There are many personal reasons exist which can hinder your financial growth whether it is extra money you need to pay bills or additional cash to cover the cost of buying a new vehicle but your application of loan being rejected because of bad credit history and this rejection is quite irritating. However, many direct lenders are ready to provide loans even if you have a poor credit score.
The process of getting a bad credit loan is quick and easy but it may happen the lender provides you with a small sum with higher APR and you have to repay within a week or a month. Providing loans to bad creditors means higher credit risk; suppose if a borrower with low credit score will not able to repay the loan it will more likely to consider as default.
Getting bad credit loans direct lender can help you in many possible ways like you can improve your credit score if you repay the amount on time. These are the small loans and easily available through online medium. In addition, you may not need any broker to approach the direct lenders because of their online presence.
Various Types of Loans to Apply With Bad Credit
There are many loans you can get even with adverse credit performance in the past. Let’s have look at few of them:
Unsecured Personal Loan: You can easily get a personal loan without any collateral but the interest rate may be higher as compared to secured loans.
Peer to Peer Loan: This is a bit different because in this case, you can borrow money from investors rather than any money lending companies. But poor credit can bring the higher interest rate.
Guarantor Loan: This one is far better than any other way because showing a guarantor who can pay in case you miss the payment can help you to get a loan with less interest rate.
You can select any of the above loans according to your convenience.
Is A Secured Loan Available For Bad Credit Holders?
The answer is yes, you can get secured loan with poor credit history and they will consider your home as security; risk factor is that you may lose your dream house if you fail to repay the loan. But you can borrow up to £ 1,00,000.
Can I Get A Bad Credit Loan Without Any Guarantor?
Yes, you can get loans for bad credit no guarantor but the only thing which may bother you is the higher interest rate. As you read earlier, loans with guarantors can bring down the APRs but don’t worry you can get the loan quickly and easily without showing any guarantor.
What Things You Should Consider Before Applying For Bad Credit Loan?
Always remember few points before applying for a loan with having a less-than-perfect credit history. As you know, it includes a few risk factors too.
Interest Rates: It is obvious for people with bad credit that they have to pay higher interest.
Loan Term: The longer you take to repay the more you have to pay. It is better to opt for a short duration.
Credit Score: It is good if you repay the loan on time but it can affect in a negative way if you fail to do so.
It’s Time to wrapping up…
No one would like to wait for a week or a month to get approval. By understanding customer’s problems, many new-age lending companies, who work with FinTech approach, believe in providing bad credit loans with flexible APRs and repayments irrespective of financial condition. They provide quick approvals and you will get the funds within minutes and use your money to solve your problems instantly.