A bad credit rating, although not ideal, does not mean getting a loan is impossible. Here are some ways of getting a loan even with a bad credit rating.
If you have a bad credit rating, it can very hard to get a loan. This can be very frustrating, particularly if you need money quickly. Not only will you be rejected for credit more often, which can be embarrassing, you also will usually get a bad deal on things like phone contracts. Fortunately, there are many ways to get a safe and legal loan, even with bad credit loans exist. Although no legal company can guarantee to lend you money without any sort of check, a bad credit lender is the closest you can get to safe, guaranteed loans.
How can I get a guaranteed loan?
Any legal company working in the UK must perform a background check. Anyone offering a guaranteed loan with no check is working illegally and borrowing money from them is a bad idea. However, some groups specialise in lending money to people with bad credit. If you are borrowing money, make sure the lender is FCA (Financial Conduct Authority) approved. Another useful thing about a background check is that it means that the loan will be right for you.
What is a bad credit loan?
A bad credit loan is a loan designed for people with bad credit ratings. These can require a guarantor, someone to pay if you fall behind on your payment. Some will not, this is ideal for people who have no-one that they can rely on. However, having a guarantor will mean that the rates are better. Loans can either be secured or unsecured. Secured means that you put something against your loan, which will be taken by the company if you cannot keep up with the repayments. Again, this will reduce the cost of the loan, but also risk losing something valuable like your house. The downside is that bad credit loans are slightly more expensive than regular loans. The major upside is that you will almost certainly be accepted for one. There are other up sides. If you take the loan and pay it back on time, your credit rating will improve.
What is a personal Loan?
A personal loan is an unsecured loan, which means that you do not risk losing your home, even if you fall behind. They also allow you to borrow far more than with a credit card. Be careful however, as you may end up borrowing more than you need. They also allow you to choose the time period over which you must repay the loan. They also usually need you to pay back a fixed amount of money each month, which means you can plan your repayments much more effectively. You are also able to pay back as much as you want, up to £8000 without any extra charge, whenever you want. This means that you can save a lot of money in your repayment.
Personal loans also come with a cooling off period. This means that, if you change your mind within 14 of you receiving a copy of the agreement, or signing the contract, you can back out of the loan. This means that you have 30 days to give the money back, and you will only be charged interest for the 30 days that you had the money. Although personal loans have a high rate of interest, there are companies that specialise is making these loans. These companies are more familiar with risky investments and can usually afford to make these loans at a better price.
Although there is no such thing as a guaranteed loan, many places that offer personal loans have a very high loan rate. You can get guaranteed loans from direct lenders today if approved. They can provide much faster cash directly into the applicant’s bank account upon approval. They will almost certainly lend you the money, and allow you to set many of the terms of repayment. This means you can get money in a way that suits you. This also means that you can get the money you need, in a way that doesn’t risk losing your house.