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Choosing Online Loans for Bad Credit
3 Sep 2019

Two Ways of Choosing Online Loans for Bad Credit

You have a bad credit rating but need to get your hands on money fast. You are considering online loans for bad credit, but where do you start looking? Millions of people in the UK are faced with this scenario. It can leave you stressed and anxious, as what chance of finding approval for a loan do you have? Actually, it depends on whom you turn to for a loan and how you apply.

Applying for a Loan Online

Applying online for a loan greatly increases your chances of approval if you do it the right way.

There are two ways to apply online, the first is you can make a search yourself using a search engine, the second you can put your loan in our hands.

Let us look at the advantages and disadvantages of each.

DIY Loans

DIY loans mean that you have to search online yourself for a loan and the disadvantages to this include:

  • You may have to make several loan applications before finding approval;
  • The different loan applications will be noted on your credit file and can have a negative effect;
  • Making searches with several different lenders takes a great deal of time, perhaps time that you don’t have if you need money fast;
  • You might have to wait for the lender to get back in touch with you about the loan.

Advantages to searching for a loan yourself include:

  • You will not have to pay a fee to a broker.

Find Online Loans for Bad Credit with Our Help

You can choose to look for a loan with our help. We are not lenders; instead, we search with a panel of lenders on your behalf to find you a loan.

The disadvantages are:

  • You will pay a small fee for our services.

Advantages to allowing us to match you with a lender include:

  • We provide access to multiple lenders from just one loan application
  • We try to match you with a lender, you don’t have to search yourself;
  • The lenders we work with do take all circumstances into account, even a bad credit rating;
  • Lenders offer loans based on verifiable income, not just past credit history;
  • You get an instant decision;
  • You get access to a range of loans offering between £100 and £500;
  • If we match you with a lender you can check out the details of the loan before signing up to make sure it is right for you;
  • If approved you can sign for the loan and the funds are paid out quickly, often within hours.

Types of Bad Credit Loans with a Typical High Approval Rate

There are many types of loans out there but you can improve your chances of obtaining a loan with certain loans.

Lenders may not be willing to offer you a personal loan offering many thousands of pounds if you have a bad credit rating. However, your chances do improve if you apply with lenders who consider verifiable income, not just credit past.

Two types of loans are popular with people with poor credit ratings and these are payday and short-term loans.

What Does the Payday Loan Offer?

If you only need to borrow a small amount of money because something unexpected cropped up you might consider payday online loans for bad credit.

Payday loans can only work as intended if you know you can repay the loan on the agreed date or dates. These loans should not be relied upon from month to month nor should they be rolled over continually. They are better considered as one-off emergency loans. The loans have been called an expensive way to borrow. However, this is only if you continually roll the loan over and incur fees and additional interest.

Lenders will generally offer between £100 and £500 and allow you to repay the loan on your next payday or spread the cost over three paydays.

While spreading the repayments over three paydays helps to make the loan more affordable each month, in the end, it does cost you more in total. This is because interest is calculated on a daily basis. Therefore, the quicker you repay the payday loan the more affordable it is.

What Does A Short-term Loan Offer?

A short-term loan might be a more suitable choice of loan if you need to borrow upwards of £500 and no more than £1,000.

Lenders class up to this amount of money as being a small loan. As you are only borrowing a small sum, lenders are more willing to take a risk on people who have a less than perfect credit rating.

The lenders we work alongside offer some of the most competitive rates of interest for your circumstances along with loan options.

Lenders on the high street will scrutinise your credit history before determining whether to offer you a loan. Many fail to take into account that you might now be in a better financial situation than you were when you got a bad credit rating. You may now have a regular monthly income but something unexpected has cropped up and you do not have the money at hand.

You could borrow and repay the loan for up to 12 months with a short-term loan, giving you ample time to repay the loan in an affordable monthly sum.

Apply For Your Loan Today

Applying for your loan with our help is easy. Just give us the following information:

  • Your income and outgoings;
  • Your age, you need to be at least 18;
  • Your address in the UK
  • Your bank account number and sort code;
  • Your debit card number.

Lenders need this information as if approved the money will be paid into the bank account and the lender takes the repayments back using your debit card.

With bigger loans spread out over many months, lenders will want to set up a direct debit with your bank so make sure the bank account accepts direct debits.

We will then search with our panel of lenders to match you up and give you an instant decision.

It takes just minutes to find out if you can borrow and if approved funds from online loans for bad credit may be paid into the bank account on the same day.

Here are some other interesting articles from out website:
Online Loans For Bad Credit – Are They An Option For Me
How to Get Bad Credit Loans Online Instant Decision?
It Is Possible To Obtain Bad Credit Loans in the UK