good loan companies for bad credit

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good loan companies for bad credit

Have you been refused credit from your bank or building society?

Don’t worry, there’s other options available to you. A poor credit history doesn’t make you ineligible for a loan. Loans for bad credit uk are available. There are many loan companies who will look at more than just your credit score when deciding if they will lend to you.

How to find the best loans for bad credit UK?

That’s where wefindanyloan.com can help. We find any loan is a specialist broker that use awarding winning technology to search a huge panel of Top UK lenders. They can help you find the best loan deal available to you. Wefindanyloan.com honestly is, The Easy Way To Find a Loan!

Simply put, it is a loan for people with a bad credit history. Maybe you missed a couple of repayments on an existing debt, or failed to pay a bill on time and was refused credit on a previous application. You may have never borrowed before, yet you still could find it hard to qualify for loan from a bank or high street lender. At the end of the day, the lender needs to know that you are reliable enough to make repayments on time. You may be too risky for some lenders, however to others you’re a opportunity to do some business in a very competitive industry.

Why choose loans for Bad Credit UK?

If you are considering a loan for bad credit uk, its because you have limited options. Although on the flip side they are still an acceptable, regulated financial service and lot better than some of the products on offer for people. As the rates are less competitive, its even more so important to compare and find which loans for bad credit UK are the cheapest available.

loans for bad credit uk, if manged correctly could potentially help you improve your damaged credit score. You could have an optimistic view about it, and treat it as a final chance to rebuild your credit score. If possible, its better to avoid taking extra debt, however if you don’t have family or friends who are able to financial help. You could use a bad credit loan to clear any other deficits and then manage one simple monthly repayment. You could also extend your repayment period, or even lower the amount of interest you pay back.

Remember, don’t use the financial relief that is offered as an excuse to take out more short term loans or any other credit deals. You should use this as an opportunity to be financially responsible and have a clean slate. Focus your attention on making your repayments on time, to avoid damaging your credit rating even more. If possible and your deal permits it, try to pay off more than you have too. This would mean you pay less interest in total. The sooner you pay it back the quicker you will have financial freedom.

Below are some tips to help you improve your credit rating:

  • Decrease your monthly cash burden with a debt consolidation loan – Reduce the number of bills you pay each month into a single payment. This makes it easier to avoid late payments and added fees that will only drive balances up and increase the problem. You also end up paying less than you would with several accounts. Loans can be extended to reduce payments even more. Keep in mind that the longer you take to pay, the more you will have to pay in interest. Still, you will end up paying less than you will with missed payment dates and late fees that keep building.

Good loan companies for bad credit

No upfront fees to help you find a loan *

No upfront fees to help you find a loan *

No Upfront Fee Good & Bad Credit Loan Applications

  • Secured and Personal Loans
  • Loans for Employed and Self Employed Only
  • Loans from ВЈ1,000 to ВЈ25,000*
  • Good and Bad Credit loan decision subject to your circumstances
  • Unlike Some Loan Companies we do not charge upfront Fees
  • No upfront fees to help find you a loan.
  • WARNING: LATE OR MISSED PAYMENTS – can cause you serious money problems and could seriously affect your Credit Rating. For help go toВ MONEYADVICESERVICE.ORG.UK

* Subject to lender’s requirements and approval.

For Lenders charging an interest rate of less than 100%. Representative 33.6% APR . Representative example: ВЈ2,200 borrowed for 36 months. Total amount repayable is ВЈ4,172.37 (ВЈ115.89 Monthly). Interest charged is ВЈ1,972.37, Interest Rate 29.9% (variable).

Typical 11.8% APR . Representative example: The representative APR is 10.9% (variable) so if you borrow ВЈ15000 over 10 years at a rate of 7.2% (variable) you will repay ВЈ201.27 per month & total amount payable ВЈ24,152.40.

For Lenders defined as high cost and charging an interest rate of more than 100% APR. Representative 728.9% APR . Representative example: ВЈ400 borrowed for 30 days. Total amount repayable is ВЈ459.36. Interest charged is ВЈ59.36, interest rate 180.5% (variable) .

Typical 11.8% APR . Representative example: The representative APR is 10.9% (variable) so if you borrow ВЈ15000 over 10 years at a rate of 7.2% (variable) you will repay ВЈ201.27 per month & total amount payable ВЈ24,152.40.

Loans For People With Bad Credit

Access a wide range of loans for people with bad credit to suit a wide range of people with poor credit ratings by default circumstances. Apply for your easy loans application for bad credit today.

Loans with Bad Credit No Upfront Fee

Personal bad credit rating for loans is caused by defaults & CCJs, We could help you source loans for people with bad credit – poor credit loans available from ВЈ1000 to ВЈ25,000. Apply for a bad credit loan with poor credit history.

No Upfront Fee Poor Credit Loans

Poor Credit loans may also be available, including people with poor history who do not own their home or those who have experienced credit problems. Rates may vary based on circumstances.

Applying for Loans at Easy Loans Company

We areВ available at Easy Loans to provide you with the assistance you need with applications to obtain the loan you want. We work with a limited group of lenders who consider most circumstances, this can include people with bad credit.

