Bad credit loans so what does loans for bad credit actually mean?

Bad credit loans don’t technically exist in the way we understand them. Loans for bad credit scores exist, if they didn’t, payday loans would not be designed as they are. Someone that believes they have very bad credit might differ to the next person. The odd blip on your credit file won’t change the world, it probably won’t stop you getting a ‘bad credit loan’ either. The best way to gauge your finances is probably a credit score and self assessment of your own situation. Be honest with yourself…do you look after yourself financially? One of the biggest problems we face in the UK is poor financial control. It’s never too late to take control however hard the road back to stability is. Many do it everyday and reading shows that some take baby steps with their first branch of credit, normally in the form of high cost short-term credit.

Where can I find loans for people with bad credit?
Loans: bad credit, unsecured, and quick. Do they exist?
Are there loans for very bad credit from direct lenders with guaranteed approval?
What are the cheapest and best loans for very bad credit scores in the UK?
Which direct lenders offer very fastest payout in the UK with instant decisions?
If you’re searching for loans with bad credit perhaps a better option would be to look at budgeting?
What are the alternatives and options to loans for really bad credit online when borrowing money?

Where can I find loans for people with bad credit?

Generally speaking loans for people with bad credit are found in the form of payday or short-term loans. The reasons being is pretty simple. This type of loan is higher interest and carries higher risk. This is unlike traditional lenders like banks who will be far less interested in lending unless you have an excellent credit history. For some people with the odd blip on their credit file, a payday loan is a line of credit that is generally readily available. Indeed, if you look online, acceptance rates for this type of finance is over 90% according to many broker and lender websites. Given they must be entirely transparent in their disclosure of information (it’s a rule of being authorised by the Financial Conduct Authority) one would expect the acceptance rates to be reasonably accurate.

Loans: bad credit, unsecured, and quick. Do they exist?

In short yes they do(quick loans that is), but only in the right circumstances. Sounds ambiguous doesn’t it? Well not really. Much of what this means is down to personal perception of finances. While some people believe they have excellent credit ratings, others believe theirs is ‘bad’. That isn’t a number, nor a financial circumstance. All credit lines in the UK are approved based on a close inspection of someones credit score and personal financial situation. You simply won’t get a loan outside of these channels that is both legal and fair. Why you ask? Quite simply, the Financial Conduct Authority are setup to protect the consumer and ensure brokers and lenders alike, follow careful and clear guidelines to ensure the financial products that reach consumers are fair and proper. If you believe you received a loan without a credit check you should report this to help protect other consumers and yourself. One such way is directly to the government who have a task force in place to catch illegal loan sharking. Here is the best place to get started with that: https://www.gov.uk/report-loan-shark. This is an anonymous service so you don’t have to expose yourself.

Are there loans for very bad credit from direct lenders with guaranteed approval?

You can’t get guaranteed loans. As we previously touched on, loans without careful checking of your financial situation would not be responsible lending and it is the responsibility of lenders to ensure that your financial circumstances are carefully looked at, even more so if you believe you have bad credit. Though bad credit scores would probably result in not getting a loan, the best thing to do is put your details to a panel of lenders and allow them to make the decision on finance for you.

One should be very weary of the interest rates though. Given you are not perfect credit ratings by your own understanding, it’s like that you’ll be paying interest up to 0.8% a day which is inline with the rules set by the FCA. Please note though, if the loan is over a period of 125 days then this will give interest to the total value of the loan. This means that you are unlikely to receive loan offers for much more than 6 months when the calculations are made based on the reduced loan amount each month.

What are the cheapest and best loans for very bad credit scores in the UK?

The first thing to note is that bad credit scores may result in you not being able to get a loan but it’s always worth remembering that payday loans are high acceptance and therefore how you perceive your credit score may be different to that of a professional who understands finances. Mainly though, it’s important to understand finances yourself. If you believe that you are comfortably capable of making repayments on a loan then it might not hurt to take one out. Always be aware though. These high interest rate loans are very expensive and should be cleared as quickly as possible. Very bad credit loans are not going to be favourable for any type of situation other than to solve a short term problem. That means the best loans will be ones that allow you to repay quickly. This will almost certainly result in them being the cheapest loan option too.

Which direct lenders offer very fastest payout in the UK with instant decisions?

Let’s just assume for a minute that you have searched Google for “very bad credit loans” or something along the lines of “bad credit same day payout”. It’s fair to assume that you are looking for lenders that are willing to payout quickly if they can approve the loan. Well the good news is that most of these lenders are capable of paying out very fast indeed. Most can offer you a loan in a matter minutes if the circumstances to your application are looked upon favourably. Typically a loan approval can go almost instantly in a situation whereby you are clearly able to repay the loan even with a less than perfect, or perhaps even a poor credit history.

If you’re searching for loans with bad credit perhaps a better option would be to look at budgeting?

