Bad Credit Loan
Bad credit loans are also referred to as "Poor Credit Loans" or "Bad Credit History Loans". They are all aimed at the same area: people who have a poor credit rating.
What is a Bad Credit Loan?
We all have a credit rating, as soon as we take out a credit card, loan or even a mobile phone. Depending on how good we are with paying those bills or repayments will affect our credit rating. If you have had trouble with these, your rating will be less than attractive to loan lenders. A bad credit loan is designed for you.
The bad credit loan broker will search the market on your behalf to find a loan that will meet your needs. They will know which lenders are more likely to accept you even if you are a high-risk borrower.
A range of loan types are available on these - secured or unsecured are both available.
What Do I Need to Watch out for?
So a bad credit loan might step in where you are worried about your poor credit history, but tread with caution:
If you are using your car or home as collateral against your loan, you risk losing it if you are unable to meet repayments. So you may literally have your home taken away from you if you are unable to make the monthly loan payment. Make sure you have considered this and have evaluated how much you can afford to borrow. Not only could you lose a valuable asset but you could end up with an even worse credit rating than you began with!
As with all loans, have a good look around before committing yourself. There are so many brokers available, so it is worth comparing their services.
Payday Loans - Loans for All
Payday loans are another easy way to get hold of money when you need it fast. The payday loan company will require you to fill out a quick online application, and the decision will be made in minutes.
What About Credit Checks?
Ok, so you may have been refused loans in the past, thanks to your credit history. With a payday loan this is not a worry - they will not carry out a credit check on you. Why? Because they know that you are more than likely to want to pay back the loan as fast as possible. The usual time is two weeks to a month - the time until your next payday - and because the APR rate is usually very high, it is worth getting the repayment out of the way quickly.
The only requirements with payday loans usually include minimum age and that you are in employment - the minimum monthly wage requirement is changes according to lender but is usually around £300 a month. The final requirement is usually that you live in the UK. Some lenders will need you to have a debit card and a UK bank account, but this varies.
Make sure you have checked the basics: what is the APR rate? What are the requirements? Then check yourself: Will I be able to make the repayment? What happens if I can't pay?