If you’re one of the millions of UK consumers being declined for a loan because of poor credit history, it’s most likely because of your bad credit rating. Your rating will affect your ability to be approved for a loan, especially if you have bad credit.

High street lenders will often only lend to consumers that have a good credit standing, i.e no bad credit history, therefore applying for a loan with them may not get you the finance you are looking for. If anything being declined may only worsen your credit rating.

What is your credit rating good or bad?

Your rating is a score that displays to potential lenders how likely you are to repay any monies they lend to you. Your score is one that is built up through previous borrowing, therefore if you have no previous borrowing history, your score may be lower than others.

More importantly if you have hit trouble with credit repayments in the past and may have missed loan, credit card or bill repayments then this will have had a negative impact on your credit rating. Likewise any CCJ’s or defaults have a huge impact. This may lead you to look for what’s commonly known as a bad credit loan or loans for bad credit

One of the things to remember about your credit score is that you can repair it, but in order to do so it helps to make sure that all of your future repayments are paid on time, with time this will improve your rating and give you more options when it comes to seeking finance.

Loan options for those with bad credit

Given the above, there is a market for people with bad credit seeking bad credit loans with adverse credit history. There are also lenders who specialise in lending to those with adverse credit. These loans are often at higher interest rate than that of funds offered by your high street lender, however these lenders are willing to accept more bad credit than your high street lender. Because these lenders will consider adverse credit their loans are referred to by many as poor credit loans.

It is important to remember that the higher interest rates on these types of loans often mean you repay significantly more than you borrow. In a bid to do this and still make sure the loan is affordable some lenders allow you to repay over a longer period of time. It should always be remembered that repaid debt over a longer period means that interest will accrue for longer meaning the total amount payable will be higher.

Secured and Personal Loans. Good or bad credit applications welcome.

We do not charge upfront Fees.

THE GUIDANCE AND/OR ADVICE CONTAINED WITHIN THE WEBSITE IS SUBJECT TO UK REGULATORY REGIME AND IS THEREFORE PRIMARILY TARGETED AT CUSTOMERS IN THE UK.

PLEASE THINK CAREFULLY BEFORE SECURING LOANS AND OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT. SECURITY MAYBE REQUIRED.

ALL LOANS ARE SUBJECT TO AN ASSESSMENT AND CREDIT APPROVAL.

ALL RATES VARY SUBJECT TO LOAN AMOUNT, LOAN TYPE AND STATUS.

REPAYING YOUR DEBT OVER A LONGER PERIOD OF TIME MAY INCREASE THE AMOUNT YOU PAY.

EASY LOANS COMPANY ACT AS A BROKER PROCESSING THE INFORMATION THAT YOU PROVIDE TO US AND PASS THIS ON TO OUR LIMITED GROUP OF THIRD PARTY LENDERS AND BROKERS.

WE DO NOT CHARGE A BORROWERS FEE FOR THE USE OF OUR BROKERAGE SERVICES, HOWEVER WE DO RECEIVE COMMISSION FROM LENDERS (OR OTHER BROKERS) WHEN BORROWERS SIGN INTO A CREDIT AGREEMENT FOLLOWING AN INTRODUCTION THROUGH THE EASY LOANS COMPANY WEBSITE.

IN THE CASE OF SECURED LOANS THE FEE RECEIVED MAY BE UP TO 7%. TELEPHONE CALLS FROM UK LAND-LINES ARE USUALLY FREE, HOWEVER CHARGES VARY FROM MOBILE PHONES SO PLEASE CHECK WITH YOUR NETWORK PROVIDER. CALLS MAY BE RECORDED FOR TRAINING AND MONITORING PURPOSES.

AS OPERATOR OF THIS WEBSITE, EASY LOANS COMPANY IS NOT AN AGENT OR REPRESENTATIVE OF CONSUMERS OR ANY LENDERS AND THEREFORE DOES NOT ENDORSE THE SERVICES OFFERED BY SPECIFIC LENDERS.

THE GUIDANCE AND/OR ADVICE CONTAINED WITHIN THE WEBSITE IS SUBJECT TO UK REGULATORY REGIME AND IS THEREFORE PRIMARILY TARGETED AT CUSTOMERS IN THE UK. FOR MORE INFORMATION ON HOW WE HANDLE YOUR DATA SEE OUR PRIVACY POLICY (FOR FURTHER DETAILS ABOUT EASY LOANS COMPANY SEE OUR TERMS AND CONDITIONS)

Best Bad Credit Loans for 2018

Having bad credit doesn’t mean you can’t get a loan. It just means you’ll need to be a bit more selective and take the time to find the right lender for you. When it comes to loans for bad credit, you want a lender who will look at more than just your credit score, but is also transparent about rates and fees, as well as flexible on terms.

Don’t automatically assume you’re limited to a payday lender or title loan. Finding loans for people with bad credit also means avoiding predatory lenders and common scams that can keep you trapped in a cycle of debt. Fortunately, we did the research for you and found a number of companies that specialize in lending to customers who may have poor credit. Check out our list and explore your options using our compare tool below!

