If you are counting down the days until payday as the bills mount up, then consider one of the many quick loans for bad credit available. Often an unplanned expense can appear such as, car repairs or medical bills leaving you short of cash for the rest of the month. It is well known that financial stress can impact your life and health. There is no need to let the worry get you down as there are so many loans available for people with bad credit.
There are many companies’ available offering quick loans for bad credit customers as they understand that everybody can get into financial difficulty. Loan companies make it possible for you to free yourself from financial stress and the burdens of everyday life. Application is easy, with money available in your account very quickly, even with bad credit. Often funds can be in your bank account much faster than a traditional loan from a bank, so if the money is in urgent need a bad credit loan can be a great option.
It can be frustrating and disheartening to be refused a loan from the bank, however there are quick loans for bad credit available. Although credit ratings are checked it is still much more likely to be accepted with a less than perfect credit rating. It is not impossible to find a loan with adverse credit.
There may be a few requirements to meet such as age, location, access to a bank account and a steady reliable income. If you feel you meet these requirements then you are very likely to be eligible for quick loans with bad credit. Often there is nothing to post or fax just a few simple online forms. If you are worried that a loan may impact your credit score, as long as you pay the loan back it may actually improve your credit rating.
When looking at personal loans, many people first ask how much finance is available to them.
Personal loans are used for a variety of reasons including home improvement, buying a car or starting up a business.
The amount available will vary according to the circumstances of the individual. A number of factors are taken into account when an application is made for a loan. These include household income, whether the applicant is working and current financial commitments. Lenders will weigh up these factors before making a decision as to how much they are willing to lend. Credit scoring will be used by the lender to make a decision as to the amount offered. This will look at whether the applicant is on the electoral roll, how long they have lived in their property and their previous repayment history with other creditors.
Affordability will be a key aspect of the decision of the lender with regards to the amount of finance available. They will want to be assured that the applicant is not over-stretching themselves each month in order to meet all their outgoings. Responsible lending is paramount and personal loans will only be available to those who can show they can comfortably pay back the required payment each month.
Unsecured loans have a lower limit of finance available than a secured loan, but are often very flexible with regards to the terms of repayment. It is important to realise that with a secured loan, property could be at risk if repayment cannot be made.
Anyone applying for a loan must be over 18 and be aware of all the terms and conditions such as interest rates, administration fees and monthly repayment amounts before agreeing to any finance offered. Taking on a loan must be done responsibly and with all areas of affordability covered before signing on the dotted line.
Loans for people with bad credit records are usually offered on a short term basis in the UK. Often referred to as ‘payday loans’, they offer loans for periods up to one month on smaller sums up to around £500. To operate legally under the Consumer Credit Act in the UK, payday loan companies must be on the OFT Public Register. However, though required to publish their loan APR (annual percentage rate), the actual interest rate charged is unregulated.
Though payday loans for people with bad credit are usually considered a ‘last resort’ option, it may be worth first exploring the potentially cheaper options shown below:
• Credit Card – if the facility is available, and spending is repaid in full within a month, there are no charges. However, if money is taken as a cash advance, a charge will be applied.
• Credit Union – these are local organisations providing loans for people with bad credit, or other credit-scoring issues, who are unable to access credit via the usual channels. A credit union charges a loan APR of up to 26.8%, which compares favourably with many store cards. It is not usually necessary to hold a savings account with a credit union to qualify for a loan.
Clearly it would be reckless to apply for a payday loan without the means to repay in full. Subject to that important proviso, the following points should be considered when evaluating payday loans:
1. Establish the true cost – often a monthly charge of £25-£30 for each £100 of the loan. This is the total credit cost to use for comparison.
2. Check that each company is OFT registered (see above).
3. Borrowers must have a verifiable regular income and be over 18 years old with a bank account and debit card. Proof of identity will be required. Lenders may also require a satisfactory credit check.
4. Avoid ‘roll-over’ loans and seek debt-counselling if a payday loan cannot be repaid.
In 2011 newspapers reported that almost a third of people in the UK were unable to cope with an unexpected bill. In 2013 newspapers are reporting the same thing.
