So, you've found yourself in a situation when you're in need of money, but most lenders and banks have turned you down. Why is that? Because your credit history is looking a little sad. Unfortunately, your credit score plays a very big part in your approval for most loans, and that can be an extremely limiting factor for a lot of borrowers.
But that doesn't mean you can't borrow money. Bad credit loans are exactly what you need, because they open up options for borrowers who are stuck in a less than ideal credit situation. Let's take a look at how you can get a bad credit loan!
What Are Bad Credit Loans?
Let's talk about what bad credit loans really are - unsecured loans that you can get even if your credit score is not the best. Normally, a bad credit history affects your borrowing ability and means that you might be limited in terms of options. But with bad credit loans, that isn't a problem, because you are much more likely to be approved for a loan, just like you would be normally.
Compared to traditional borrowing options, where your credit score factors in heavily, a loan for bad credit is especially designed for borrowers who are struggling with this aspect of their financial life, so you will have a much easier time getting and paying back your loan.
Who Can Get Them?
One of the best parts about loans for poor credit is the wider range of borrowers who can apply and be approved for this type of lending, even if their situation is not ideal. But while you are likely to get a bad credit loan easier than you would get a traditional one, there are still some criteria that you need to meet in order to be eligible. Luckily, the requirements are very basic and most borrowers will have no trouble at all qualifying!
- First of all, you need to be of legal age to be able to borrow money, so over 18 years old.
- Then, you have to live in the UK in order to qualify for this kind of loan.
- And it also makes sense that you would need a UK debit card and attached bank account.
How Can You Use Them?
The thing with loans with a bad credit history is that no one can dictate what you use them for. So, a loan can be used for whatever you need it for! Of course, it will depend on how much money you need, and what the repayment terms are going to be like. Because this type of loan doesn't rely on your credit score, and there is no collateral to secure the loan, the lender must get their security through alternative means, which in this case is a higher interest rate.
Another possibility to point out is that a bad credit loan may even be helpful in improving your credit score. You see, when you are able to pay back a loan on time, with no issues, that demonstrates financial responsibility and an ability to repay, so your score goes up.
How Does The Process Work?
The application, approval, and borrowing process is fairly easy, and very similar to most other loans. The first thing you need to do is apply, which only requires you to fill in a form with some basic information. Once this application has been reviewed (it's usually instant), then you will be approved for your loan.
As soon as you send in your necessary documentation and it gets reviewed, your money should be delivered into your account shortly! As you can see, the process is quick, easy, and painless for anyone who desires a loan, but doesn't have the necessary score.
As you can see, bad credit loans are not only great options for people who are struggling with a poor credit history, but they are also very easy to get! There is no reason why you shouldn't be able to get a loan with bad credit, as long as you meet the basic requirements necessary to get the money. That way, you can benefit from a loan, just like everyone else can, and you may even be able to increase your credit score by using this bad credit loan!