Use our loan comparison tool to view multiple loan options from $500 to $35,000+ with no obligation.

Simply enter you zip code, estimated credit rating, monthly income, and the loan amount you need to instantly view loan companies available to accept your application online right now.

The Best Loans for People with Bad Credit

One note before going forward: Bad credit means different things to different lenders. Some lenders won’t consider your application if you have a credit score below a certain number, while others will make it a smaller part of their lending decisions. For the purposes of this article, I focus on lenders who will make loans to customers with credit scores under 640. This score is considered “average” by most lenders, but lending criteria tightens considerably below this mark.

The Best Bad Credit Loan Options

Best for Really Bad Credit: Bad Credit Loans

When it comes to getting a loan with really, really bad credit, your options are limited. The loans that do exist are often of the “payday” variety: low-dollar, short-term, and high-interest loans. While a payday loan can provide much-needed cash in an emergency, high interest and fees can make it difficult to repay the loan in the short time period typically provided.

BadCreditLoans.com is not a lender itself, and instead attempts to connect borrowers with poor credit to a network of willing lenders. To apply online, you must be 18 years old, have a valid phone number and email address, provide proof of citizenship or legal residency, hold a checking account in your name, and have a regular income, whether from full-time or self employment, disability, or Social Security.

After putting in a request, you’ll wait to receive offers from their network of lenders. Keep in mind, though, that depending on your financial situation, you may not receive any offers. If you do, typical loan amounts range from $500 to $5,000 with an APR of anywhere from 5.99% to 35.99%, according to their website. The repayment terms generally range from 3 to 36 months. So, for instance, if you were to take out a $3,000 loan with a 35.99% interest rate and 24-month term, you can expect to pay $177 a month. Your principal would be around $3,173 with another $1,252 in interest — which isn’t ideal, but if you need cash fast with poor credit it is an option.

So, we’ll reiterate: Before accepting an unsavory loan offer, be sure that you have no other options, and that you can definitely pay back the entire loan when it’s due.

  • Even borrowers with truly bad credit may qualify for a loan of up to $1,000. (Those with better credit scores can apply for larger loans.)
  • Bad Credit Loans solicits offers on your behalf from its network of lenders so you can choose the best terms.
  • It’s free to apply, there’s no obligation to accept any offers, and there’s typically no inquiry on your credit report.
  • Most applicants can be pre-approved in as little as five minutes, according to the company, and you can receive your funds via direct deposit in as little as one day.
  • There’s no guarantee you’ll receive an offer from one of their lenders. Fortunately, it’s free to put in a request.
  • Interest rates are high — up to 35.99% — and will skew to the higher end the worse your credit is.
  • Bad-credit loans are generally limited to $1,000 or less.
  • Beware of renewing your loan and getting trapped in a cycle of debt.

Best Secured Bad Credit Loans: OneMain

OneMain specializes in personal loans, but what makes them great for borrowers with poor credit is that they offer secured and unsecured loans. Generally, if your credit falls within the poor or bad range, you’ll need to either decrease the loan amount or look for a secured loan. Getting a secured loan means putting something up for collateral, such as a car, boat, truck, motorcycle, or more.

Once approved, loans for people with bad credit usually range from $1,500 to $10,000 (however, they do offer loans up to $25,000) with APR between 17.59% and 35.99%. The term length varies between 24, 36, 38, and 60 months. Another perk of OneMain Financial is that while you can do everything online, they also have more than 1,600 branches you can visit in person.

  • An option to consider for borrowers who have credit scores under 600.
  • Offers both secured and unsecured loans.
  • Has more than 1,600 branches.
  • In business for over 95 year with an A+ rating from the Better Business Bureau.
  • Website is vague about potential APRs and loan amounts.
  • Branches only available in 44 states.

Best Peer-to-Peer Loans: Peerform

For anyone whose credit score isn’t good, but not severe, PeerForm is a peer-to-peer lender that you may want to consider. As part of their process, any application with a credit score below 600 is declined (so if you have some time, it may be worth working to raise your credit score). Because of their credit score restrictions, they’re able to offer loans ranging from $4,000 to $25,000 to potential borrowers with APRs from 5.99% to 29.99%.

One of the downsides to using Peerform, though, is that it can take up to two weeks to receive funding. So, if you need cash fast, this may not be the best platform for you. Additionally, there are fees associated with the loans, such as a 1-5% origination fee, and loans are only available to residents of 42 states.

  • Low advertised APRs (5.99% to 29.99%) for borrowers
  • High borrowing limit up to $25,000.
  • Website is very clear about potential APRs, loan amounts, and fees.
  • Received an A rating from the Better Business Bureau
  • Requires better credit score than some other lenders (600+).
  • Does not offer secured loans.
  • Loans not immediately funded.
  • Several fees may apply, including an origination fee up to 5%.

