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Unsecured Personal Loans Bad Credit

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When you search for a loan with us, a soft search will be carried out on your credit file to match you with the most suitable offer. All lenders on our panel are authorised by the FCA and will conduct a hard credit check if you proceed to take out a loan with them.

Representative Example: £400 loan repayable over 39 weeks at £18.96 per week, Rate of interest 113.46% p.a fixed; Representative 498.78% APR, Total amount payable is £739.44.

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If you're looking for unsecured personal loans online, there are many lenders out there offering such loans. From a credit broker to a standard finance source, there are many sources of unsecured personal loans UK if you need one.

Yet if you're looking at unsecured personal loans for poor credit, there are several things you should look at before considering an application for loan finance. The information in your credit file could make it harder to find a loan. Unsecured personal loans good credit may be easier to find than unsecured loans poor credit, purely because poor credit means that you pose a greater risk to the lender if you get the loan. After all, they want to know you can pay it back on time.

In this article, we're going to explore some questions you might have about getting unsecured personal loans with bad credit. If you think your credit file may let you down when looking at unsecured loans, keep reading. We hope this information may help. We also look at other important loan topics such as APR, interest rates, and fees.

Can a bad credit history harm your ability to apply for unsecured loans?

Anyone can run into money problems. However, if you want to borrow a loan amount and you've had issues with monthly repayments on unsecured loans (or secured ones) in the past, they could make it harder to find a loan now. The lender might apply a higher interest rate, meaning the total amount payable would be higher. There might also be fees involved alongside the interest rates applied to the loan.

In each case, whether looking at secured loans or unsecured personal loans direct lenders, it's vital to think about how much money you need to borrow via a loan. Don't apply without doing your sums. If you have existing debt on another loan, maybe for a car or other purchase, consider whether you could still afford those repayments if you took on another debt as well. Your ability to repay should also consider a change in circumstances that may make it harder to pay off your debt. Variations in the interest rate might also potentially cause problems.

Should I look at unsecured personal loans, bad credit, direct lenders?

Some lenders specialise in unsecured personal loans poor credit customers. You may not have heard of their names, but all are authorised and regulated by the Financial Conduct Authority (FCA). They will still check your credit history before considering you for loans for bad credit.

However, since some lenders do focus on unsecured personal loans for bad credit, they may have different criteria from regular lenders. As such, lenders offering a loan for bad credit may be able to help you when other companies cannot.

Can you repay the loan amount?

Look at your monthly income and the amount of money you pay out each month. Could you repay the loan if you were approved for it? Think about other repayment terms you already have and the fees involved. A car loan, card debt, regular bills for your home... check the details for each and then go back and check your figures are correct.

You may be able to reduce one or more of your total outgoings over the coming months to save some money before making your application. Look at whether an existing loan is based on a fixed interest rate rather than a variable one too. This would mean the interest rate won't change and you at least know what the forthcoming payments will be.

It might feel as if you're wasting time when you might simply put in an application. However, it's smart to know where you stand before you begin.

Could you improve your credit score before applying for an unsecured loan?

Your credit score can influence your chances of being approved for an unsecured loan. Just as late payments and non-payments can affect your credit score, so too can good behaviour. If you work on improving your credit history by clearing debts, clearing your credit card payment on time, and meeting all other monthly payments on time, this could help improve your credit rating. It might also improve your chances to get a loan.

So, if you do not need to get unsecured personal loans online for bad credit now, do everything you can to bolster your credit rating before that time comes. Even if you can only marginally boost your credit rating, it might make a difference when looking for a loan.

Be wary of looking for quick unsecured personal loans bad credit

It's understandable that you may want a fast solution for a personal loan. However, unsecured personal loans fast approval won't be realistic to get. A bad credit lender must consider whether you will be able to repay your loan and whether you are in a position to borrow money and meet the monthly payments. All this takes some time. Don't worry, it's not going to take weeks, but don't expect money to be in your account within hours.

Make sure you check unsecured personal loans bad credit with a reputable company

Regardless of the type of loan you want, only look for a loan supplied by a company that is authorised and regulated by the Financial Conduct Authority. Their trading style may vary, but they should all have a registered office and FCA approval. Choose a lender that meets these requirements.

Unsecured personal loans uk bad credit - do they incur a higher interest rate?

They can do, yes. The cost of borrowing might be higher and the repayments larger. Look at the representative APR for the type of loan you would like to get. A representative example for two or more bad credit loans might help you work out which would most suit your needs. In this way, you might still be able to look at competitive bad credit loans.

Is there such a thing as unsecured personal loans bad credit guaranteed approval?

No. Many people do use search engines with terms like these:

  • Unsecured personal loans no credit check
  • Unsecured personal loans guaranteed approval

This means they're looking for a fast personal loan with the minimum of hassle. It's understandable but very important that you understand the amount you would like to borrow is not necessarily the amount you might potentially be offered. A lender offering these loans must get enough information on you to determine whether you would make the repayments each month.

Can you get unsecured personal loans no credit?

This might refer to one of two things:

  • Looking for a loan if you have no credit history to go on
  • Applying for a loan and hoping the lender won't do a credit check

People often look for information on getting a personal loan without passing a check first, but this won't happen. Lenders have certain processes they must adhere to before offering a personal loan of any kind. The good news is that this points you to a reliable lender you can trust.

Are there unsecured personal loans bad credit no guarantor direct lender options?

Some direct lenders may consider lending to people who do not have a guarantor. This is someone who would pay the loan if the applicant failed to do so. Whether it was for a car, home improvements, paid over a term of months or over years, it wouldn't matter. A guarantor means the people offering the finance would have a guarantee of getting their finance back by the end of the term.

Think carefully before borrowing with a guarantor. While it might be possible over a secured or unsecured term, borrowing like this might put your relationship at risk.

How can you find a competitive deal on rates?

Borrowing finance over several months or years involves monthly repayments. This applies to unsecured personal loan lenders for bad credit as it does to all other lending products. Think about a finance offer with a competitive annual percentage rate (APR). The APR tells you how much you'll pay in interest during your repayment term. Choose the most competitive deal you can and remember that repaying over fewer years will reduce the total interest paid on your finance.

Make sure you research lots of offers before you apply online. Think about these aspects for each one:

  • How much would you need to pay per month?
  • Which loans have the most appealing interest rates?
  • Are there any fees involved?
  • Can you choose to borrow less and get cheaper repayments?
  • Are there fixed or variable rates available?
  • Would a fixed rate be easier for you if you need certainty?
  • What if you choose a variable rate if it works out cheaper to start with while rates are low?
  • If you need low rates to be able to repay what you borrow, would you have trouble repaying the amount if rates then went up?

Remember that if you secured the finance on something of value, i.e., your home or even your car, the security is at risk if you find it difficult to repay what you borrow.

Loanza can help

At Loanza, we specialise in helping people find a direct source for loans of up to £10,000. We charge no fees and you can use our service today if you wish. We know you want to keep things as simple as possible. Our credit broker service helps achieve that aim. Get started now with a zero obligation, free search that won't harm your credit score.