Have you been turned down for a loan with a bank due to bad credit? It may still be possible to get the cash you need.
Why don’t banks lend to people with bad credit?
When a person applies to borrow money from a bank, the bank’s credit assessor checks that person’s credit score. A person’s credit score provides financial history, so the bank can see who is likely to keep up with their repayments and who is more likely to default and miss payments.
By comparison, a person with a bad credit score may have struggled with some financial difficulties in the past. As a result of those difficulties, they may have missed some payments or filed for bankruptcy.
If a person with a low credit score applies for a bank loan, it’s likely most lenders will decline the credit. Fortunately, there are some lenders willing to offer loans to people with less than perfect credit.
What is a bad credit loan?
Bad credit loans are usually set up as short-term payday loans, so you’re expected to repay the amount you borrow quickly. When assessing your application, a bad credit lender will check your credit score.
What else do the lenders check?
Along with checking your credit score, lenders will also want to check income, bank accounts, addresses and outstanding credit.
Even though you’re asked to submit a valid mobile phone number, our panel of bad credit lenders won’t call you. Instead, your information will be verified online.
How do I apply for a bad credit loan?
The process for applying for your loan is quick and easy. Simply enter the amount of money you want to borrow and the period of time you want to repay your debt over.
The online calculator will work out how much your monthly repayments will be. If you can afford to keep up with your repayments, you can proceed to enter in your personal details.
You can find more information about the application process by viewing how it works.
How fast can I get the cash?
Usually on the same day Monday to Friday.
Does a bad credit loan affect my credit score?
As with any other type of credit, applying for a bad credit loan can affect your credit score. Make all your repayments on time, the lender will positively report the activity.
If you fall behind on your payments or don’t make payments at all, the lender will also report the lack of activity.
You could also incur penalty fees and late payment charges that increase the amount you owe.
Multiple credit checks carried out in a short amount of time will effect your score negatively.