If your credit score is less than stellar you’re not alone. Nearly 15 million UK residents are currently struggling with bad credit, often through no fault of their own. Now, you might believe that a troubled credit history automatically means you won’t be eligible to borrow money. But that’s not necessarily the case. You may actually have more lending options than you realise.
If a poor credit rating is stopping you from applying for the loan you need we may be able to help. Bad Credit Loans offers short term loans for people with poor credit histories. These bad credit loans can help you to successfully deal with life’s little financial surprises, covering unexpected costs that can crop up while you’re waiting for your next payday to arrive.
Credit ratings are based on a person’s borrowing history. They are used to assess a borrower’s creditworthiness. A poor credit history can adversely impact your ability to secure much the financing you need to purchase a home or a car. Bad credit can also limit your access to much needed emergency loans to cover unexpected expenses.
A poor credit score can be the result of a variety of different factors. For some people it’s simply a matter of having no real credit history at all. If you’ve never had an ongoing credit of any kind lenders have no way of knowing if you’re likely to keep up with your payments or if your a high risk borrower. That alone and be a mark against you.
A bad credit history typically reflects a history of financial difficulties, including:
At Bad Credit Loans we understand that financial emergencies can happen to anyone, regardless of credit history. Short term loans for people with bad credit can help to relieve some of the stress, both financial and emotional, that comes with sudden unplanned expenses.
A bad credit short term loan is, at its most basic, simply a loan with a tightly structured repayment period. These small loans are designed to be paid off, with interest, within a short period of time. Repayment periods for short term loans are typically well under 12 months.
Short term loans include so-called payday loans which require borrowers to repay their loan within a matter of weeks (typically when they receive their next pay cheque) as well as small loans with a repayment period of a few months. These small loans help to address the specific finance needs of borrowers with poor credit ratings.
Unfortunately, a poor credit history (regardless of circumstances) technically classes the borrower as a high risk customer. In order to agree to the loan lenders will need to charge more for their loan products. So any short term loan for a customer with bad credit will almost always include higher interest rates than a loan for someone with a sterling credit rating.
However, short term loans for people with bad credit fill an important finance need in the UK. They provide much needed finance options for many people and, in the long run, can actually help borrowers to rebuild their credit histories.
Even if your credit history is less than stellar you should still have access to the funds you need in an emergency. When it comes to short term loans for bad credit there are three basic lending opportunities:
In a financial emergency you may need to access cash as quickly as possible. If your credit history poor, or even nonexistent, a short term bad credit loan can get you the funding you need. The application process is easy and most customers will receive a loan determination almost immediately.
The benefits of a short term loan for people with bad credit are obvious:
Short term loan offers bad credit borrowers valuable financial stability. However, they are not without risk. It is important that borrowers are aware of the restrictions that come with bad credit short term loans:
At Bad Credit Loans we accept applications from any UK citizen over the age of 18. In addition to being a UK citizen applicants must demonstrate their ability to repay any loan based on their current financial profile. Applicants will be required to provide accurate information concerning their current income as well as any and all outstanding debt.
In summary, to be eligible for short term bad credit loans applicants should be:
Any loan comes with risks. Before you commit to accepting a short term loan offer carefully consider your ability to repay the loan in accordance with the terms set out by the lender. Defaulting on any loan can adversely impact your credit rating making it even more difficult to secure funds in the future.
Short term loans for people with bad credit can offer the financial flexibility you need in times of emergency. However, they may not always be the best option. Consider your financial situation carefully and be sure you understand your rights and responsibilities as a borrower before committing to any loan agreement.
To learn more about sensible money management visit Money Helper, a UK government resource designed to help people manage their finances effectively and responsibly. For those currently struggling with existing debt, or who may be finding it difficult to keep up with the repayment of any outstanding loans, you can refer to the National Debt Line. These services are free to the public and are designed to help UK residents manage their debt and take control of their financial futures.