Avant focuses on loans for “in between” borrowers — most customers who receive loans have a credit score between 600 and 700. Unlike many online loan startups, it is not a peer-to-peer lender that relies on individual investors to fund loans, instead Avant offers access to loans through its lending platform. That’s good news if you need your funds quickly — you may even have your loan the next business day after you apply.

Loans from Avant range from $2,000 to $35,000 with APRs between 9.95% and 35.99% for terms from 24 to 60 months. Their loans come with a 4.75% administration fee so that’s something to keep in mind before borrowing. Avant branded credit products are issued by WebBank, member FDIC.

  • APRs range from 9.95% – 35.99% for borrowers.
  • Available in 46 states and the District of Columbia.
  • Loans funded in as soon as one business day, unlike peer-to-peer lenders.
  • High loan ranges of $2,000 to $35,000.
  • Choose payment terms as short as two years or as long as five years.
  • A+ rating from the Better Business Bureau.
  • Does not offer secured loans.
  • If your credit score is under 580, you’re out of luck.
  • Not available in Colorado, Iowa, Vermont, or West Virginia

The good thing about NetCredit is they look beyond just your credit score (sometimes accepting applications with scores as low as 550); however, that does come with a cost. Their loans range from $1,000 to $10,000 with APRs starting around 34% — and in some cases ranging as high as 155%. If your offer comes with an extremely high (some would say borderline predatory) APR, look into other options, such as a secured loan or using a cosigner.

PersonalLoans.com allows multiple lenders to solicit your business after you fill out just one application. APRs are competitive and there are several types of loans, which top out at a generous $35,000. Of course, this is a referral site, so your terms, fees, and APRs will vary depending on the lenders who contact you. This kind of information can be easier to determine with a direct lender.

Best Loans for Bad Credit: Summed Up

How Can I Fix My Bad Credit to Get a Better Loan?

Because even the most sympathetic lender won’t give you a great APR if you have bad credit, we recommend making every effort to give your bad credit a boost before resorting to a loan. It’s not a quick process, but the effort will be more than worth it in the long run. Here are a few of your first steps to better credit:

  • Get to know your credit report. Is your credit as bad as you think it is? Have you actually checked your credit report lately? Surprisingly, the answers to those questions are “no” and “no” for many people. If you haven’t already done so, pull a free credit report. This will also let you verify that there aren’t any errors or fraudulent activity keeping your credit in the dumps. If there are, you can file a dispute. Check out our guides on the Best Credit Report Site and the Best Free Credit Report Site if you need recommendations.
  • Make more payments, and do it on time. It’s probably pretty obvious that you need to pay your bills on time to raise your credit score. (If you’re having trouble, set up automatic payments that can save you from forgetting.) Less obvious might be that making smaller payments more frequently can help, too, because it can show you’re using less of your available credit — a good thing for your credit score — when credit bureaus look at your data.
  • Don’t use most of your available credit, even if you pay it off on time. Your credit utilization ratio — your outstanding balance vs. your total credit limit — should be no more than 30%, but 10% or less is ideal, experts say. That means that even if you have a $10,000 limit on your card, charging more than $3,000 on it can negatively impact your credit score. This holds true whether or not you pay off your balance every month.
  • Resist the urge to close accounts. Got a credit card you don’t use? It’s probably tempting to close your account, but it’s best to leave it open. Why? Again, having credit that you actually don’t use is good for your score. Keep the account active by using it to pay a small bill from time to time. Having the same account open for several years also lengthens your credit history, which has a positive effect on your score.
  • Take advantage of credit-building tools: Secured credit cards, for example, provide a safe way to make monthly payments. If you need to take out a loan, ask someone with good credit that you trust to become a cosigner. Again, making payments on time, every time, will help rebuild your credit.

What kind of loans can you get with bad credit?

Loans for bad credit range from conventional personal, auto, and home loans with less-favorable terms to short-term, no-credit-check loans like payday and auto title loans. All have pros and cons, but some are a much wiser choice than others — and some should be avoided entirely.

Personal loans for bad credit, available through brick-and-mortar banks, credit unions, and online lenders including those profiled above, are loans made for any purpose. The amount the lender will be willing to part with varies widely based on your credit and whether the loan is secured (backed with collateral that your lender can seize if you cannot pay back the loan) or unsecured (no collateral required). If you want to do business locally, credit unions can be a particularly good choice because they might be more flexible with their lending criteria than bigger banks – especially if you’re a longtime customer.

Experts warn against borrowing from lenders who don’t thoroughly check your credit history, repayment ability, and other financial circumstances. You should also be wary of expensive insurance add-ons that ensure the loan will be paid back if you die or become disabled.

If you have very bad credit, secured loans can be a viable option — it will be easier to qualify and you’ll receive more favorable terms, such as a higher loan amount and a lower APR. However, you must be absolutely sure you can repay your loan on time or you could lose whatever collateral you’ve agreed to use — typically, your home, car, or savings account.

Another option is getting a co-signer with better credit to sign for a loan with you. The lender will then use the co-signer’s credit to determine the terms. Of course, doing so puts the co-signer at huge risk. He or she is equally responsible for payments if you suddenly can’t afford them. If you think there’s any chance you will default, save your friend or family member the trouble of becoming a co-signer or you’ll risk their finances — and your relationship — too.

