When you are broke you look for quick avenues of borrowing. From sudden car break down to seasonal flu, any of the urgent needs can result in an ad hoc hunt for quick loans. However, you are unable to borrow with bad credit from traditional banks and high street lenders. For, they generally have strict regulations to choose their creditworthy borrowers.
However, in the past decade, the growth of the online financial market is phenomenal in the UK and a lot of regulated loan partners have opened shops for desperate borrowers on the web. Let’s find out below 5 substitutes to borrow with bad credit loans in the UK.
Touted as a bad credit borrower’s haven, 80 percent of payday borrowers go for online deals. In fact, many of these borrowers go for multiple payday loans in the same year. As the name suggests payday loans are very small loans which are required to be repaid on your next payday. There is no credit check or no hassle owing to your past credit history or guarantor or collateral.
Most borrowers opt for payday loans up to £500 in the UK. Typically you would pay £80-£100 as interest on payday loan of £500 in a month. Online payday loans are fasted loans available. In fact, some of the lenders claim that you can borrow within 20 minutes. If you too need fast loans, do not forget to contact a broker to get access to safe payday loans. For, a lot of loan sharks are always on a lookout for borrowers in need of quick loans.
Those who seek easy repayment loans despite fast disbursement prefer to go for doorstep loans. Unlike payday loans, you get to pay in weekly, bi-monthly or monthly instalments in doorstep loans. Doorstep loans are home credit facility which is also available to borrowers without a stable income source. Whether you are a stay at home mother, living on benefits or pension relief or are self-employed, part-time employed or searching for a job, you can successfully apply for doorstep loans.
The loans are absolutely tailored to the customer needs. When you contact a loan adviser with your loan requirement, they will connect you to the lenders who are willing to offer you a loan. An informal interview is preceded before the final agreement of door to door (or doorstep) loan. After the mutual agreement between the lender and the borrower, the bond is signed between the two. The repayments are flexible and prescheduled as per the convenience of the borrower. From loan disbursement to reimbursement, all processing is carried by a loan agent who visits your home during each step.
Another quick way to borrow bad credit loan at low interest is to apply for homeowner loans. These are recommended to those who want larger loans, say from £500 to £5000 or even more. The loan is extended as a secured loan against the home equity you own. Many bad credit borrowers also borrow homeowner loans for home improvement, debt consolidation or wedding celebration. Whatever be your cause for a home equity loan, it is important to borrow with affordable instalments. For, only consistent loan repayments can ensure successful maturity of your loan.
Short Term Personal Loans
Being a homeowner you can also opt for an unsecured or personal loan for short term. However, the rate of interest would be higher than a secured loan. To get a fast loan, the mediation of loan broker is required. For, they are experts at locating the available deals. It would be stressful as well as time-consuming for a first-time borrower to locate the specialist lenders for bad credit loans. The Financial Conduct Authority of UK also authorises loan brokers to assist and share advice to borrowers who are struggling to get loans.
All in all, it would not be an exaggeration to say that borrowing with bad credit loans is hassle-free as well as fast-paced today in the UK. At least, it is easier to make a decision being a well aware borrower. Hope you could successfully find your loan partner soon!