Applying for a bad credit loans for self-employed is often required when starting your own business. However, accepting is not always straightforward, especially when you have bad credit.
If you have already borrowed money or had past issues with repayments, you will likely have a bad credit score. In such a situation, the best possible solution for you is unsecured self-employed loans. For this, you will need to find out if you are eligible for a bad credit loan or not.
Read on as we will discuss what self-employed loans with no credit check are, what is eligibility requirement and how you can get approved.
What are Bad Credit Loans?
Bad credit loans are specifically designed for people with a bad credit score. Bad credit loans are ideal for those who have had issues with borrowing in the past, have a thin credit life, or are self-employed. These loans usually have a higher interest rate than standard personal loans.
These loans are often unsecured, so you don’t need to put anything as collateral when applying. Also, in unsecured self-employed loans, the terms of application are more accessible and seamless than in secured personal loans.
How Do No Credit Check Loans work?
Lenders with no credit check loan do not perform any hard credit inquiry of a borrower’s credit report. However, lenders do ask for personal information to show that you are financially capable of paying back the loan. This personal information may include but is not limited to proof of income, bank statements, and records of borrowings like auto loans or student loans.
Simply put, a no credit check loan may require a soft credit check, but the borrower gets approved regardless of their credit history. So, no credit check loans can be an appealing option for potential borrowers concerned about their bad credit.
Do Lenders Offer Self-employed Loans in the UK?
It is possible to get a loan if you are self-employed and living in the UK. However, the lenders generally have stricter requirements and eligibility checks. Due to the income fluctuation, a self-employed person is seen as riskier.
But you do not need to worry as there are plenty of things you can do to improve your chances. These include finding the right lender, building a bigger deposit, and showing an expected future income stream.
Once you know what self-employed bad credit loans are, and you can get these in the UK, let’s move to the top 3 self-employed lenders in the UK.
3 Best Self-employed Lenders for Bad Credit Loans
Below are the three best self-employed lenders with their interest rates and loan amounts. Compare all three to find the best lender for your financial needs.
Everyday Loan is a direct lender that offers loan from £1000 to £15000 with a maximum annual percentage rate (APR) of 299.9%(*). The repayment term of this lender range from 18 months to 60 months(*). To put it in practical, let’s say a borrower needs £3000 with a repayment term of 24 months(*). With 71.3% of APR, the total repayment after 24 months will be £5706 – monthly repayment being £237.5(*).
One of the main advantages of Everyday Loans is that it charges no hidden fees. Also, the loan application is online and paves the way for a quick and easy process, and the borrower gets money in the account on the same day.
Talking about eligibility, Everyday Loans even offers loans to tenants and people living with parents. The essential eligibility requirement is that a borrower should be 18 years old, must be a resident of Uk and earn £10,000 a year.
2. Likely Loans
The maximum amount borrowed from Likely Loan is £5000 at an APR of 59.90%(*). Its loan term expands from 12 months to 36 months(*). For instance, if you borrow £2,000 with a repayment plan of 24 months at 59.9%, your monthly repayment will be £131.05, and the total payable amount will be £3,145.20(*).
Like Everyday Loan, Likely Loan guarantees money in your account within 24 hours. One best thing about this lender is that it does not charge you any fees before you are accepted. You can apply for and manage your Loan online without causing any damage to your credit score. The Likely Loans eligibility requirements are the same as the Everyday Loan.
3. Oplo Homeowners
For Oplo Homeowners, the loan amount ranges from £5,000 to £100,000, and the repayment term is 36 to 180 months(*). It has one of the lowest APRs in the category, which stands at 28.50%(*). For instance, if a borrower takes a loan of £30,253 for 160 months at an interest rate of 10.3%, he will repay £58,144 in total(*). The monthly repayment amount will be £363.40(*).
The main reason to choose Oplo Homeowners is their low-interest rate. Apart from this, they offer 24/7 service with their online application process. It has one of the best customer care services, with reasonable rates for bad credit scores.
The requirement for Oplo Homeowners approval is that a borrower must be over 18+, with UK residency, and able to repay the amount.
Compare all three self-employed loans with no credit check options with their APRs and loan amounts to find the best possible solution for your financial needs.