How to borrow money with bad credit?
If you’re looking to borrow money with bad credit then it may be possible but of course adds a layer of complication. While bad credit loans are a little ambiguous because perceptions of bad credit are different from person to person, it means that they may well be possible. Given many people search for payday loans with bad credit, and so many are connected with a relatively useful result, that there is some hope here. This is all done through the internet.
Given how easy it is to search and make applications online through a computer or smartphone, it’s taken over the short-term credit market as a means of borrowing money. One should always keep an eye on the terms imposed by lenders though. Remember bad credit is risky and almost certainly will not attract the same healthy interest rate and APR of someone that has a clear history and past. To give you an example of a typical short term £400 loan. Perhaps even a £1000 loan, the interest rate could be something like the comparison table below will show.
Compare borrowing money
|
Total Amount
|
Length borrowed for
|
Monthly APR example Representative 1266%
|
Loan total
|
Monthly repayment
|
£400 loan
|
3 months |
24% |
£605.66 |
£201.89 |
£1000 loan
|
6 months |
12% |
£1986.44 |
£331.07 |
Notice the interest is quite considerable. The only way to take advantage of these loans is to make sure that you repay them as quickly as possible. Make sure you setup with this mindset and don’t borrow anymore money than you absolutely need to. The Money Service Advice have a great article on what to do before borrowing money : https://www.moneyadviceservice.org.uk/en/categories/before-you-borrow. If you take a look at the link it will give you some useful insight.