Is there really such a thing as quick loans bad credit? Surely if you have a bad credit rating, you are going to struggle to find any loan, let alone a quick one. However, just because your credit rating is less than perfect it does not naturally mean that you are going to be turned down by all lenders.
Having a bad credit rating does mean lenders are going to be choosier, but we work with a range of lenders willing to base loans on your income and not so much your credit rating. Therefore, it may be feasible to get your hands on cash fast even if you have a poor credit score.
Online Loan Application = Quick Loans
There is no specific loan with the name of a quick loan. How fast you might be able to get your hands on cash will depend on the loan process.
Once the only way to get a loan was to make an appointment at the bank and ask them if they could lend you money. This was a lengthy process and it could often take many days or weeks before you found out if you were eligible to borrow. This is definitely not the way to get a quick loan.
Today anyone wishing to borrow can do so from his or her own home online. The internet is a marvellous thing as within minutes you can do what it used to take days to do. In short, the online loan application = quick loans and money in the bank within hours, not days or weeks.
Online Personal Loans
An online personal loan can be applied for providing you are:
- Living in the UK;
- Are at least 18;
- Have a bank account;
- A Debit card;
- A regular income (from a job or from benefits);
- Can set up a direct debit.
We work with borrowers to match them up to lenders willing to offer affordable personal loans from £100 to £5,000. Depending on how much you want to borrow the loan repayments might be spread out anywhere from one month up to 36 months.
A personal loan application can be conducted online and you will know within minutes whether the application is successful. As we work with a range of lenders, there is more chance of our being able to match you up with a lender.
The personal loan we can help you to find does not have to be a guarantor loan, although our lenders do offer this type of loan.
With the guarantor loan, you would need to have someone willing to stand by you when you apply for the loan, to say they would take over the repayments if you cannot make them. This person needs to have a good credit rating and a regular income, just as you would have to have.
Understanding the APR on A Personal Loan
When applying for a personal loan one of the first things you need to consider is the APR. The APR (annual percentage rate) covers the amount of interest and any compulsory charges that come with the loan. Lenders will tell you the APR before you sign up for the loan.
Generally, the lower the APR the less you will have to pay back on the loan. For instance, a loan with 18% APR would be cheaper than one with an APR of 29.9%.
Our lenders will make it perfectly clear how much you will have to repay on the loan. This will include the amount borrowed and the interest rate over the length of your loan. Always check to make sure that the monthly repayments are affordable, as late or missed repayments will affect your credit rating and may incur fees.
Online Application Process for Quick Loans Bad Credit
We make the online application process as stress free and as simple as possible. In easy steps, you can apply for the loan and know if you have been accepted. There are many benefits to finding a bad credit loan with our help, including the following:
- It takes just minutes to fill in your details, such as your income and outgoings;
- We then try to match you with the range of lenders we work with;
- If we find a lender you can check the details of the loan or loans offered and decide if it is right for you;
- If the loan is right for you, you and the lender can finalise the loan;
- You check when the repayments have to be made and how much;
- Money is paid into your bank account within hours or days;
- You repay the loan back on schedule.
It really is as simple as that even with a poor credit rating. Lenders will check your credit file, as no lender in the UK can offer a loan without first checking it. However, there is a difference in the level of checks, soft and hard checks. A soft check means the lender does not dig deep into your credit rating, while the hard check means they will. If the lender thinks you are in a position to be able to repay the loan, they may accept your application.
Other options for taking out a loan fast with a bad credit rating include the guarantor loan, short-term loan and the payday loan.
Have Someone Stand As a Guarantor
Another option for a quick loan for those with bad credit is a guarantor loan. On the plus side, even those whose credit rating is very bad can apply for the guarantor loan. There is a downside and this is that you have to ask someone to be your guarantor.
Essentially this means that you apply for the loan based on your circumstances but your guarantor is willing to sign that in the event you are unable to repay the loan they will take over the loan. In other words, the guarantor is trusting that you will be able to repay the loan.
The guarantor should have a good credit rating and have a regular income coming in. By signing to be your guarantor, they are putting their credit rating on the line.
A guarantor loan needs the borrower and guarantor to have a secure relationship and trust but that relationship and trust can be ruined in the event you cannot repay the loan.
The Short Term Loan and Payday Loan
Both the short-term loan and payday loan are types of loan that have to be repaid back quickly.
The application for these types of loans is usually very fast as you are only borrowing a small amount of cash and repaying it back fast. This is generally just a few months after taking it out.
Short term loans might allow you to borrow up to £1,000 or more depending on the lender. These types of loans, especially the payday loan, have a higher rate of interest than the personal loan and interest is calculated daily instead of monthly. This reflects the fact that most payday loans are repaid in a couple of months.
The Main Difference between the Short Term and Payday Loan
Both of these types of loan are paid back quickly and lenders only offer a small sum of cash in comparison to the personal loan. However, there are differences that set them apart:
- With the payday loan, you cannot borrow as much as you might with the short term loan;
- With the payday loan, you repay the loan on the next payday or with some lenders spread it out over three months.
While the interest might seem to be unusually high with a payday loan, you have to keep in mind that you are only taking it over the short term, generally one to two months. The interest repayable is calculated per day, not over the year.
A payday loan might be suitable in any circumstances where you need to get your hands on a small amount of money quickly. This may be for:
- Emergency repairs around the house;
- Replacing or repairing essential household items;
- Paying a bill you forgot about;
- Getting out of an unauthorised overdraft, which comes with high fees.
We can help to match you up for a loan, even if your credit rating is poor, with our range of lenders. All of whom take your verifiable income into account more than your credit rating.
Our lenders offer a range of affordable loans suited to those with a poor credit rating. If you are looking for quick loans bad credit apply with us, the application is fast and if approved you could have money in the bank within hours or days.