Use our loan comparison tool to view multiple loan options from $500 to $35,000+ with no obligation.

Simply enter you zip code, estimated credit rating, monthly income, and the loan amount you need to instantly view loan companies available to accept your application online right now.

Can you get a mortgage with bad credit?

Even after the subprime mortgage crisis, it’s still possible to get a mortgage with bad credit. Of course, your choices will be more limited. Experts say it’s wise to work with mortgage brokers who can help you evaluate your options. One of them is an adjustable-rate mortgage, which can be easier to qualify for than conventional fixed-rate loans.

One of the best places to look is the Federal Housing Administration’s loan program. Because the government backs these loans, lenders can still offer competitive interest rates while accommodating borrowers with credit scores of 580 and above. You’ll need a down payment of at least 3.5% — far less than the typical 20% required for conventional mortgages. The major downside is that you’ll pay fairly high mortgage insurance payments over the life of your loan.

Experts say one related kind of loan to avoid is a mobile-home loan. High interest rates are very common, and even if you can get one with terms comparable to those of a regular subprime mortgage, mobile homes depreciate so quickly that refinancing is difficult.

Bad credit auto loans are simply loans for car buyers with bad credit that have less favorable terms — generally a higher APR and a lower loan amount — than auto loans made to buyers with good credit.

There are reputable lenders who focus on bad credit auto loans that I detail in a separate post on the Best Bad Credit Auto Loans. However, beware: Unscrupulous dealers may take advantage of bad-credit customers with shady tactics including leading you to believe your credit is even worse than it is or requiring you to buy add-ons in order to get financing. In general, you also shouldn’t pay interest rates in the high double digits or sign for a loan with terms longer than five years.

Payday loans might be the most ubiquitous loan for people with bad credit. Unfortunately, they’re also almost always a bad deal for you.

Payday loans are typically small, usually $500 or less, and made for a short period of just a week or two before repayment is required on your next payday. They’re easy to get as long as you provide proof of income. The lender usually requires you to write a check for the loan amount plus interest that can be used for repayment. You may even give the payday lender electronic access to your account.

The main problem with payday loans is the astronomical finance charges. According to the Consumer Finance Protection Bureau (CFPB), you may pay $10 to $30 to borrow $100. If you pay $15 to borrow $100 for two weeks, that’s an APR of a whopping 400%. Many lenders allow you to pay only the interest and roll over the loan. This tempting scenario traps many low-income borrowers in a cycle of debt since they can only afford to pay back the interest. In fact, the CFPB has found that more than a third of borrowers take out between 11 and 19 payday loans over the course of a year. A quarter owe money to payday lenders for more than 80% of the year.

Some states have cracked down on payday lenders by capping interest rates, but 32 still allow the practice unabated. Bottom line? You’re best off avoiding payday loans.

Do not confuse auto loans that are meant for car buyers with auto title loans. Auto title loans require you to use your car as collateral in order to get a loan that can be used for any purpose. The amount of these loans varies, but it’s usually for much less than your car is actually worth. You usually won’t need a credit check to get an auto title loan.

According to the FTC, auto title loans typically last for 15 or 30 days and have a triple-digit APR. These kinds of loans can easily trap borrowers who can’t afford to repay the loan in a cycle of debt as they continually renew the loan with interest-only payments. The CRL and Consumer Federation of America found that a borrower of a $951 auto title loan pays more than $2,000 in interest on a loan he or she renews eight times.

Many lawmakers have cracked down on auto title loans, which are now illegal in 23 states. If auto title loans are still legal in your state, beware. Like payday loans, they simply aren’t a smart choice for those with bad credit.

What is collateral, and do I need it?

Collateral is an asset a borrower owns, such as a house, car, or personal valuables, that is put up to reassure payment of a loan. If a borrower fails to pay their loan, the lender is allowed to repossess the collateral and sell it in order to make their money back.

There are two types of loans available to borrowers — secured and unsecured.

Secured is named because each loan is secured by a borrower’s collateral. Usually the item put up for collateral is specified when the loan begins. Other types of collateral are required by the type of loan. (Mortgages, for example, are always secured using the borrower’s home as collateral.)

From a lender’s perspective, loans secured by collateral are less risky. Borrowers are more likely to pay if their personal property is at stake. As a result, secured loans tend to come with lower interest rates. And borrowers are usually able to take out higher amounts of money with a secured loan.

Unsecured loans do not require any collateral. Borrowers are essentially promising lenders that they’ll be able to repay their loan in full. Lenders tend to see unsecured loans as riskier investments, so unsecured loans tend to come with higher interest rates.

Can I take out an unsecured loan with bad credit?

It is possible to take out an unsecured loan with bad credit, although your interest rates may be considerably higher than with a secured loan.

You should only consider a secured loan if you’re positive in your ability to repay. You don’t want to risk your car or your home for the sake of a loan.

Can I get a loan if I’m unemployed?

