Making an application for a loan though you have poor credit If it's to finance a new car to get to work or pay for a sudden and unexpected expense, sometimes you find yourself in need of additional cash. However, the choices are limited if your credit score doesn't look so great. There are plenty of options: dependent on your financial situation it is possible to qualify for a loan from an agency that deals with loans for those with bad credit. With the number of lenders there, the main trouble is picking the right one. MoneySuperMarket offers this service. We collaborate with lenders from across the market and perform what's called"soft searches" to find out the types of loans you could qualify for, and in an approach that doesn't harm your credit score. Representative 23.3% APR Money bag illustration Types of loan for bad credit Everyone living in the UK has a bank account that tracks the history of their borrowing. This is known as your credit score which is expressed as a number. The greater your credit score is, the more trustworthy an a creditor you're believed to be. Your credit score is a reflection of the past problems with paying back credit card or loan charges. This makes it difficult to get money in the future. Also, people from overseas or younger can have no credit history. There are still options for you if you're in this situation. Secured Loans They are among the most commonly used choices, as the lender reduces the risk through collateral. Secured loans are based on the condition that the borrower will put up valuable property like their home or automobile. This collateral can be used to offset the increased risk. Learn more about Guarantor loans Guarantor loans are available to borrowers with poor credit ratings who are left with no alternatives. These loans are secured by a close family member or friend who will pay the rest when the borrower is in default. They often have high rates of interest, due to the additional risk. Find out more Personal credit Individual loans are offered to people with less than excellent credit scores. There's usually a fairly restricted amount you can borrow. Additionally, you can anticipate more expensive APRs since without collateral or a guarantor, banks are worried you may be in default. These loans can be extremely costly in the long run. Find out more If you can improve your credit score, you may get better deals A higher credit score may be a sign that you have better choices for loan rates. Credit Monitor allows you to check your score absolutely free. Get personalized tips to help you maintain your score and improve it. My score Illustration of a credit monitor Here are some tips to keep in mind when applying for a loan even if you don't have good credit Both the borrower and the lender are subject to risk. When you are applying for a loan, it is important that you do your research. Lenders consider people who have lower credit scores to be more at the risk of being in default. Here are some tips you must be aware of: 1 Does the loan seem to be feasible? The lower your credit score, the more expensive the terms you are likely to receive and the lower amount you can get a loan. Check that the repayment schedule fits into your monthly budget. Also, keep in mind that loans with higher interest rates tend to be more expensive overall. 2 The consequences of defaulting could be severe The consequences of failing to pay can be serious and could result in collections agencies, forced payment plans, or even legal action. There's no problem if you pay your bills promptly. 3 There are restrictions on the amount you can borrow Since bad credit is more risk for the lender, you're less likely to receive a large amount of money in one go. It is important to be aware of the amount you are able to get. This is especially true in light of the higher interest rates. 4 Your credit score is important. Other factors are also considered by lenders including your income or equity (if you intend to use it for security), and any outstanding loans due. 5 It is also possible to look up other information In evaluating your application for a loan they will take into account your income, the home's equity (if it's to be utilized as security) as well as any outstanding loans you currently pay. 6 There are ways to boost your score If you are able to make your monthly obligations punctually, your credit score should rise. Credit agencies appreciate proof that people are responsible when borrowing money. How can you compare loans to MoneySuperMarket Find the perfect loan to meet your needs, and look into the rates that you are certain to receive. It doesn't take too long We'd like to know more about yourself, your financial situation and the loan you'd like We scour the market We will search the loan market for loans from a variety of lenders in the market. Choose your loan You'll be able to determine the amount of the loan as well as whether you're likely to be accepted. If you have a loan that has been approved, the offer you see is the deal you will receive It can be confusing to determine what offer you'll receive or if your loan application will be approved. If you're pre-approved for a loan you're aware that the deal you see is the deal you'll receive - you'll know where you stand, with information that will assist you in making the right choice. Feel confident when you apply If you've been approved, the loan amount, duration , and interest rate are all verified. Tailored to your needs Knowing what you can borrow and how much it will set you back lets you make the most informed decision regarding the loan you choose. You're safe in our hands This protects your credit score, making it less likely that you will be turned down when you apply Compare loans What are the best ways to get a loan even with bad credit? No matter if your credit score good or not, you can get loans in the same way when you apply to the lender. Once you've submitted your application to a lender, they will evaluate the eligibility of you based on the credit score. If you have poor credit, you're most likely to be qualified for loans from businesses that specialize in loans for people with bad credit. What is the most straightforward loan you can qualify for It all depends on your particular circumstances. You might be able to get a secured loan if your house is owned. Guarantor loan might be more appropriate for those with poor credit. Online loans are possible. It's simple to verify your credit eligibility Online Loan for Bad Credit; fastloankl.com, and make an application for one. Although some lenders may be able to approve you quickly for loans, most applicants with bad credit will have to undergo a credit check that can take as long as 24 hours. If you contact them by phone or email, you'll be informed if your application has been approved.