If you have a very bad credit rating and want a loan your options are going to be somewhat limited. One of the easiest types of loans to find approval for if you want to borrow a larger sum of money, perhaps up to £15,000, is a guarantor loan. This type of loan is not going to be suitable for everyone as we understand why you are reluctant to apply for it. Thankfully, there are other alternatives for very bad credit loans no guarantor and we can help to match you with a lender.
Smaller Loans Are Easier to Get Approval For
Lenders are going to be very reluctant to hand out many thousands of pounds to people with very bad credit ratings. This means your chances of finding approval for a personal loan and borrowing up to £15,000 spread out over 36 months, is going to be extremely difficult. On saying this, it is not impossible and your best chance of finding approval may be with us as we work alongside a panel of lenders who take all circumstances into consideration.
The lenders that we work alongside offer numerous loan options, including very bad credit loans no guarantor, and two types of loans that are most common among people with poor credit ratings are the payday and short-term loans. Both of these are considered very bad credit loans no guarantor and we can help to match you with a lender willing to offer credit to people with poor to bad credit ratings.
Eligibility for Loans
In order to be able to apply for any loan you do have to meet certain eligibility requirements. These include:
- You have to be at least 18 years old;
- You need to have a regular income;
- Have a bank account in your name;
- Have a debit card attached to the bank account.
Benefits of Payday Loans
A payday loan is considered an emergency loan as people usually apply for it when their payday is some time away and they have come up against a financial outlay they had not bargained for.
The loan may allow you to borrow between £100 and £500 to pay off an unexpected bill or repair or to meet any other need. You can repay the loan on your next payday or spread out the cost for up to three paydays.
Payday loans are often advertised with what seems to be an extremely high rate of interest in many thousands of percent. What is important to note is that the loan is not being taken out over the year. You will be taking it out for a maximum of three months. You would only pay the amount of APR shown if you were to spread the loan out for over 12 months.
Benefits of Short Term Very Bad Credit Loans No Guarantor
Short-term loans allow you to spread the cost of borrowing for up to 12 months. Lenders typically offer between £500 and £1,000 with the short-term loan. This type of loan can be taken out for any reason.
When considering short-term loans check the APR as this is going to be the amount of interest you pay over the year. The loan is going to work out cheaper if you reduce the term of the loan, while the monthly repayments may be more affordable the longer you take the loan over.
Search for A Loan with Multiple Lenders
If you allow us to help you find a loan, we can search for suitable very bad credit loans no guarantor with multiple lenders and you only have to make one single application. Just give us your details and tell us how much you want to borrow and how long for and we will search with the huge range of UK lenders on our panel. You get an instant decision and access to some of the most competitive rates on the internet.
While we do work alongside a panel of lenders who take all circumstances into consideration there may be times when due to an extremely bad credit rating none of them can help. If this is the case, you might want to consider boosting your chances of obtaining a loan before applying again.
Understand Your Credit Score
Your credit score or credit rating is what lenders take a look at when you apply for a loan.
This is a number consisting of three digits and the higher the score the better the chance of obtaining a loan for bad credit without needing a guarantor.
The score is based on the credit report that lenders look at and this tells them how you have dealt with credit in the past. For instance, whether you were late with repayments, still have outstanding credit and the amount you owe, how many loans or credit cards you have and whether you have CCJs against you.
If your score is relatively high, you are seen to be low risk. However, a low credit score means you are seen as a big risk and this is when lenders may be wary. This is not to say that you cannot get a loan, just that you will have more trouble finding one with a low rate of interest. Low rates of interest are only reserved for those with a good credit rating.
If your score is too low and you are having issues obtaining credit, you can take steps to help improve your rating before applying for very bad credit loans no guarantor needed.
Check to Make Sure There Are No Errors
One of the first steps you can take is to make sure that there are no errors on your credit report.
You can check your own credit score free and find out what lenders see when they look at your file.
You may have errors on your credit file that have been left over by mistake. You might have had a loan or credit card you owed but have now paid off but the lender has not cleared it from your credit file. In this instance, you can contact the lender and get them to remove it. This is one of the easiest ways to help improve your credit rating.
Other Ways to Improve Your Credit Rating
To help improve a bad credit rating you can consider the following:
- Always pay bills on time – this applies to utility bills, credit card, phone bills;
- Don’t apply for too much credit – if you continue applying and are turned down for credit it can have a negative effect on your credit score;
- Do not close off credit accounts that you have paid off and are unused – this is because closing them could increase the credit utilization ratio.
How Long Does It Take to Repair A Credit Rating?
Of course, repairing a credit rating can take some time. It all comes down to what is on the credit report that is giving you a low score.
If there are errors and inaccuracies on your credit file it may be easier to start rebuilding your credit report than if you have CCJs.
Start Off Small
Once you have done everything possible that you can to help rebuild your credit rating you should give it some time before applying for a loan for bad credit again.
When applying for a loan with our help you might want to start small. You are more likely to be approved for a small loan, such as a payday loan than you are for a loan for a larger sum of money.
Lenders will look into your credit rating as they all do in the UK, however, you will be seen as less of a risk if you only ask to borrow a small sum and can repay it back within a couple of months.
As we have mentioned before making numerous applications for loans can result in them being noted on your credit file. This is one benefit to applying for a loan with our help as we can search with multiple lenders and you only make a single loan application.
This means you do not have to make several applications as you would if you were looking for the loan on your own.
Finding very bad credit loans no guarantor needed is never going to be the easiest of tasks. However, you can improve your chances of finding approval by taking a look at your credit score first and if need be ask for amendments made to it. Once you have done all you can, you might want to apply for a small loan with our help. We can try to bridge the gap between you and the lender.