Having a bad credit score when you are trying to get a loan may set you back a few paces. But, there are still plenty of ways you can get your hands on one. The majority of people in the UK do not have the ‘perfect’ score, so if you do not either, there is no need to be overly worried. Although, we suggest that you put time and effort into increasing your score. Most of the major banks do not tend to offer bad credit loans to those who need them, so, thankfully, this is where LoanPig steps in to help you.
What is bad credit?
Having a bad score shows lenders that you may be a higher risk to lend money too. The low scores usually means that you have some sort of negative aspects to your credit history or you have a history of not being able to keep up with payments. Whatever the reasoning for a low credit score, your chances are lowered when searching for a loan.
As mentioned above, there are millions of people around the UK who have a low credit score. But, it is difficult to suggest what the average credit score number lies at as credit rating company has a different scoring system. But, according to ‘Experian’, their average credit score rating varies depending on age and whereabouts you live. If you wish to find out more about the different credit scores around the UK click here.
Where can I find a lender who offers loans for low credit?
Finding somewhere which can offer loans for low credit is a difficult task. This is because they are seen as a greater risk to lend too. Usually, when thinking of getting a loan, you may automatically think of a bank. But, a lot of banks within the UK do not offer loans for those with low scores. Luckily, there are multiple lenders, including us here at LoanPig who can offer you a loan, even if your credit score is not the best. We understand that you may have previously struggled with your finances, but that should not be something which completely eliminates your chances.
What to do when applying for a loan
Before you apply for a loan, you need to ask yourself several questions to ensure that you can afford what you are applying for. Some of these may include:
- Can I afford the repayments?
- Is the duration long enough?
- How much do I need to borrow?
- Are there any other options I can take instead of a loan?
You should be cautious when applying for a loan as you do not want to end up in further debt if you struggle to repay this loan. Although it may sound like a great option, you should also consider all of the other options including borrowing from friends and family. This is because loans can be very risky, therefore they should always be your last option.