Get The Money You Need
Apply to Borrow £1000 to £25,000*
Apply for fast and secure online loans today
- Apply For £ 50 – £ 1,000
- Fast Payout
- No Fees
- Secure Appilcation
- Available 24/7
- Bad Credit
REPRESENTATIVE 481.6% APR
If your credit score is not in good shape and you are in need of cash to consolidate debts or make a purchase, one of your best bets is personal loans. This type of loans offers an advance to almost anyone, even to those with fair credit. However, lenders will usually provide low-interest personal loans to borrowers with good credit remark, therefore, as someone with bad credit, you have to compare your options first.
Understanding Your Credit
Do you have good credit? Bad credit? Or fair credit? If you’re not sure, the best thing you can do is to check your credit report by getting a free copy of it from your credit agency. Doing so can you help learn about your exact credit standing, any existing accounts, or wrong data entered to your record. If you believe there are inaccuracies, write a letter to your credit agency about this and submit proofs that would back up your statement.
In case your credit score is in bad shape because of a financial mistake, let’s say a default or late payments, it can still be repaired; however, it will take time. For defaults, it will take at least six years to remove it.
How To Get A Loan With Fair Credit
Whether you have bad or fair credit, the first thing you should do is to fix whatever you can. If you have any unsettled accounts, settle it and boost your credit remark. This will help you obtain a low-interest loan.
Next is to shop around. There are many lenders in the marketplace but not everyone has the best loan offer. Compare as much loan providers as you can to know who provides the best interest, terms, and policies. Once you found the right lender, submit all the necessary requirements and be sure to read the fine print before you sign up the dotted line. If your loan application is approved, pay the loan on time to avoid decreasing your credit remark.
Having a bad credit history is challenging when getting a loan, and it’s the same when you have no credit history at all. Since the lender has no basis about your behavior when it comes to how you pay your accounts in the past, they are more likely to reject you. However, there are loan providers who are willing to accept your case but most of the times, it’s not a practical option.
For instance, you can get cash loans or payday loans. These loans won’t require a credit check and can give you the finance you need in as soon as one day. But the catch is the excessive interest rate. Sometimes, the interest is so high that most borrowers fail to repay the loan on time, causing a lower credit remark. Meanwhile, some may ask for an extension and although it’s possible, it means agreeing to pay for another set of charges, thus making the loan even more expensive.
Then there are personal loans or loans that can be acquired by almost anyone as long as they can prove a stable source of income. Most personal loan providers do not also conduct a credit check and even if they do, they only use it as part of their requirements and not to make a decision. It can be settled on an installment basis thus giving you a chance to pay for a small amount every month. However, the interest rate is also high.
Better Loan Options For Borrowers With No Credit
If you want to avoid the staggering interest rate, you have two options to choose from: secured loans and guarantor loans.
When you choose secured loans, you are pledging collateral against the loan, thus providing the lender some sort of security. You can score a low-interest secured loan even with no credit that you can also pay in small portions for a certain period of time. But be sure to avoid defaulting on your debt or else, you can lose your property.
Another option is the guarantor loans where you’ll ask another person to guarantee the loan. This means that when you seize on the loan repayments, that guarantor will pay the loan balance on your behalf. This loan can also give you a lower interest and better repayment terms.