Getting an unsecured loan with bad credit
If you have bad credit then you will have done one of these,( meaning you will only be able to get an unsecured loan with bad credit from a company that specializes in bad credit customers);
Made a late payment ; Your credit history represents over a third of your credit score, so late or non payments really pull that credit score downwards.
Have a Judgement ; If you have a judgement on your credit history, that will tell any company you apply for credit with in the future that you had to go to court to be forced to pay a debt back. What company would want to lend their money out with little chance of seeing it again?
Declared bankruptcy; If you are a bankrupt then you tend to find it extremely difficult to get a loan anywhere, let alone an unsecured loan, this is because someone who claims bankruptcy is saying that at some point their debts became too large for them and they could not manage. This does not show a responsible customer to companies, making you a high risk lender.
Borrowed too much money ; If the percentage of your debt to income is too high then you will affect your credit score, also less likely to be considered for a loan because of responsible lending legislations.
As is quite common, having bad credit and not being able to gain a low-interest loan through Banks because of bad credit doesn't stop those months when we need that extra help. The car may have broken down and without getting it repaired you lose your ability of getting to work. No money and yet no choice, so an unsecured high interest loan is your only choice.
Whilst you may feel you will never get a loan with your credit rating, think again. Here are some loan companies that specialize in helping people who may otherwise struggle for a loan elsewhere.
What is an unsecured loan?
An unsecured loan is a loan that you get without having to guarantee it against something you own like a house or a car. It would always be cheaper to get a secured loan as the lender has something to fall back on, making you less of a risk.
If you are reading this article and searching for places to get an unsecured loan with bad credit history then you likely don't have the luxury of getting a low Apr loan. Just make sure you read how long you will be paying it back for and how much you will be paying back in total.
Places you can get an unsecured loan on your doorstep
Provident Personal Credit
Provident Personal Credit are a UK-based doorstep loan company that have agents all over the UK. You apply for a cash loan either online or an agent will go through the application with you at home. Once you have been accepted for a loan, the agent will bring the cash to your doorstep; Provident Personal credit do cash loans between £100 and £500. Once a week the agent will come and collect your weekly payment, sign your payment book and visit again the week after. Great for people who would otherwise struggle to receive the loan through lack of bank account.
If you become a Provident Personal Credit customer you can even earn extra money by referring a friend as a customer, your agent will give you £10 for every customer you refer to them and there is no limit.
Pounds to Pocket
If you need a bit more than £500 then Pounds to pocket will lend up to £2000 to people with bad credit. You apply on-line and funds are credited to your account with in 10 minutes. This has to be the fastest anyone has ever made borrowing money.
Pounds to pocket state that you need to be over 18, in employment or self employment, resident of the UK and have a bank account. If you can say yes to those then you will likely be accepted for a loan.
You pay back in 12 monthly installments and any interest and total amount payable is stated before you take the loan.
How to get the cheapest unsecured loan for bad credit history
Don't assume that just because you think you have bad credit that you have to settle for the highest interest rates. A good way to check exactly what you're dealing with is to request a credit report from Equifax.
What is more important to you, having the cheapest interest rate or being able to take a break if you have a slim month? Check all policies and see which suit you best, as some will let you make payment holidays or flexible pay amounts, where others are very concrete and you will not be able to move on payments.
Also be aware that the more places you apply for credit the worse your credit score will be, it raises alarm bells when a company see all the applications for credit. Why does your credit score go down with too many applications for credit too quickly? Because it looks like you are borrowing too much and it is telling the company that you may have been turned down by others already, making you a bad prospect.
If your credit rating isn't as bad as you thought but still too bad to be accepted by one of the mainstream lenders, take a look at someone like Amigo loans
Amigo loans Ltd
Amigo loans is another lender that does unsecured loans but is over half the Apr of others mentioned, so is worth trying first.
You can borrow from £500 up to a massive £5000 and take up to 5 years to pay it back. If you have a bigger purchase to make then Amigo loans is a better choice as the other lenders have a smaller maximum loan limit.
So with a bit more choice you can afford to buy that new car you need or get that conservatory to give your family some extra space. Maybe you just need to know that Christmas is taken care of. With an unsecured loan for people with bad credit, you can do that.