Having poor credit is one thing that can frustrate you once you visit your bank with an emergency financial need. Of course, no one wishes to have a poor credit score, but it happens anyway.
For instance, people find it challenging to pay off their loans during this dire economic wave. As a result, they usually get themselves a bad credit score.
However, due to financial technology growth, lenders have emerged who can help you get poor credit loans in the UK.
However, you have to be careful whenever taking poor credit loans. You should be aware of your financial status before entering a deeper pit.
What is Poor Credit?
Poor credit comes after you have violated loan payment terms that you had agreed with your lender. Most lenders report your interaction with the loans on Experian, Equifax, or Transunion credit bureaus. The three bureaus assess your overall loan behaviour and develop the FICO score scale.
The FICO scale starts from 300 to 850, with 300 representing the poorest credit and 850 representing the most excellent credit score.
Poor credit starts from 300 to 579, and it will be tough to get a loan with that range of credit scores. Whenever you apply for a poor credit loan, the lender has the right to run a soft credit check and see your past financial behaviour.
The lenders use the information from one of the three credit bureaus to determine the amount of loan you can get. That also determines the interest rates once you apply for a poor credit loan.
But it would help if you did not panic since you will get the help you need at your most desperate moments.
What You Need to Get Poor Credit Loans in the UK
Getting a poor credit loan in the UK is not challenging’s as long as you get the best dealer. However, there are some things you should get ready with to get considered.
The most crucial aspect when getting loans with poor credit in the UK is having a steady income source. Of course, after the coronavirus pandemic, jobs and businesses have been so unstable. Therefore, you should make an effort to have more than one income source before you opt to get poor credit loans in the UK.
It would help if you also avail yourself of all the required documents before heading to your preferred lender or loan broker. For instance, the lender will need your bank statement, address proof, and government identity document.
Therefore, ensure that you have all those, and you will avoid frustrations.
What to Consider Before You Apply For Poor Credit Loans in the UK
- Check your credit score
Every year, every individual is entitled to a free credit report from one of the three credit bureaus. However, if you need some fast cash, you can get your account at any time at a fee.
Knowing your credit score allows you to see the range of loans you can get.
- Is your income stable?
Income stability during loan application is the most crucial part of the process. Stable income guarantees your timely repayment of your loan. In addition, you may qualify for a higher loan amount if you have a steady income guarantee.
- Does the lender report your repayment to any of the credit bureaus
Remember, you have a poor credit score, and it would help if you get a lender who would report your repayment behavior to one of the credit bureaus. That will help you rebuild your credit score, which might help you with future loans.
Where to Get Loans in The UK With Poor Credit?
Before applying for poor credit loans, you should first conduct a thorough background check on the lender or broker you will use.
This aspect comes after the tremendous growth of financial technology. The more Fintech grows, the more spam lenders and brokers emerge.
At least, you should know that not every lender out there is genuine; some are after your hard-earned cash.
And that’s why loan brokers like 786 loans come in place. This loan broker will help you get the best lender without charging you a single cent. In addition, you save your precious time and wait for them to send your details to different lenders.
So, you don’t have to jump from one lender to another seeking approval for your loan. What can be better than that?
The 786 loans broker will link you to potential lenders within the UK to help you regardless of your poor credit history. The lenders usually do a soft credit check to know the amount of loan you deserve.
The good thing about this broker is that their lenders do not exceed 49.7% APR*. And that’s cheaper than payday loan lenders out there.
You should always focus on more income and credit builder loans. The lenders associated with 786 loan brokers will help you rebuild your credit score. Always focus to get poor credit loans in the UK with a trusted source.