If you are looking for a bad credit loan in UK, then this post is just for you. No matter how low your score of credit rating may be, there are some lenders who can approve loans even with poor ratings.In certain ways, cash advance online is considered different from other financial products. And because of the instant approval and fast funding, these are considered popular among the borrowers.
But the only thing here to keep in mind is that not all lenders will offer their services to people whose scores are below 500 or 600.
However, if you are lucky enough to have an excellent score on your report card, then getting approval for any type of loan becomes quite easy. Read more about it after referring to this post!
What Are Bad Credit Loans?
Bad credit loans are based on the borrower’s payment history and ability to repay outstanding balances. They may also be approved by a few bad credit loans direct lenders UK for a borrower with a below-average rating or no rating at all.
Bad credit loans are usually unsecured in nature, where the borrower is responsible to repay the loan without getting any asset as collateral.
How To Get A Bad Credit Loan In The UK?
There are some ways which you can use to apply for a bad credit loan in UK. Among all the traditional methods, the internet is the most preferred way to seek bad credit loans. This is because it is quite easy to find information on any given lender online, and more importantly, this will give you an opportunity to compare rates of interest, charges and other terms offered by different lenders on offer without any cost.
You may also contact your local bank for personal bad credit loans if you do not know of any reputable sources of information on the internet. However, it would help if you had contacted them earlier with regard to your requirements before searching for their phone numbers by visiting their website or calling them up for personal loans bad credit.
What Are The Requirements for Getting A Bad Credit Loan
There are a number of requirements for getting a bad credit loan.
- You will need to make sure you can afford the monthly payments as this will be the main factor in determining whether or not you will qualify.
- You will also have to provide some form of evidence that would prove that you have been paying your bills on time, such as a utility bill.
- A good credit rating is another prerequisite but it’s more likely that if you’re looking for a bad credit loan, your rating is going to be poor.
- You will need to have had an account prior to defaulting on the loan.
- You can’t have been bankrupt or suffered from any type of financial judgment in the past 18 months.
Reasons Why You Need A Bad Credit Loan
A bad credit loan is great because you can get it even if your score is low or there’s no score at all. There are some lenders who approve loans with poor credit ratings, but not all of them will. The only thing to keep in mind here is that there are different requirements for getting a bad credit loan. You need to make sure you can afford repayment of the loan, provide evidence that you have been paying your bills on time, and have had accounts before defaulting on the loan.
The Process of Getting A Bad Credit Loan in UK
Getting bad credit loans in the UK is not an easy process at all. It includes a lot of bureaucratic procedures and paperwork.
Here are the steps you need to follow before applying for a bad credit loan:
- Make sure you can afford repayment of the loan.
- Provide evidence that you have been paying your bills on time.
- You can’t borrow more than three times of your monthly income.
- Have had accounts before defaulting on the loan.
- Have a good credit rating.
- Approved by lenders with bad credit ratings.
Types of Loans Available To People With Poor Credit Rating
Finding your way to a bad credit loan is not an easy feat. Depending on what you have in mind for the money, different types of loans are available.
Here are some examples of the most common types of loans that can help you:
- Personal loans:
Personal Loans are designed to help people with good credit scores but who need cash quickly. They can take from 12 months up to 40 years to pay back and have a variety of interest rates.
- Mortgage:
Mortgages can be a great option for personal loans in the UK if you plan on living in a house for many years and know that you want it as part of your long term financial future. Mortgages require high interest rates and a lot of paperwork.
- Secured Credit Cards:
Secured credit cards are a great way to rebuild your poor credit rating as they allow you to make small purchases and pay them back quickly. They also offer other benefits such as interest free days and warranty extensions, which can help you recover from defaulting on the loan faster.
- Peer-To-Peer Lending:
If you are looking for a loan with low interest rates, peer-to-peer lending is the way to go. These loans are made by people who want to make some extra money by helping others rebuild their credit rating.
Benefits of Having Poor or No Credit Score At All
There are many benefits associated with having a poor credit score. One of the best benefits of having a bad credit score or no credit score at all are that you can still get a loan. This is because there are different types of loans available to people such as personal loans and secured credit cards.
One of the disadvantages is having higher interest rates than those who do have good credit scores.
Conclusion
While it is hard to get a bad credit loan in the UK, there are methods for getting one. To be eligible you have to meet certain requirements and know what you’re looking for. You also need to understand your options so that you can choose the best option for yourself.
Through this article we want nothing more than give people just like you the chance at making their dreams come true by giving them information on how to get loan with bad credit score.
