term, secured and personal loans.
You can borrow between £100 and £5,000 repayable from one month to 36 months and get an instant decision.