You can get certain types of loans even if you’re unemployed, but we strongly advise against considering them. Borrowing money while unemployed carries risks, and you’d probably be better off taking proactive steps to improve your credit score and generally shape up your financial situation.

There are generally three types of loans available to unemployed borrowers:

  • Unsecured loans with high interest rates
  • Secured loans with high interest rates
  • Payday loans

None of the above are good options. If you borrow without the ability to repay, you’re putting both your financial and professional future at risk. Some organizations require a credit check as part of their hiring process. A bad or poor credit score may prevent you from getting a job.

If you’re unemployed with existing debts, you still have a few steps you can take:

  • Examine and prioritize your debts
  • Negotiate with your creditors
  • See if you qualify for unemployment insurance
  • Consider freelance or part-time work

If you’re newly unemployed, you might qualify for unemployment insurance. Click here to check out unemployment benefits by state. For more information and advice on finding employment, you can check out our guide here.

Can I get a bad credit loan with no checking account?

Many lenders require borrowers to have at least a checking account in order to receive funds. Both installment and lump-sum lenders prefer to deposit funds directly into a checking account.

If you have bad credit and don’t have a checking account, it might be tempting to turn to alternative loans — payday lenders or credit card advances. But even now, you have other alternatives that can help you receive a loan and build credit.

Joining a credit union with bad credit

Larger banks usually examine your credit history closely when you’re applying for a new account. If your credit score needs work, it’s less likely that you’ll be able to open an account. But instead of just considering your financial history, credit unions will consider your overall financial situation.

Credit unions are nonprofits, offering their members lower borrower rates and annual fees. But to join a credit union, you often have to be a member of a specific group or live in a specific area. Luckily, a number of credit unions have more relaxed membership requirements. To join, you may just have to donate $5 -$20 to a charity with a relationship to the credit union.

Getting a second chance checking account with bad credit

Second chance checking accounts are like secured credit cards — they give those with bad credit another shot at traditional banking.

Many second chance banking accounts come with required monthly fees as collateral. Second chance accounts often restrict an account holder’s ability to overdraft. You won’t be able to take out more than you have.

Second chance accounts give account holders the opportunity to pay bills and write checks from their account. Holders can access debit cards that pull directly from their account.

Second chance accounts can be transitioned into traditional accounts after 6 months to a year as a result of good financial practices.

Spotting Bad Credit Loan Scams

Bad credit puts you in a vulnerable position when you’re searching for a loan. But just because your terms won’t be as favorable as they would be with excellent credit doesn’t mean you should accept any old offer. Keep your eyes peeled for these red flags while searching for the best bad credit loans:

  • Guarantees. Legitimate lenders won’t tell you that you can get a loan without knowing your income, credit score, and other personal information. Any lender who guarantees that you’ll qualify before evaluating your information is probably bad news.
  • Upfront fees. It’s against the law for lenders to charge you simply for filling out an application.
  • Lots of uninitiated contact. Be careful if you’re getting constant mailings or calls from a certain company. Legitimate lenders don’t need to hound potential customers.
  • Fishy-sounding names. Some unscrupulous companies will closely copy the names of legitimate lenders to profit from their better reputations. Make sure you’re really doing business with the right company.
  • Pushy requests for personal information. You should only provide personal information to a company you trust once you know what kind of loan you’re applying for. Be particularly cautious about giving out information over the phone, especially if you didn’t initiate the call.
  • Scare tactics. It’s common to shop around for the best deal and wise to take time to evaluate how much you can safely borrow. Your lender shouldn’t pressure you to make a deal before you’ve considered your options.

Above all else, take a few minutes to check up on a lender yourself. Look at online reviews and the company’s Better Business Bureau profile. Be suspicious of consistently positive or negative reviews — the truth is probably somewhere in between. Double-check a company’s address, too. Being proactive at the beginning of your search can save you a lot of trouble down the road.

How I Picked the Best Bad Credit Loans

Interest rates are a big consideration when you’re searching for a loan with bad credit, but there are other factors to consider. Here are the criteria I focused on in my search for the best loans for bad credit:

  • Higher loan limits: While it’s common for some lenders to cap loans for bad credit at low amounts such as $1,000, the best lenders allow larger loans for those who need them.
  • Reasonable APRs: Unfortunately, you’re not going to land a low interest rate with a bad credit score. Exorbitant APRs are out there, especially if you have very bad credit and are trying to get a loan without collateral. The best lenders still keep their interest rates competitive relative to your credit score.
  • Reasonable fees: Common fees include charges for loan originations, late payments, prepayments, and unsuccessful payments. Some lenders charge most or all of these; others don’t charge any fees at all. The best lenders keep fees to a minimum and charge a reasonable amount for those they do require.
  • Flexible terms: You may want to pay off a loan as quickly as possible to save on interest, or you might want a longer term to keep your payments low. The best lenders don’t lock you into one or two predetermined terms, such as three or five years.
  • Easy-to-find specifics: The best lenders understand that potential borrowers want to know potential APRs, loan amounts, terms, and fees before they start an application and include that information on easy-to-find pages on their websites.
  • Extensive reach: Different state regulations mean lenders may operate only in certain states. The best lenders have a wider reach.
  • Reputation: I considered each lender’s online reviews and status with the Better Business Bureau. BBB accreditation isn’t a necessity, especially for newer companies, but it is a plus. I also considered how long the company has been in business. I gave the least weight to individual reviews, as it’s common for prospective borrowers to give negative reviews for reasons such as being denied a loan.

