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Loans for Bad Credit History
6 Sep 2019

What Are the Choices for Loans for Bad Credit History

Having a poor credit rating and bad credit history can be a nightmare if you are faced with an unexpected financial outlay and need to get hold of money fast. This may bring about the question of what your choices are for loans for bad credit history. Well, we are here to help you and provide the answer, so check out the information below.

No Specific Bad Credit Loans

The first thing we want to point out is that there are no specific bad credit loans. Loans that people with a poor credit history can apply for are the same loans someone with a good history might apply for. On saying this, there are certain types of loans that people with poor credit histories might be more likely to be approved for than others.

Loans that people with poor credit ratings may stand a better chance of finding approval for include:

  • Payday;
  • Short-term;
  • Guarantor;
  • Secured.

The first two on the list above are loans for bad credit history offering smaller sums of money. These loans can come in handy if you are suddenly met with a financial outlay that was not accounted for and which you do not have the money to pay.

Situations may include:

  • Finding yourself in an unauthorised overdraft with fees added on daily;
  • A large final demand drops through the letterbox and it needs paying before your next payday;
  • Your fridge or cooker breaks down and you need to get it repaired or replaced;
  • Your vehicle needs its MOT and you forgot to budget for it and payday is some time away;
  • Your car breaks down and you need money to get it repaired.

In any of the above scenarios, you could apply for a payday or short-term loan and if approved the chances are the money is paid into your bank account on the same day.

How Much Can I Borrow with Loans for Bad Credit History?

How much you might be able to borrow with a payday or short-term loan will depend on several things. The lender will check your credit history, but if you only ask to borrow a small sum, they may not focus on it too much.

Affordability is something lenders that we work alongside do focus on. The loan has to be affordable to you and they will want to verify you have a regular income. They will also want to check you have enough disposable income after paying your bills and living expenses each month.

With a payday loan, you might be able to borrow in the region of £100 to £500. You have the choice of paying the payday loan in full the next time you are paid or paying it over three different paydays. Of course, interest will be added daily onto the loan.

With a short-term loan, lenders might offer you up to £1,000 and allow you to make repayments for up to 12 months. Again, this is going to be dependent on your credit history and affordability.

Guarantor and secured loans do need a great deal of thought, as there are advantages and disadvantages.

With a guarantor loan, someone has to stand as your guarantor and be willing to take over the repayments of the loan if you fail to maintain them.

A secured loan doesn’t require a guarantor but you do have to put something of value up against the amount of money you want to borrow and this is usually your home. You stand to lose your home if you cannot maintain the loan repayments.

Applying for Your Loan

To save time and stress you can allow us to help you find a loan. We do not lend money; we work alongside a large panel of lenders to try to match you with the perfect lender for your needs.

Lenders we work alongside offer competitive rates, affordable loans and instant decisions on different types of loans for bad credit history. They will consider verifiable income along with your credit rating and payouts are fast.

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