Bad Credit Loans
If you’re in desperate need of some cash, but negative records have stained your credit, it could be tough seeing yourself through this financial disaster. You may find yourself having to shop from lender to lender only to find yourself getting rejected each time. Luckily, you are not the only one who struggles from this financial difficulty, and with the increasing number of people with damaged credit looking for a means to borrow money, bad credit loans have been introduced in the market.
As the term suggests, bad credit loans are designed to help you out of immediate financial danger when all other lenders have denied you financial assistance. You are considered as a bad credit borrower when you pose a high risk to the lender, when your capacity to repay the loan is considered questionable.
When are you considered as a high risk borrower?
1. You have little to no credit history. Whether you have limited credit history or it’s your first time taking out credit, your application will generally be viewed as high risk. This is because there is little or nothing in your credit file for the lenders to check into. This will give them difficulty predicting what kind of borrower you will likely become, and thus will be hesitant in awarding you the loan.
Can I apply if I don’t have a debit card?
Unfortunately, you need a valid UK debit card to qualify for a loan because this is we ensure we can collect payments from you.
2. You missed payments in the past. If you were always late in your bills payments in the past, this will cause a significant drop in your credit score, which can highly affect your ability to borrow money. Furthermore, if you’ve had negative records in your credit report such as foreclosures, repossessions, or bankruptcy, borrowing can be extremely difficult, if not impossible.
In these circumstances, bad credit loans can be extremely helpful to get you through this financial emergency. Bad credit loans generally have no credit checks, so you won’t have to worry about being rejected even if your credit history says all the negative things about you. Another benefit with a bad credit loan is that applications are mostly done online, so approval is fast and easy. Your money will typically be available within a few hours, which is perfect for urgent needs. Additionally, a bad credit loan may help boost your credit rating as well, if you prove responsible and timely in your repayments. Example of bad credit loans are logbook loans and payday loans, which are two of the most popular in the UK.
Unfortunately, bad credit loans can be quite expensive than standard loans. This is to give allowance for the risk that lenders are bound to take in accepting someone with bad credit. Bad credit loans may be secured or unsecured against a collateral.
Although we don’t actually consider our loan service as a bad credit loan, we can actually be a better and much cheaper alternative. In fact, we perform credit checks just as a reputable lender would do, but we may be able to accommodate and provide considerations for individuals with damaged credit as well. We know the difficulties borrowers with bad credit have to undergo, and we aim to be accessible for anyone who’s exhausted all their borrowing options. Despite this, however, our rates are still cheaper than typical bad credit loans, because unlike others, we don’t take advantage of the difficult situation you are already in.