Borrow up to £995
Rates from 278% to 1576%
3-12 month repayment
From £1,000 to £25,000
Rates from 4.7% to 278%
3-36 month repayment
Representative Example: Borrow £700 and pay £111.27 per month for 12 months at an interest rate of 140% per annum (fixed).
The total charge for credit is £635.24 The total amount repayable is £1335.24. Representative 277.5% APR (variable). Your APR rate will be based on your circumstances.
† Not all loan types and amounts are eligible for 20 minute payouts. Your chosen bank may increase the time you receive the funds.
How to compare loans if you have bad credit
Borrowing money has its own set of advantages and disadvantages that’s why it’s extremely vital to compare loans so you can make the most out of your financial decision. The UK loan industry is quite saturated and there are plenty of lenders who are competing for customers with their own unique credit products and services. While this can beneficial for you, as a competitive market normally brings in affordable rates and flexible payments terms, the number of options to choose from can be overwhelming. So you won’t struggle in the process, we have made this guide specifically on how to compare loans especially if you have bad credit.
Compare Loans in the internet
Before you compare loans and determine which option is ideal to your specific needs and circumstances, it might be best to know which types of credit products and lenders to compare first. Now, there are typically two kinds of lenders that can help you when you are looking for additional funding:
- Banks, credit unions, and brick-and-mortar lenders with their traditional loans
- Online lenders who specialize in granting flexible loan products with great speed and ease.
Both types of lenders have their own set of advantages and disadvantages but in this guide, we will be focusing more on comparing loans from online lenders. The reason for this is because online lenders normally have lower interest rates for their credit products. They also process applications a whole lot faster and can cater different borrowers with unique needs and circumstances including those that have bad credit.
Compare Loans if you have bad credit
For borrowers who don’t have that stellar credit rating, getting approved for a loan might be more difficult. The options are also far less and the interest rates tend to be higher. For this reason, it becomes extremely vital to compare loans if you have bad credit so you can find the deal that not only provides the most affordable rate available, but also a deal that is suited to your present needs and circumstances.
If you want to secure large amounts of borrowing with longer payment terms, you can compare loans that are:
- Secured Loans – The loans are secured on one of your assets like a property, vehicle, or stocks. With such security in place, lenders are more comfortable in offering your large amounts of credit with repayment terms that can last for numerous years. When you compare loans that are secured, be sure that you focus your search on options that provide the least interest rate as a single decimal can affect your overall payments.
- Personal Loans – The loans are unsecured which means that there is no need to offer some form of collateral to get qualified. Having a solid credit rating however, is typically a primary requirement. Try to compare loans that are unsecured based on your needs and circumstances. This means that the lender should cater your funding request despite your credit rating and tailor a payment term that is ideal to your budget.
- Guarantor Loans – The loans are ideal for people with bad credit as the presence of a guarantor offsets the risk involved in your credit rating. The guarantor is a person who will co-sign your loan deal and agree to cover its repayments in the event that you can’t keep up with them. When you compare loans with guarantor, be sure to find a lender that offers flexible payment terms. Also keep an eye on guarantor loans that allow you to make advance payments without fee so you can pay off your loan early if you need to and save money in the process.
If you want to secure just a small amount of extra funding to help you tide through until your next pay check arrives, compare loans that are:
- Payday Loans – The loans are offered in small amounts with short repayment periods. The financial products are ideal for emergency borrowing because 1.) You can get qualified even if you have bad credit, 2.) You can access them virtually any time of the day and 3.) The payment term is brief and straightforward. When you compare payday loans, try to prioritize those that provide the least APR (Annual Percentage Rate) as it will cost you lesser and those that provide the quickest processing time as this can be extremely helpful when you are in an emergency situation.
- Doorstep Loans – If you want to compare loans based on ease and convenience, then doorstep loans should be at the top of your list. This is because the kind of financing will deliver the money that you requested for in cash right at your front door. And if this is not convenient enough for you, the same agent who delivered the money to your home will return every week to collect the repayments. You simply don’t have to move an inch to obtain the funding that you are looking for!
- Small Instalment Loans – Payday loans generally require you to pay off the money that you borrowed and its interest rate in one, lump sum payment. If you are not comfortable with this kind of payment arrangement, you can compare loans that provide small amounts of borrowing with instalment payments.
How to compare loans for bad credit
When you compare loans for bad credit that have been mentioned above, there are things that you might want to consider in the process. This will help ensure that the results of your comparison are driven by a goal and that is to find the loan option that is affordable and is ideal to your needs and circumstances.
- Interest rates – Try to compare loans based on the lowest interest rates so you can enjoy a kind of financing that is cost effective.
- Payment terms – Ideally, you want to compare loans based on payment terms that are suited to your monthly earnings and outgoings. Try to get the shortest one possible too as it is generally cheaper that way.
- Extra fees and charges – As much as possible, you don’t want a loan agreement that has extra fees and charges.
Finally, don’t forget to compare loans based on the reputation of the lender providing them. A low interest rate loan with flexible payment term won’t do you much if the lender is untrustworthy or irresponsible to the needs and concerns of its borrowers.