unsecured loans with bad credit
A bad credit loan is an option to consider for would-be borrowers who are struggling to find credit from other sources.
If the decision is reviewed by a lender then may still turn your application down. Since not all lenders use the same credit reference agencies and because they may/will use different unsecured loans with bad credit scoring techniques while one lender may refuse your application another may accept it. But be cautious about applying too frequently as this act itself may affect your score!
To be eligible to apply for loans with less-than-perfect credit, you need to meet a few requirements. You must be at least 18 years of age and a resident of the United Kingdom, as well as have access to a bank account with direct deposit and a steady income. If you meet these criteria, you can apply online from the comfort and privacy of your own home.
The way people have managed their finances in the past could be a factor as to why they have bad credit today. For example, if someone has taken out a personal loan and then failed to stick to the terms of their credit agreement, this will show up negatively on their credit report. Credit card or loan repayments that are missing or were late may also lower credit ratings. If someone has spent a long period of time only ever paying back the minimum amount each month on their credit card, lenders may see this as a sign of bad money management and a struggle to pay back debts. Other factors that may impact a person’s credit rating include having CCJs, or having been declared bankrupt.
To be fair, one reason these loans carry such comically (or tragically) astronomical APRs is their short payback periods. If you’re paying $50 in interest and fees to borrow $300 over the course of 12 months, that’s an APR of about 29% – credit card-esque, but not appalling. Shorten the time frame to one month, however, and you’re looking at an APR of 300% and that’s loan shark territory.