Bad Credit Loans
How much money do you need?
Rates from 43.1% APR to 1333% APR. Minimum Loan Length is 1 month. Maximum Loan Length is 36 months. Representative Example: £1,200 borrowed for up to 75 days. Total amount repayable is: £1506. Interest charged is 0.34% per day, amounting to £306, annual interest rate of 124% (variable). Representative APR: 49.7% (variable).
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Bad Credit Loans?
Loans are a financial tool to help those in case of emergencies. However, sometimes credit problems can make it difficult to be considered for a loan. We work with a panel of lenders that will still consider your application if you credit isn't the best.
These loans are available to people with low credit scores or even bankruptcy filings. Personal Loans often come with high interest rates. Besides, such loans can not only help you get back on track with your finances, but also clear your previous debts.
What Are the Common Types of Bad Credit Loans in The UK?
There are essentially various types of bad credit loans. For this reason, it's recommended to know about different forms to make sure you select the right one for your specific set of circumstances.
A personal loan (also known as a signature loan) is a form of loan that requires no collateral. The main elements or the eligibility benchmark taken into consideration when applying for a personal loan are one's income, credit score, current debt load and finances in general.
A secured loan is a loan that is backed by collateral, assets which you pledge to the lending institution. In the event of default on the loan, the lending institution has the right to sell the asset in order to recover the amount you borrowed. Typically, secured loans attract less interest rate than unsecured loans.
It is a simple loan that requires a co-signer (or guarantor). This is a reasonable way to get a loan if you have been turned down by banks and loan agencies because of your bad credit. Besides, the guarantor will be responsible for the loan debt and if the borrower defaults – the guarantor will be required to make the payments until the loan is paid off.
Peer to peer Lending (also known as crowdlending) is a form of alternative finance that allows you to borrow money from individuals and businesses in your social network. You mainly get the amount quickly and easily, and at a rate that may be lower than that offered by a bank or other alternative finance provider.
Why May a Bad Credit Loan Be Able to Help Me?
People remain hesitant applying for a bad credit loan as there is a common opinion about it that they come with a significantly higher interest rate. However, there are some handy advantages to it as well.
- Bad Credit personal loans could assist you in case of emergency.
- By keeping up with your repayments, this could have a positive impact on your credit score.
Things to Know Before
Applying For a Bad Credit Loan
You should never apply for a bad credit loan unless you know what the risks are. Keep these things in mind when applying:
How much you need to borrow?
You must consider how much loans for bad credit in the UK you really need. If you can afford to cut the cost, then we suggest you do that, before applying for a loan in the UK.
Whether you can afford the repayment
Timely repayment of any loan, not just bad credit loan, is necessary as it can affect your score. For this reason, you must ensure that you can afford repaying the lender before applying for a loan.
The consequence of defaulting
It is necessary to avoid defaulting and to pay the loan amount in due time. Otherwise, things could get messy really fast as the lender can resort to legal action against you. Moreover, they can get assistance from collections agencies, who might disrupt your business by constant phone calls and other means.
How Can I Get Loans
With Poor Credits in the UK?
Here, we will share the two different ways you can receive loans for bad credit in the United Kingdom.
Apply for credit loans from direct lenders
The first method is getting in contact with a direct lender. This option comes in handy when you wish to go through a minimum eligibility criteria, and only want the lender to look into your income and past credit history.
Apply for credit loans from brokers
A credit broker serves as a middle-man between people who want to borrow money and loan providers. A broker like CocoLoan will help by searching through various loan providers for you to help find good offers for bad credit loans.
Benefits of Getting Bad Credit Loans With CocoLoan
CocoLoans is a broker, we work with a panel of lenders who will try and assist you when you need help getting loans online, even if you have bad credit.
The process is fast and easy
Once you provide essential details about yourself and related to loan requirements, we will connect you to a list of compatible lenders from our vast database. The whole process is simple to follow!
Top-notch security measures
SSL certificate and 256-bit encryption are at the heart of our security protocol, and therefore, data are kept safe and secure in our database.
The loan offered is tailored to you
The deals offered by the lenders, such as loan amounts, repayment schedules, and interest rates are tailored to suit your needs.
Get Your Bad Credit Loans Today!
So what are you waiting for?
Get a bad credit loan using CocoLoan! We will put you into contact with lenders with reasonable interest rates, improving your overall credit score.