Finding the Best Loan When You Have Bad Credit

Be sure to evaluate a range of choices when you’re searching for the best bad credit loans. You’ll want to find a lender who knows your credit score is just one part of a bigger picture, and you’ll need to make sure you understand what kind of loan you need, what kinds of loans to avoid, and how to avoid scams. You’ll want to consider all of your options to find the best loans for bad credit that work well with your unique situation. A great place to start is to compare multiple loan companies using our free loan search below.

Use our loan comparison tool to view multiple loan options from $500 to $35,000+ with no obligation.

Simply enter you zip code, estimated credit rating, monthly income, and the loan amount you need to instantly view loan companies available to accept your application online right now.

Best Personal Loan Companies for Bad Credit

Probably the most difficult and time-consuming task striving to get a loan is to find a dependable lender ready to invest without any concern to bad credit history.

However, the challenge is real, and there are numerous top-reliable and best personal loan companies being transparent about fees and rates, flexible in policies and ready to view you rather than your poor credit score.

Following these tips you will eliminate the risk of cooperation with predatory lenders and scams that can put you into the debtor’s prison.

Although a personal loan cannot cover all your expenses, it can be of great help in emergency cases and a range of routine issues.

Top 3 Most Popular Lending Companies for Bad Credit

It is not a secret that the credit score you have influences a few important settings, like bank’s perception of your paying ability, interest rate, etc.,

though getting a loan with a high interest rate is definitely better than no credit at all.

However, it is still possible to find a reliable lender offering personal loans on rather preferable conditions.

Among appreciated and reputable personal loan companies are the following:

Avant with average APRs being 9.95% for borrowers with bad credit. The option is available in more than 40 states, and its limit is $35,000.

Personal loans are instantly funded without extra originating fees. The loan can be taken up to 4 years. However, the company is new on the market and it does not have secured loans.

Peerform is a beneficial lending company offering low APRs ranging from 7.12 to 28.09%. Additionally, the company has an attractive borrowing limit of $25,000. Though, being a new service, it is not approved, its loans are not instantly funded and multiple fees may be applied.

SpringleafFinancial, on the contrast to the previous lenders, offers two types of loans: unsecured and secured. The company works with bad credit borrowers with the score less than 600. Besides, the company is time-tested and accredited and has over 800 branches. Despite many branches, the loan is available in 41 states only, offering a rather costly APR rate.

Selecting from multiple best personal loan companies, it is inevitable to consider a few points:

  • Loan limits offered by the lender;
  • Moderate APRs and extra fees;
  • Flexible terms and conditions;
  • Accessibility in your state, etc.

These specifications will definitely help you make the right choice and opt for the company offering the most reliable and convenient bad credit loan suiting your needs.

Good loan companies for bad credit

Good loan companies for bad credit loans are always authorised and regulated by the Financial Conduct Authority (FCA).

If you have a poor credit history it can be difficult to find a lender willing to give you a loan . Many high street banks will not lend to those with bad credit.

There are loan providers out there who offer cash loans to those with a poor credit history .

Many short -term lenders and payday lenders will provide loans to people with bad credit.

CashLady takes a look at some reputable loan providers for bad credit customers who are looking for cash loans .

Where does the information about my credit history come from?

When a loan provider is looking at giving you a cash loan they will take into account different information to give you a credit score including:

  • Any information the lender already has about you, such as a previous loan you have with them
  • Information you include on your application form for a short term or payday loan
  • Your credit report from a credit reference agency

This score will then tell them how much they can lend you and what your loan ’s interest rate will be.

How can I check my credit score ?

There are three credit agencies – Equifax , Experian and CallCredit. Different loan providers use different agencies.

You can use CheckMyFile to check Equifax and CallCredit and Experian to check Experian .

Will I have to undergo credit approval to get a short term loan ?

Most short term lenders and payday lenders will require some kind of credit approval in order to approve you for your loan . But it is a myth that you cannot get credit if you have a poor credit history .

There are reputable bad credit lenders out there who could lend you money.

Contrary to popular belief, you do not have one credit score . Each lender will look at your details and then score you using their own calculations. This means that you may be more likely to get a loan with some loan providers over other loan providers.

What is the difference between payday lenders and short-term lenders ?

Payday lenders offer payday loans . These type of loans are used for people who need the money to ‘bridge the gap’ between one payday and the next. Strictly speaking, a payday loan should last no longer than one month.

Short-term lenders offer short-term loans . Short-term loans usually last from three months to six months.

Many loan providers are payday lenders and short-term lenders . Because they choose to offer their customers both types of loans .

