Bad credit loans: would you believe loans for bad credit has so many options and alternatives?

Given the current financial situation of the UK in general, the number of people with extremely high credit ratings is far less than those with just OK or poor ratings. This has led to the number of bad credit loan products increasing dramatically, purposely designed as loans for bad credit. The criteria is very different to just a standard credit check. Lenders of bad credit loans are looking more at your current financial situation rather than your history. They are looking at how you conduct your finances now rather than a long time ago and will make judgement based on now, rather than the past.

Given the rise of bad credit loans there has been some good news. It’s meant that loan companies specialising in these loans have developed and now understand their customers and the financial situations they face far more clearly. This means that they are able to look at your application carefully and understand so much more from the information you provide. This means that they’ll be able to lend you money in situations that high street banks or typical lenders would not. It’s important to understand that not all applications will be successful and there isn’t a guaranteed loan but they are high acceptance and honesty will be looked at far more favourably.

What are the best loans for bad credit?

The best loans for bad credit are completely down to you and your application. Given there are so many different lenders who are all human with exception of some who use software to make decisions the information you provide can be construed in many different ways. This means that one loan company may not have the same negative feeling about your application when they look at it compared to another and for that reasons the best loans cannot be deciphered until after you have made your application. That’s why it’s important to get your application to as many lenders authorised by the Financial Conduct Authority as possible so that they can fairly assess your financial situation. This will mean that you are more likely to get a decision or offer that you are likely to be happy with. It will also allow you to gauge your true finances currently.

Can I get very bad credit loans?

When some asks us “Can I get very bad credit loans?”, it’s not my intention to be rude and answer a question with a question but given how ambiguous the question is we will always reply with “What do you consider to be very bad credit?”. Some people believe they have excellent credit histories when the likes of the CRA (Credit Reference Agencies) would strongly disagree. Many people with pretty average credit believe their rating is terrible. So for this reason, the only real way to know if you can get very bad credit loans is to apply. What some perceive as bad credit others may not. Lenders are also not taking an interest in your history so much as your current eligibility and how you are conducting yourself financially now. You can get very bad credit loans from direct lenders – it’s all down to how your application is perceived. Lenders must follow clear responsible lending policy set out by the Financial Conduct Authority. If they believe it’s possible to lend and will not create financial difficulty for you and the loan is affordable then you are likely to be considered for the loan.

Will you get small loans for people with bad credit?

Yes you can get loans for people with bad credit. The typical payday or short term loan is designed for people with a less than perfect credit history. The main thing to lookout for when you apply for money is that you are completely upfront about your financial situation. When a lender receives an application that is clearly honest it’s much easier. When applicants, to some degree understand their own financial situation, it makes coming to a decision far more straight forward. Small loans are designed for people with checkered histories. This means there’s every chance your application can be looked at and considered by our panel of lenders.

How can I compare loans?

Loans for those with poor credit scores often carry higher rates of interest and it is really important that you understand this in order that you can workout the best deal on bad credit finance for you. Please take a look at this loan comparison chart to see typical costs for borrowing money and it’s important to remember this is just an example and in no way indicative of the finance offer you will get from lenders.

Comparing loans for poor credit

Borrow money – how much?

Same Day Loan -length?

Monthly APR example Representative 1266%

Loan total

Monthly repayment

Is this a bad credit loan?

£100 loan

6 months 24% £198.64 £33.11 Yes

£200 loan

6 months 24% £397.29 £66.23 Yes

£500 loan

6 months 24% £993.22 £165.54 Yes

£1000 loan

6 months 24% £1986.44 £331.07 Yes

The most important thing to consider is that the interest is quite considerable. If you can afford it then pay the loan off more quickly, you can significantly lower the overall cost of the loan. Typically most lenders start repayments from 3 months which can be helpful if the higher repayments are affordable. If you’re unsure and you need more help it’s best to fill in an application. This way a direct lender correctly qualified can make the decisions for you.

What bad credit payday loans in the UK payout instantly?

The truth is bad credit payday loans in the UK that payout instantly will be difficult to find. Don’t misunderstand this. If your loan agreement is approved and you accept, the loan can be paid out instantly from here. But getting a loan agreement instantly is not possible because your lender will need to check your financial position carefully and this can take a while. If you get an instant payday loan offer, it’s generally because of auto decisioning software which means you passed a computers credit test. You will still need to review the offer and make sure you agree with it and sign accordingly. This means that you will still require a little while before you can actually get paid. The lender will release money and should your account accept faster payments then it can be instant from there.

Do direct lenders offer loans with bad credit and no guarantor?

Direct lenders do loans for bad credit mainly because there can be quite a lot of confusion as to what bad credit actually is. Given that we are not financial experts, the lenders are. They can understand finances better and judge whether or not you have a sensible enough financial situation to borrow money. If they believe your financial position is good enough then they may offer a loan with no guarantor. It’s important to understand that direct lenders who offer payday loans will have different ideas on your finances so applying to many will give you more chance of fully understanding your true position. If you submit an application with us we can generally get 50 lenders and direct lenders to look at your finances and see if they can help or if you will need to take a guarantor loan instead.

 

Do bad credit loans with no credit check exist?

No. The simple answer is no they do not. You must be credit checked and we’ve covered in great detail why loans with no credit check simply don’t exist. You must be credit checked if you have good or bad credit as this forms part of the agreements and understand lenders have with the FCA. They must lend responsibly so if you think you have bad credit then you can consider sending us an application so that the lenders can make a decision on your current financial situation.

What can I do if I feel I wasn’t treated fairly?

It is the responsibility of all authorised by the Financial Conduct Authority to ensure we fairly help consumers. If for whatever reason you genuinely believe you have been treated unfairly then you should contact the Financial Ombudsman. They have the power to help you if you make a complaint about unfair treatment. If you’ve never been through the process then this will show you how to complain about financial services. No one is perfect and we don’t get it right every time, we are human. This is what the governing bodies are in place for to ensure both consumer and business are fairly treated.

My payday loan debts are spiralling out of control: who will help me?

If you have taken out payday loans in the past and the debts are now mounting please seek free advice. One of the best places to start is with stepchange.org who have helped thousands of people with debt. They can give debt advice and have many tools and people to talk with should you need help. Do not let a problem continue to escalate. When you seek help and make a positive move to solve debt things will become much easier for you.

 

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