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    Borrow between £500 to £25,000

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  • Sara J - Worcestershire

    After trying and being refused elsewhere I managed to get accepted, even with 2 CCJ's.

    The process was quick and received my loan the next day. Thank you!

  • Very Bad Credit Loans

    loans for bad credit


    Loans for bad credit may be the only option open to people with a poor credit history. If you fall into this category, then you are on the right page. It doesn’t take much for your credit score to be damaged, a few late payments on your credit card or default on your credit file can make you a non-attractive candidate for many of the mainstream lenders, even though you know you can comfortably meet the monthly payments.
    As a general rule, the interest is a lot higher with these types of loans, regardless of the agreement, this is because there is a higher risk element involved for the lender and so the interest reflects this. All direct lenders have a point where they cannot cater to borrowers. If for example someone has been made bankrupt or he or she has a high number of CCJS it is unlikely any type of loan would be available.
    Some lenders will have both types of financial products available, a mainstream lending product and a product that offers a loan for people with a poor credit history. The product will be similar, but the terms and APR will be different.

    A Closer Look At loans for bad credit

    If you have been applying for loans online but have repeatedly been turned down then it is highly likely your credit is either weak or very bad - you will come across many different options from various companies. Almost all will be a high APR. One thing you may see is claims saying stuff like guaranteed loans and no one refused. This is entirely untrue as no lender will entertain someone that is deemed unlikely to pay the money back. Most of these companies will require security if you fail the credit check.

    Advantage of poor credit loans

    The main advantage is they give people the opportunity to borrow money where otherwise it wouldn’t be possible. It may be a case that you can easily afford to replay the money but due to some missed payments a high street lender will say no. This is when adverse lenders come in handy. Using these companies can also be a good way to rebuild your credit file as long as you keep up the repayments.

    Disadvantages of bad credit lenders

    The disadvantage is that you will be paying back a lot more than a normal lender, and if you do default or fail to repay the loan you will unlikely be able to get finance with anyone, that being said if you do repay on time and in full it will help you obtain finance in the future.

    Will I qualify for a loan?

    Bad credit lenders are more lenient than their mainstream counterparts due to the higher interest as mentioned before. However, there are still certain criteria that you will need to pass before being accepted. Before applying you should be able to say yes
    to these questions.

    • Are you 18 years or older
    • Your income is over £400 P/M (benefits, salary, self-employment)
    • You are a UK resident


    Why Would I have a poor credit history

    Every adult has a credit file held by the main agencies. Every time you borrow money or obtain finance the details of how you repay what you have borrowed are recorded and go towards building up a history to help future lenders make a decision.
    Every lender has a different set of criteria and so one missed payment could exclude you from one loan company but not from another. If you enter into a finance agreement and fail to meet the payment you a late payment will be recorded on your file. The best way to avoid falling in to this is never borrow more than you can afford to pay back and if you do find yourself in difficulty there are organisations such the money advice service who can help. The other possibility is that you have never taken out credit which means lenders cannot see any history of your ability to repay agreed borrowing. Having no credit history can often stop you being accepted. To rectify this try taking out a high acceptance credit card, the limits are usually low but as long as you make the repayments on time you will start to build a good profile.


    No Credit Check Loans

    You may have been searching for this or seen this online, in reality, in order for lenders to deem if you are a match for their product they will have to perform a credit check. The only time you will not be required to have a check by a credit reference agency is if you are using someone to vouch for you. Reputable lenders will not offer loans with no credit check as these are illegal, and it is advised to stay away from any company offering a loan without a credit check.

    When you are looking for the best loans which cater for poor credit histories, it can be confusing when sifting through the hundreds of search results on Google and then visiting all the bad credit websites. It's difficult to know who to choose. If you are using a broker who sends your info to hundreds of bad credit lenders you may end up with a huge amount of emails and phone calls, so be mindful of this. Remember, never pay a fee to a broker to put you in touch with a lender as there are plenty of free options out there. At First Quality Finance, we do not charge any fees.


    No guarantor loans


    No guarantor loans are not being guaranteed by anyone and are between you and the lender...


    What Can I use the money for?

    It can be used for anything as you are borrowing the funds as an unsecured loan and most lenders do not have a stipulation to what you spend the money on.
    Many people use their personal loans the same as any other loan such as household repairs, holidays, weddings, or debt consolidation, although make sure the repayments are smaller than the collective debt you owe for this to be viable.

    If you are looking for large online loans over a long period, you may have to look elsewhere as lenders may not be willing to provide a loan to you. Loans for people that have experienced a decline in their credit rating will usually be between £100 to £5000 although they can be higher depending on the circumstances.

    At First Quality Finance, we work with all the main UK lenders to help find you the most suitable lender. All you need to do to apply is complete the form on the top right of this page and hit submit, your application will then be processed by the lender immediately and you will be contacted by one of their friendly staff to complete the process. Upon successful completion and signed agreements, your money will be deposited into your bank account.
    Repaying your loan on time can help you rebuild your credit rating.


    FAQs about Loans for bad credit


    Q Will these type of loan make my credit score worse?

    As long as you keep up the repayments the answer is no, in fact it will help to improve your profile as future lenders will see you are able to keep up payments.

    Q What will happen if I can't keep up payments.

    Ideally you should only apply for any type of loan if you can afford to meet the repayments each month. If you find yourself unable to meet the repayments it's very important you communicate with the lender so that you can come to an arrangement. Failure to do this and you will receive defaults and eventually a possible CCJ which will further effect your credit score.

    Q What does the term APR mean

    The term APR stands for annual percentage rate. This means the interest that you will pay on the loan. The smaller the APR is the smaller your repayments will be.

    Q Can I borrow money over a longer term?

    The answer is yes, taking out a poor credit loan can be up to 15 years, depending if the amount warrants it of course.

    Q How quick can I receive the money?

    The application process is very straight forward and pretty quick. Assuming everything goes well with the application you should receive the funds within 24 hours, sometime it can be the same day.