When you're struggling with bad credit, and you need money, look no further than unsecured loans for bad credit. Everyone can fall behind with payments and find themselves in a precarious financial situation, and when you have less than stellar credit, getting accepted for a loan can be an uphill battle.
An unsecured loan for people with bad credit can be exactly what you need. To learn more about that, read all about how to get an unsecured loan to consolidate debt
What are bad credit loans?
In short, bad credit loans are a form of unsecured loan you have access to if you have bad credit. Unfortunately, most other loans rely pretty heavily on your credit score when deciding whether or not to accept your application, which is why you might have issues getting one.
Unless you have collateral for a secured loan, bad credit can drastically reduce your chances of getting a traditional loan, because you don't present enough stability or security for the lending company.
Bad credit loans solve this issue by granting people with bad credit the chance to receive a loan and help them out with their financial struggles. Sometimes this can be the only option you have to get a loan if your credit has suffered some massive hits lately.
How much can you get with bad credit loans?
Because we're talking about an unsecured loan and since your credit score is not in excellent condition, the amount you will be allowed to get will not be massive, unless you have good circumstances otherwise, such as high income. All loan amounts are decided on personal circumstances, so every outcome will be different, depending on what your financial status looks like. If you have bad credit and don't have much to show for it either, then don't have unreasonable expectations.
Every broker will have different terms, and some will even offer loans of £25000- £50000 over periods of 3 to 25 years. As always, it is advisable that you only get as much as you need, regardless of what the maximum they offer you is.
Who can get bad credit loans?
Like the name says, bad credit loans are made for people who have bad credit. It cannot be stated exactly who will get a loan and who won't, because the company will assess each individual situation separately and make a decision based on that.
What do you need to do to get bad credit loans?
It's fairly straightforward to get a bad credit loan. Typically, you just need to fill out an online application that is quick and easy to finalise, and you can even get the money on the same day, thanks to the lenders' instant decision service. You just have to give them your details, so they can assess your circumstances and see what kind of loan would be best suited to your situation.
Do you need other forms of security for bad credit loans?
Whether or not you need to present other forms of security in order to get your loan depends on the company and the kind of loan you are looking to get. Here are some types of loans for bad credit and their requirements.
Peer to peer loan
Peer to peer loans are loans you get from individuals, as opposed to companies. They can be accessed online, and they have high interest, because they are unsecured loans. Lenders decide whether or not they want to lend to you, but they have less stringent requirements than lending companies.
Most people can get a payday loan, even if you have bad credit. Your income provides the security the company needs, and you need to pay it back within a month, once you get your pay check.
Same day loan
Same day loans are unsecured loans you can get with bad credit. The amounts are not always massive, but the application process is super quick, and you get the money in your account on the same day.
A doorstep loan is one of the best solutions for individuals with bad credit, as it's a very convenient option for anyone. The entire process is carried out from your own home, so you don't have to worry about running around.
Student loans are known to be granted fairly easily, with no credit check or other major requirements. In addition, the repayment schedule and general terms are much more forgiving.
Guarantor loans are great if you need to borrow more money and don't have the credit, or the good financial status for it. You just need someone to co-sign the loan with you. This means that in case you will become unable to pay, they will become responsible for your loan.
Credit union loan
As defined by the Money Advice Service, a credit union is a non-profit co-operative that offers loans with low interest and accepts deposits. It is established by people with a common environment, interest or goal – for example, their workplace, their neighbourhood, etc. Lately, the market has witnessed an increase in the popularity of such co-operatives.
How do you repay bad credit loans?
There certainly are unsecured payday loans for people with bad credit, meaning you need to pay the amount when your next pay check arrives. However, most bad credit loans are unsecured loans over a longer repayment time, which means you repay the amount in monthly instalments over however long you agreed upon with the lender.
You must keep in mind that, because this is an unsecured loan, it will have very high interest, so you will end up paying a total amount that is significantly higher than the original amount you borrowed.
Who offers bad credit loans?
If you were wondering where to get an unsecured loan with bad credit, here are a few companies that offer them:
- Citrus Loan
- UK Credit
- Guarantor My Loan
- Buddy Loans
- Suco Guarantor Loans
- 1st Stop Personal Loans
In conclusion, bad credit loans are great options for people who need a loan, but do not have the credit history to support an application for a regular loan. So, if you're asking yourself " Can I get a loan with bad credit?" the answer is yes, but there are certain things you need to take into consideration before you decide on what kind of loan you want.