A bad credit loan is a funding option borrowed by you despite your blemished credit rating. These loans are for short term to tide you over until your finances are on track.
Life can throw you in at the deep end while your finances are tight. You are likely to come up several emergencies when you cannot afford to be running out of money. Thanks to direct lenders who will provide you with the deal based on your financial circumstances.
In times gone by, borrowing money used to involve too much hassle from filling out a lengthy application form to emphasis on an excellent credit score. A borrower with a bad credit history had never been on the customers list of traditional lenders. Well, as time passed by, the lending industry continued to evolve and still making efforts to make the loan accessibility easier.
Bad credit loans aim to assist people financially who are turned down by banks because of poor credit rating. You borrow a certain amount of money that you repay on the scheduled date along with the interest. Each lender charges different interest rates, therefore make sure that you do online research before grabbing any offer.
As a responsible direct lender, British Lenders provides these loans at competitive interest rates. We will provide you with a personalised loan offer that suits your budget.
Since its inception, British Lenders has been providing the best deals to people with less-than-stellar credit score. Our aim is to help you tide over, not to earn profits. Therefore, we take into account your repayment capacity. Following the best lending practices, we run soft credit checks without damaging your credit rating and examine your INCOME STATEMENT into the bargain.
A soft credit search involves soft inquiries that other lenders cannot see and hence your credit score does not go down. Multiple hard credit checks, on the contrary, can have a negative impact on your credit file. It means you can be turned down for a bad credit loan in the UK due to multiple applications.
Applying for these loans is a clear indication that you have a low credit score. At the same time, we have to ensure that you are not borrowing more than your affordability. We peruse your bank statement to know about your repayment potential.
Features of our bad credit loans at a glance:
Anyone can apply for a bad credit loan. However, not all lenders will approve your loan application because people with worst credit history are likely to default on the loan. British Lenders approves your application after considering your repayment capacity to ensure that you do not borrow beyond your affordability.
Getting the loan is not difficult since the lending industry has introduced the online application procedure. Now you can receive instant decision on these loans at the comfort of your home. All you need is the internet.
Follow these FOUR steps and your application process is over:
To apply for a poor credit loan, you need to meet the following eligibility criteria:
The repayment period will not be more than 36 months. Depending on the size of a loan, it may vary from borrower to borrower. Our main purpose is to provide assistance to each and everyone, and that is the reason why we always frame our loan deals according to the personal circumstances.
We intend to make accessibility of bad credit short-term loans as easy as possible. Therefore, no collateral is required to secure funds. In fact, these loans require no guarantor. To get our approval, you must have a good source of income. As long as you have capability to pay off the loan, we do not ask for unnecessary formalities.
Having understood that borrowers’ financial condition differs, British Lenders has introduced various types of loans for bad credit people customised as per your affordability. We follow transparent policy. Neither obscure nor ambiguous terms are used in our loan agreement. We encourage our borrowers to read them carefully and ask in case of any doubt.
To ensure that you get the best deal, we run a soft credit check and analyse your income statement. It helps us know your repayment potential. We decide the disbursal limit based on your affordability that varies from £1,000 to £10,000. Make sure that you disclose all sources of income to us to get a better deal. Not only interest rates but also APRs are completive. You can rest assured that our competitive APRs will not let you fall into debt.
Flexibility is an appealing option when you are looking forward to borrowing money with very poor credit ratings. During the application procedure, we will not ask you the purpose of using money. You are free to spend money in the way you want. However, it is not a good idea to apply for a loan when there is no specific purpose. Here are some ideal situations when these quick loans work best:
Car repair - Car expenses from fuel cost to regular maintenance quickly add up. Even if you manage to set aside to fund daily motor expenses, you may face cash shortfall when it breaks down. Replacement of any motor part can take a large chunk out of your savings. It is wise that you use little part of your savings along with the loan to fund the repair cost.
Home refurbishment - Maintenance is paramount if you want to add up value to your house. No matter how much effort you make it to keep it in good order, the call for repair work does not stop to grow. Thankfully, short-term poor credit loans can add value to your house when you are in a jam.
Buy replacements - From kitchen appliances to yard tools, you can buy everything with poor credit loans. Deplorable financial condition should not stop you from buying what is necessary.
Likewise, there are various situations when you may find instant bad credit loans as an amazing option.
A low credit history may restrict your options of getting the best deal. You should simply take steps to build your credit to get a loan at a lower interest rate down the road. Below are the causes for poor credit rating:
Before you apply for a loan, you should take a look at your credit report. Three major credit reference agencies - Experian, Equifax and TransUnion always have a record of your credit rating. You can get one free copy of your report once a year. Bear in mind that each company uses different criteria to estimate your credit score which is why the scores may vary.
The first step to improve your credit file is go through it periodically to make sure that it does not consist of any unidentified default and all information including your contact details are up-to-date and accurate.
Pay off your utility bills, mobile and internet expenses on time. If you are a first time borrower, you can get competitive deals by showing the record of payment of utility expenses.
Payment history, credit utilisation, credit age, types of credit, and number of inquiries are factors that contribute to a credit score. Focus on each of them to have an excellent credit rating.
There is no such thing like guaranteed approval. Each loan application must include a soft credit check that decides the chances of loan approval. If we suspect that your income statement is not strong, you can be denied. However, the best thing is it will not show up on your credit report. Since we use soft credit check and quick approval procedure, we can transfer funds to your account the same day, but there is no guarantee that you will get approval for the loan.
A: Bad credit loans can help you improve your credit score provided you have to repay the loan over an extended period. This scenario is mainly possible in case of instalment loans. If you continue to pay each instalment, it will help build your credit. You will also be able to apply for the loan at more competitive interest rates in future as a lender could clearly see your financial commitment.
A: Poor credit loans do not require a hard credit check. It means no hard inquiries will show up on your credit report and hence there is no risk of losing your credit score when you apply for the loan. British Lenders runs soft inquiries that do not show up on your report to estimate your repayment capacity.
A: Yes, you can get a loan with bad credit with guaranteed approval. The lender will not turn down your application as long as you have a repayment capacity. Make sure that you do not borrow more than your affordability.
A: Yes, you can get a loan for bad credit very fast. As you put in the loan application, we take a hardly a few minutes to shortlist it. Once approved, you will get funds directly in your account within a couple of hours.
A: Yes, you can get a loan with very poor credit, but interest rates will be very high. This usually happens when your credit report shows county court judgement (CCJ). Make sure that you have settled CCJ before taking out the loan.