You have maxed out your credit card bills, your email thread is swarming with payment reminders, and your bank account is in the red. You are not likely to get a loan as defaults have already taken a toll on your score and credit worthiness. When traditional lenders slam the doors in your face, online lenders turn up to give you a helping hand.
A bad credit loan is a debt that you take out when your credit history is less-than-perfect. A poor score allows of high default risk and hence, traditional lenders decline your request. Finance Ever have understood that financial irresponsibility is not the only reason that account for multiple defaults.
Here is the credit rating by Experian:
How Bad Credit Loans Can Help You
A poor credit history may hold you back from taking out a loan at attractive interest rates. You will also be denied access deals that are generally available for good credit borrowers. It will be hard to take out a short-term loan even if you explain your genuine credit needs to your lender.
These loans have been designed specifically for borrowers who have been facing difficulty in keeping up an acceptable score. If you have fallen behind repayments due to any reason, these bad credit loans are an alternative to finance your emergency needs.
You can apply these loans for following reasons:
- To pay medical bills
- For car repair
- To settle credit card dues
- For buying a laptop
- To clear outstanding utility expenses
- For any other emergency
- To consolidate your debt
Bad Credit Loans Help You Improve Your Credit History
No loan can be better than bad credit loan when it comes to building credit. Your score will go up if you do not make any default in repayment of credit card bills and utility expenses. If you continue to pay off your dues timely, it shows up that you fulfil your financial obligations. With higher creditworthiness, you could apply for a loan at a lower interest rate and the best deals next time.
Make sure information on electoral roll is accurate and updated. Try to go through your credit report at least once in a quarter to ensure it does contain your contact details accurate and does not show any erroneous default. A lender always tries to check your credit report to know how you have handled debts in past. With timely repayment of your poor credit loan, you can improve your credit rating.
One of the major bad credit loan benefits is that they come with fast approval. You need to just put in the application form online. The lender will take a few minutes to go through your application. Once approved, you will get the quotation. If you give your confirmation, you will get the money transferred to your account the same day. If you submit your application on a holiday, you will get funds the next day.
No Collateral and No Guarantor
Unlike secured loans, these loans are unsecured and require neither collateral nor guarantor. Since these loans are taken out when you come across an emergency, direct lenders for bad credit do not trouble you in arranging collateral. However, you can put a security against your loan if you wish to do so. This will let you have the loan at competitive interest rates.
Finance Ever will never ask you to arrange a guarantor, as we know that it may take a long time to arrange an individual with a good credit history, and you cannot wait for so long if you need funds for unexpected expenditure.
No Credit Check
The loans for people with bad credit history do not require a credit check. Every time you apply for a loan, lenders make a hard credit check that leaves footprints on your credit report and pulls your score. When you take out a bad credit loan, lenders do not run a hard credit check. You do not need to worry of losing your score. They make soft inquiries to know about your repayment capacity.
You May Get Larger Funds
These emergency loans allow you to borrow more than your credit card. The lender will disburse money after careful analysis of your income statement. You can get a large amount if your income sources are steady.
Finance Ever provides these loans at lower interest rates than other direct lenders and guide you how to get a loan with bad credit in uk. Apply online today!