Your financial report is used by lenders in the UK when applying for a personal loan. Lenders use your credit score to determine your capability of paying the loan. If you have a bad credit score, you risk being denied a loan by lenders. Bad credit loans are offered if you are under risk.
Applicants with a credit score higher than 630 risks getting their loans declined. In the UK, such borrowers are considered as risky customers. Nowadays, lending institutions offer a bad credit loan, unsecured loans or a no credit loan regardless of your credit score. The tips listed below will help you acquire a bad credit loan in the UK. There are variety of loan being offered. Let’s see what they are:
Payday loans
Apart from the fact that payday loans are easily accessible; they are quite expensive. Emerging issues might lead you to apply for a no credit check loan. They have a short paying period and experts are against these kinds of loans.
Secured Personal Loans
Assets such as a car or a house can be used as collateral when applying for a loan. They increase your chances of acquiring a secured personal loan. The collateral will be used to offset the loan in case you delay in making payment. They offer low-interest rates.
Guarantors
Get a guarantor with a great credit score. This will boost your loan application and you will be granted better interest rates regardless of your poor credit score. In case of non-payment, the guarantor will pay for the loan to avoid getting a bad credit score. Limit yourself to a smaller loan or avoid taking one if you are not capable of making payments.
Get a Loan from Credit Union
To qualify for a loan, one has to be a member of the credit union. Your character and willingness to pay your loan is what counts the most. Credit unions are unique; they offer low-interest loans depending on your credit score. Low interest charged to borrowers with a bad score to enable them to improve their status.
Online Lenders
The availability of online loans has made it possible to apply for loan regardless of your credit score. This helps the borrower to prevent a crisis, which arises from sudden expenses.Online loans can also help you to improve your credit score.