Good loan companies for bad credit

Wonga offers short-term loans and payday loans to its customers . Also, Wonga ’s maximum loan term is 3 months.

Wonga offers payday loans of up to £400 with a maximum term of 35 days. Their 3 months ‘Flexi loan ’ product goes up to a maximum of £500. Existing Wonga customers can borrow up to £1,500 through their ‘Flexi loan ’ product.

To apply for a loan with Wonga you must be:

  • over 18 years old
  • a bank account and debit card holder
  • a mobile phone owner
  • living in the UK.

Wonga are FCA regulated and authorised.

Wageday Advance was one of the UK’s first payday lenders.

Furthermore, Wageday customers can borrow from £80 upwards. If you are a new Wageday Advance customer you can borrow up to £500. Existing Wageday Advance customers are able to borrow a maximum of £1,000.

Strictly speaking, Wageday Advance is a short term lender . They offer you the ability to choose a loan term of between 1 and 6 months.

If you want to apply for a loan with Wageday Advance you must be:

  • in permanent employment
  • at least 18 years old
  • a UK resident
  • have a bank account and a debit card .

Wageday Advance is FCA regulated and authorised.

Short-term lenders , Lending Stream, allow new customers to borrow up to £1,500 for emergency expenses such as car repairs.

They give their customers 6 months to pay back their loan .

In order to apply for a cash loan with Lending Stream you must:

  • live as a UK resident
  • be at least 18 years old
  • be in regular employment
  • have a minimum monthly income of £400 and
  • have a debit card and bank account .

Lending stream is authorised by the FCA .

If you are a new Quick Quid customer you can borrow up to £1,000. If you are an existing customer , you

can borrow up to £1,500.

You can take out a loan for a period of 1, 2 or 3 months.

If you want to apply for a loan with Quick Quid, you will need to:

  • have stable employment
  • be a UK resident
  • be aged 18 or over
  • have a valid UK bank account .

Quick Quid is FCA regulated.

Sunny offers payday loans , short -term loans and larger loans for longer terms.

Short-term loans range from between £100 and £950. These are usually offered for a 6-month term and are known as ‘sunny now’ loans .

Longer term loans range from between £1,000 and £2,500. If you are taking out a longer term loan you can pay it back over 14 months. These are known as ‘sunny plus’ loans .

Sunny’s eligibility criteria say that you must:

  • be at least 18 years old
  • be a UK resident
  • have a UK bank account and debit card
  • have a net income of £500 or more per month
  • own a mobile phone

Sunny is FCA regulated.

Satsuma offers their customers the option to pay back their loans weekly or monthly.

They lend up to £1,000 for new customers . Existing customers can borrow up to double that amount. The minimum loan amount they offer is £100.

To apply for a Satsuma loan you must:

  • be aged between 18 and 74
  • be a UK resident
  • not be bankrupt
  • have an email address and mobile number
  • have a bank account and debit card

Satsuma is FCA regulated.

As of November 2017 PaydayUK loans are referring customers to The Money Shop high street shops. This means their loans may not be available online anymore. PaydayUK used to be one of the largest and longest established UK payday lenders.

Should I get a bad credit loan?

It is important to make sure you look at all the options before you take out a bad credit loan. This is because the interest can be higher than other forms of personal loan meaning that you could end up paying more.

You must also be comfortable that you can make the repayments.

I have been accepted for a short term loan but it has a higher APR than I originally saw advertised

Loan providers have to give at least 51% of their customers the APR that they advertised.

You are not guaranteed to get the advertised APR when you apply for a loan .

Having a poor credit history is one of the factors that loan providers take into account when deciding on your APR .

Why do I need to pick loan providers that are FCA regulated?

The FCA regulates payday lenders and short-term loan lenders operating in the UK.

By using a loan provider that is FCA regulated you will know that they are adhering to the FCA ’s restrictions. These include caps on payday lending charges and rollover restrictions.

If you want to check if a loan provider is FCA regulated, you can search for them on the FCA register.

Can I apply to different loan providers on one internet site?

Yes. In fact, this is a good idea as it will allow you to apply to a panel of lenders rather than just one. This could increase your chance of being approved for a loan .

CashLady only uses a trusted panel of loan providers who are FCA regulated and authorised.

When you apply with CashLady you will get a selection of responses. This saves you time by potentially reducing the need to ‘shop around’.

Just because you have a poor credit history it does not mean that you cannot get a loan .

There are many good loan companies for bad credit in the marketplace.

This article just looks at a few of them.

They all offer varying loan amounts and terms.

The APR that loan providers advertise may not be the APR that you get. Lenders only have to give the advertised APR to 51% of their customers.

All loans are subject to credit approval. This means loan providers will check your credit history . As well as, give you a credit score that they use to make their decision about whether to approve you for a loan .

Not all payday lenders use the same scoring technique. This means that you may be more likely to get accepted with one loan provider over another.

Having a bad credit rating does not necessarily mean that you will never be able to get credit again. However, it is important to think about why you need the loan and whether you will be able to afford to pay it back.

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