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How to get an unsecured loan with bad credit

If you have less than perfect credit, you might be interested in knowing whether you're eligible for a unsecured loan with bad credit But first, you need to know what are bad credit loans Is it possible for you to get a loan with bad credit? Yes, and this article is going to detail how and where you can get unsecured instant loans with bad credit.

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Can you get a loan with bad credit?

The short answer is that yes, you can get a loan with bad credit. While it is significantly more difficult for an individual with a bad credit history to be accepted for a regular loan, there are certainly options available on the market for the less fortunate people who do not have an impeccable credit history.

You won't be able to get the same kind of loan that someone who owns a house and has perfect credit can, but loan brokers and other lending companies have non-traditional lending solutions for people who do not have the best financial situation.

Who can get a loan with bad credit?

Anyone who has bad credit can apply for a loan with bad credit. There are loans specially designed for them, so everyone can have the chance to receive the help they need with their precarious financial situation.

Getting a loan depends on your circumstances and is decided by each lending company individually. So while we cannot predict exactly whether or not you can get a loan, we can say that most people will find an option for a loan for their particular situation.

What do you have to do to get a loan with bad credit?

Fortunately, you don't have to jump through hoops to get an unsecured loan for people with bad credit. The application process is quick, easy and straightforward: you typically apply online by filling out a form, which only takes a couple of minutes.

Then, most companies offer an instant decision on whether or not you are granted the loan, so you don't have to wait forever to find out. Finally, once the application process is finalised, you can get the money in your bank account on the same day, should everything go smoothly.

The application process involves zero paperwork most of the time, but there might be cases where you need to send in some documentation in order to be accepted.

How much can you get with a loan with bad credit?

The amount you can get with an unsecured loan with bad credit will not be extremely high because this is an unsecured loan, which means you do not need to put assets up for collateral. However, the amount you can get will vary depending on the lending company, as well as your financial situation. Generally speaking, loans are between £300 and as much as £50000, over periods starting with a few months and up to 5 years.

Do you have assets?

If you have significant assets, you may consider getting a secured loan, instead. A secured loan would enable you to get a larger amount of money for your needs. However, that means you would need to sign your asset up as collateral, which would effectively block it for the period of the loan. In addition, should you default on the loan, you are at risk of losing your asset.

Do you have an income?

Income over a certain level will help you counteract the fact that you have bad credit. It offers some security to the lending company and makes you less of a risk. The specific threshold is different for every lending company, so you will have to check what their requirements are before applying, in order to ensure good chances of having your loan application accepted.

Do you have a guarantor?

A good option for you might be a guarantor loan. A guarantor loan is a loan where someone else co-signs with you. That offers some security to the company in case you can't afford the repayment instalments, so the guarantor becomes responsible for repaying your loan. The advantage of this is that it might enable you to get a larger sum of money, but the drawback is that it can be quite difficult to find a willing guarantor.

All in all, it is clear that yes, individuals who have bad credit can absolutely get a loan! There are several options for unsecured loans with bad credit; it just depends on what you are looking for, what company you opt for, and what your financial circumstances are. Regardless of your credit score, there is a loan option suitable for you.

What do you need to keep in mind when pursuing a loan with bad credit
Make sure the company is authorised There are, unfortunately, numerous scammers on the market, as well as loan sharks waiting to take advantage of vulnerable citizens in need of loans. Make sure the company you want to lend from is authorised by checking the Financial Services Register (FSR).
Maintain realistic expectations Before you pursue a loan, assess your own financial circumstances and compare that to requirements from lending companies to get an accurate idea of how much you can borrow. Don't start with unrealistic expectations.
Take all of your options into consideration Even if you get rejected for a loan because of your bad credit score, that does not mean you can't get another loan. Take all of your options into consideration before making a decision. The right loan for you might be a student loan, a guarantor loan, a payday loan, a same day loan, a doorstep loan, a peer to peer loan, or any other type of unsecured loan currently available on the market.
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