In the current economic climate it can sometimes seem like making ends meet is a challenge in itself, a challenge that is made harder if you have bad credit. For those needing loans for bad credit it can feel like being stuck between a rock and a hard place.
But it doesn’t have to be that way.
12-month personal loans for bad credit can take the shock out of the unexpected and can offer chances that seemed out of reach.
For many, bad credit prevents access to money that could provide a cushion to the blow of unexpected expenses; a bill (or two) income just can’t stretch to, a car’s MOT that was a little more than expected. Being able to access funds might give some relief when there are sudden changes in personal circumstances; redundancy, a new baby?
Sometimes a lump sum is all that’s needed to help someone achieve their full potential. It can make seemingly unobtainable opportunities an actual reality. Imagine having the means to finance the training and development needed to achieve life goals, perhaps fund the deposit on a business opportunity.
12 month personal loans for bad credit can mean quick, easy and fair access to funds.
Loans are for 12-months, so unlike being committed to repayments over a four or five year period there is a clear end in sight. It also gives the breathing space that is not necessarily an option with pay-day loans.
Because loans are ‘personal’, they are not linked to any assets. It also means that EVERYONE, including those with bad credit, has the same opportunity to access the funds that could make life just a little bit sweeter.
Many people assume that a bad credit rating will disqualify them from borrowing money. But a poor credit rating need not mean you are out of the market for a loan. It can be both more difficult and more expensive to borrow money with an adverse credit history, but there are still options available.
An ever-increasing number of people are suffering from the effects of poor credit ratings. Personal loan applications are often denied by high street banks and building societies because of an impaired credit history, regardless of an individual applicant’s current situation. However, many lenders now offer tailor-made loans for bad credit.
Whether your low credit rating is the result of an overdraft, CCJ (county court judgment), past loan defaults, overdue bills, or bankruptcy, you will be viewed as a greater risk to lenders. To cover possible defaults on the loan, you will be charged a higher rate of interest. Being self-employed or having no credit history can also be enough for some lenders to reject your loan application.
Fortunately, there is a selection of licensed lenders in the UK for whom impaired credit rating, self-employment or a lack of credit history does not mean automatic rejection. These lenders make assessments on an individual basis. For bad credit lenders, your current circumstances and ability to make repayments are as important as your credit history. You can compare the terms and conditions of different loans for bad credit to find the ones with the lowest interest rates. By following the terms strictly and making repayments on time, you can start to rebuild your credit rating.
No matter how compromised your credit history, there is a range of options available to you from a selection of licensed UK lenders. By considering these options carefully, choosing the most affordable solution, and strictly adhering to the terms, you can overcome your poor credit rating and look forward to a brighter future.
It seems that interest rates on loans have plummeted in the past six months, as the banks compete for customers. However, only those with absolutely perfect credit history can qualify for the lower rates.
There are hundreds of companies readily available to offer bad credit loans to those in need, however, at a price. However,they come with a higher risk of default, therefore,having a much higher annual percentage rate. Some companies that offer these type of loans have interest rates of between 11%-89% which is ludicrous! According to money.co.uk, one of the best bad credit loans companies is Nemo Personal Finance whose annual percentage rate starts from around 11%. This is for loans between £500-£5000 and in most cases require a guarantor.
The bad credit market has become less competitive in recent years due to the difference in rates between poor credit loan companies and mainstream banks. However, there are still some lenders who are reputable and offer these type of loans to those with CCJ’s, bad debt and previous bankruptcy. Therefore, contrary to what people believe to be true, lenders have their own individual criteria to assess and determine who they lend their money to. There is not an actual list in which people are blacklisted, however, there is a calculation of risk acquired and used in accordance with the information from your application form. This along with the contents of your credit file will determine whether you will successfully be accepted for a bad credit loan or not.
With the mainstream lenders turning down one in four of the UK population, bad credit loan companies are accepting more and more applications. It seems the likely outcome is that more people will be declined mainstream credit in the future, pushing them towards lending from specialist bad credit lenders who are vastly more expensive and more readily available than ever.