What are Bad Credit Loans?

There are times when sudden and unexpected expenses come up. At such times, the need of extra cash can often be fulfilled with the help of a loan. However, if you have a bad credit history, it may become difficult for you to find a loan.

Fortunately for you, times have changed, and lenders are now more open to offering loans for bad credit than ever before. Unlike in the past, lenders do not base their decision of approving your loan solely on your credit history.

They also take into account your income, your regular outgoings and your overall repayment affordability. If you check the right boxes, you can expect to find bad credit loan in UK, although you may need to pay a higher than average rate of interest for the same.

Getting A Loan With Bad Credit

These are specific kinds of loans offered by creditors for those with a poor credit score due to a history of trouble managing money effectively, or even those who have never had credit before and don’t have a good score.

There is no magic number on your credit score which makes you qualify for a bad credit loan, but it just makes it much harder to borrow the cash you need if you don’t have access to specialist lenders like Loan Broker does. We help you apply for a loan for any reason you need it for and give you a range of choices as to which bad credit loan you’d like to move forward with.

How Do I Know If I Have Bad Credit?

There are many ways you can check to see if you have bad credit. You may have already been told by previous banks or lenders that because you failed to keep up with repayments or weren’t able to pay a loan, that your credit score has been negatively affected.

Another way to check is with an online loan comparison company that might wish to perform a free credit check before you apply for your loan. This can in fact cause your credit rating to drop when they perform the check, however many of these general checks do not have the same effect.

What Kind Of Loans Can I Get With Bad Credit?

Homeowner Loan – here you don’t need a guarantor to back your loan, you simply secure it against your property, and if you fail to make repayments the creditor can sell the property.

No Guarantor Loan – depending on the scale of your bad credit, you may not be required to provide a guarantor for the loan so you are not thinking about affecting anybody else.

Instalment Loan – if you can show that you are able to meet the monthly requirements for repayment with your bank statements or financial history, no guarantor is usually needed.

Self-employed Loan – when you work for yourself, if you show that you are capable of paying it back through income statements over time, they may not request a guarantor.

You must also know that a loan can never be guaranteed. There are many checks which you have to pass before you get the loan. However, some lenders are quite lenient than others, and if you can prove your income affordability, you can be eligible for their loan.

How Much Can I Borrow If I Have Bad Credit?

It’s clear that if you have bad credit, then you are less desirable to loan to from a creditor. Under normal circumstances with good credit, you might be allowed to borrow £25,000 over a period of 12-84 months, however, with bad credit the same lender might only offer £5,000 over a space of just 12-60 months.
This is because you appear less trustworthy to pay it back in full and on time, so the creditor adjusts their conditions to meet your credit history.

Other Loans

Car loans

An autoloan is essentially a personal loan, wherein the loan amount can be used to purchase a car. The carloan will enable you to pay the dealer or the seller of the car in full.

Read More »

Personal loan

A personal loan is a type of credit paid to a singular person for their own use, as opposed to a business loan. The loan is made directly from a lender to an individual’s bank

Read More »

Secured Loans

Sometimes it can be hard to obtain a loan when you have a poor credit history to contend with. Lenders may see you as unreliable and not want to provide you with that much-needed cash

Read More »

FAQs

If you have a very low credit score, it can be extremely hard getting the kind of loan you need. Some lenders will see your bad credit score and either refuse borrowing altogether or insist on a high APR that you simply can’t afford. Many people seek out loans because they are in desperate need, and we really don’t believe it’s right to turn someone away because they have a past history of bad credit.
You can definitely apply for loan even if you have bad credit. There are many kinds of loans you can get, both secured and unsecured, with a guarantor or without a guarantor, when you have bad credit. Here at Loan Broker, we don’t guarantee you will be accepted for a loan, but you can always apply to the lender of your choice.
Simply fill in your details on our online website application form, and we will get a range of offers to you quickly. You can then choose which bad credit loan offer is most appropriate for you.
If you take a bad credit loan and can pay it off in full and in a timely manner, without any delays or missed payments, it can help you enjoy an improved credit score. This will make it easier for you to borrow loans in the future, thereby contributing to the betterment of your overall finances. However, we do not advocate that you take a bad credit loan solely for this purpose.
At Loan Broker, we do not levy any upfront fee from our customers, irrespective of your circumstances. All our lenders are registered with the Financial Conduct Authority, so you can rest assured that any costs related to your loans will be communicated to you at the very onset.
At Loan Broker, we strive to ensure quick approval and a fast payout. If the lender approves your loan application, the amount will be disbursed by the lender to your bank account. The time taken for loan disbursal depends on the lender you have chosen and your bank.

Find a Bad Credit Loan – With Loan Broker

Loan Broker is an FCA registered credit broker that operates across the major cities of the UK. All the lenders associated with it are also authorised by the financial regulator. The mission is to promote responsible lending and hence, our lenders perform soft credit checks to offer initial quotes. Soft credit checks are safe as they do not leave any footprint on your credit report and doesn’t even harm your credit report.

We do not charge any upfront fees to our consumers. We offer an array of unsecured loans such as – debt consolidation loans, self-employed loans, to help borrowers get back on their financial track. As a credit broker, we help our borrowers to find the right lender by considering their requirements. With Loan Broker by your side, you can choose no obligation loans. We are loan brokers, committed to extending a true hand of help for borrowers seeking hassle-free, and affordable loans despite bad credit rating.

Borrow responsibly and repay timely.