If you’re look for loans with bad credit then why not consider budgeting your money better. I know, it’s easier said than done and you might be in a tight spot right now but did you know that most creditors will flexibly allow you to restructure your payments if you talk to them. I appreciate some debts cannot be changed, but some can. You only have to look online to see just how many people call up companies and restructure payments. The fact that you’re willing to make payment and look for solutions makes it quite clear to them that you wish to help yourself. When you want to help yourself financially, especially in the UK, you will always be warmly received by genuine creditors.

What are the alternatives and options to loans for really bad credit online when borrowing money?

Don’t just think that because you have a poor credit score that you need to accept short term credit. Why not take control of the situation and save yourself a huge amount of interest? One way you may be able to get credit is to go to a credit union. Since their fees are capped at 3% per month which equates to 42.6% APR by the FCA, it means that they are considerably cheaper than payday or short term loan providers. If you would like to learn more about credit unions then please visit this page: https://www.moneyadviceservice.org.uk/en/articles/credit-unions. But, before you rush to take out a loan. If you have bad credit the best place to start finding money is extra hours at work or another part time job. Think about this little scenario for a second.

You want to borrow £300 or perhaps £500. The interest over three months based on 0.8% a month would result in the following interest:

£300 would be about £454 roughly all done and dusted.

£500 would result in £757 or so total.

Now let’s actually look at this for a minute. Let’s assume for arguments sake we earn a tenner an hour (a lot of us do and nothing to turn our nose up at). After taxes that might be £7.50.

So to borrow £500 which will be £750 or so with interest, you might end up doing 100 hours of work to get that £500 in your pocket. Now, let’s think about that in work terms without interest. You will only need to do 66 hours or so if you don’t borrow money. Let’s look at those figures in a comparison table.

Comparing bad credit loans

Total Amount

Length borrowed for

Monthly APR example Representative 1266%

Loan total

Monthly repayment

£300 loan

3 months 24% £454 £151.34

£500 loan

3 months 24% £757 £252.34

Now while these figures are just for illustration, this is a real life scenario for some people and honestly, why do it to yourself unless you absolutely need the money? If you can hold on or re-organise your debt, you can save yourself a fortune.

I really need a quick loan online even though I have poor credit history because of an emergency. What can I do?
Is it worth doing a debt consolidation loan with bad credit?
Do some people with bad credit get loans with no guarantor?
Bad credit loans: no credit check. Is it really possible?

I really need a quick loan online even though I have poor credit history because of an emergency. What can I do?

In the event of a real emergency, you may be able to get help from the government or various charities. Let’s assume you literally do not have food on the table and are really worried about how to feed yourself and your children. Do not take out an emergency loan in a panic without seriously considering it. Instead, please take a look at the link provided by stepchange.org. They will be able to direct you to one of the various food banks through either the job centre or perhaps the police station. Emergency funding and help is available to those really in need: https://www.stepchange.org/debt-info/emergency-funding.aspx. The link provided is a great place to start if you are in a real pickle. Taking out a loan in this situation may not be in your best financial interests so always consider the repayments and implications down the road, and not just the loan itself.

Is it worth doing a debt consolidation loan with bad credit?

The simple answer is probably no. When you use short term loans to clear other loans, you can make interest spiral out of control pretty quickly. As we’ve already discussed the interest is quite expensive and therefore not ideal to use as debt consolidation. Most of the ideal behind debt consolidation is to make repayments far easier to handle. The problem we all soon realise is that debt consolidation doesn’t stop rent, council tax, utility bills, TV Licensing, and any other absolutely necessary costs from piling in. So, before taking out any debt consolidation loan for bad credit make sure that you speak to Citizens Advice first. They really are experts in this situation and the best place to start is on their help with debt page. They will be able to give you clear advice and explain the financial implications and solve debt issues with you. They’ll help you every step of the way.

Do some people with bad credit get loans with no guarantor?

If you’re looking for bad credit loans with no guarantor then the page linked will be able to give you a full rundown but the short answer is possible. Of course it’s all hypothetical but loans without guarantor generally relies on your ability to make repayments comfortably and in a timely manner with no financial stress on your part. If your case shows you can afford a loan and that you do not have any financial stress making repayment then you are likely to be considered for loans with bad credit.

Bad credit loans: no credit check. Is it really possible?

A loan with no credit check is a myth. All payday and short term loans are credit checked wether you have good or bad credit. If you want more information on payday loans with no credit check then please follow the link provided. The simple answer without breaking it down into huge detail relies on lenders following guidance on fair lending from the FCA(Financial Conduct Authority). When someone is given a loan it needs to be clearly understood that they can afford to make the repayments and that it will not cause them stress or harm. This is impossible to know without a credit check and therefore, every loan offered is credit checked in the land. That assumes it is legal lenders authorised by the FCA.

If you believe your credit is really very bad then it might be worth considering other options before applying for a loan. If you understand the risks and the costs involved and genuinely believe that the loan will be more of a help than a hinderance then please feel free to drop us an application and we will put your details to a myriad of lenders ready to look at your bad credit loan options.

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