Poor credit can be a concern if you want to borrow money. You still have options, though, even if your credit is less than perfect. About 30% of people have “poor” credit, which is defined by credit reference bureaus as a score that is at the very bottom of the range.
It is widely acknowledged, nevertheless, that even someone who fits this description might need to borrow money. Credit is something that anyone, including those at the lowest end of the scale, could profit from because prudent borrowing can really help to restore a damaged score.
Loan Pig can help you to get bad credit personal loans direct lender so that you can meet your expenses.
When attempting to secure fresh financing, a poor credit rating can seem to spell doom. Many people in the UK struggle with their credit ratings. The following are a few loans available for those with bad credit score.
- Guarantor loans
In essence, a guarantee acts as an insurance policy for a lender; if you are unable to repay the loan, the guarantor undertakes to do so on your behalf.
Lenders are less likely to rely heavily on your credit score when you have a guarantee backing your application, which makes it far simpler to be approved for a guarantor loan when your credit score is poor.
- Payday loans
This form of loan differs from quick payday loans in that the borrowed amount is frequently little and the repayment period is brief (a month).
Lenders of payday loans typically base their choice to lend on your ability to repay the loan from your available income.
- Homeowner loans
Regardless of your credit score, owning a home is another strategy to increase your chances of acquiring financing.
If you have a stable income, a sizable asset, such as a house or any apartment, and you are ready to use that item as collateral for the loan, then most lenders may overlook credit issues.
- Car finance
Because there is an asset at stake when it comes to auto financing, lenders are frequently more prepared to overlook credit issues, particularly if they are not recent.
Similar to home loans, if you default on a car loan, the lender may sell the vehicle to recoup their money.
- Doorstep loans
Many consumers who have been turned down for credit by traditional lenders discover that doorstep loans are more successful. Due to the personalised nature of this sort of financing, everything is done in person. The application is submitted online, thereafter, a local agent visits your home for discussing the loan amount and terms.
Additionally, payments are made in person, which eases pressure and makes this a friendlier kind of financing that is easier for lenders to monitor.
Lenders will always assess a borrower’s affordability. They will request documentation of your earnings and outgoings before determining whether they think you can afford your loan repayments.
If giving you more credit will place you under needless financial strain, it is not in their interest nor in yours to do so.