Personal Loans for Bad Credit
Having a bad credit rating can occur for a number of reasons. If you have previously had difficulty repaying a loan or other repayments and not using available credit. This may seem unfair but because you have never used credit, no one knows if you could make the repayments. Other elements that will affect your score; payments on mortgages, credit cards, overdrafts etc. Ensuring you keep on top of all your payments will benefit you and you will be more likely to have a better credit score.
A bad credit loan is often taken over a much shorter period of time, however, often more expensive. Taking out a loan with bad credit can be an opportunity for you to improve your credit history, by being a reliable borrower. Managing your repayments perfectly should boost your credit score. This will then make you a more appealing candidate for a loan in the future. The benefit of a bad credit loan is they are often available pretty quickly after your application.
You will find that bad credit loans are generally more expensive than loans for those people who have good credit. The higher interest rates and shorter terms help the lenders reduce their risk of a borrower not paying the loan back. This type of loan can be very useful for people who need the money quickly. You must always ensure you are able to make the repayments before accepting the loan.
Applying for an Unsecured Personal Loan with Bad Credit
Applying for a bad credit loan is like applying for any other personal loan. You need to work out what you can comfortably afford to repay each month. Always compare loans from a range of different lenders to find the best loan for you and your financial situation. Personal Loans can be used for a whole host of things, personal spending, a car purchase or lease, home improvements or decoration, weddings, holidays and much more. We would always recommend comparing loans from multiple lenders before making your decision and Money ID can help you search and compare loans for bad credit in a matter of minutes.
You simply fill out your personal details into a soft search application form and we process the information and show you your results within a couple of minutes. Then you can compare the options you are given and work out which is the best loan option for you. To apply for a bad credit loan simply head to Get My Rates to get started. When you are approved for a bad credit loan you can use the funds just as you would any other personal loan, to pay large expenses up front. This may be for a car, home improvements, a wedding a holiday or even to consolidate other debt when one monthly payment is more manageable for you.
Making Repayments on a Bad Credit Loan
Draw up a manageable monthly budget and stick to it. Don’t miss or delay your loan repayments. If you have any worries or doubts about making your repayments, speak to your lender as soon as possible. Your lender will discuss your available options with you. Try not to apply for other credit whilst you are paying your loan off. This may affect your ability to make your payments and also have a negative affect on your credit score.
You need to remember your credit score is not set in stone. Your score is affected by your personal financial behaviour . If you have the ability to influence it, we would highly recommend you do so. This will improve the chance of you getting the loan you want.
The loans we offer through Money ID are unsecured personal loans meaning you do not have to secure your lending against an asset such as a house, this includes all bad credit loans. Please note that Money ID is a credit broker, not a lender. That means we don’t provide credit to you, but we can make your search for the perfect lender and suitable loan much easier by helping you compare your offers all in one place. Please also be aware that any decisions are not made by Money ID and are made by the lender. Agreements for loans are between the lender and the customer and not Money ID.