Warning: Late repayment can cause you serious money problems. For help, go to MoneyAdviceService.org.uk
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Which payday loan is best for people with bad credit?

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The Important Parts

Representative Example:
305.9% APR. £400 borrowed for 90 days.
Total amount repayable is £561.92 in 3 monthly instalments of £187.31.
Interest charged is £161.92, interest rate 161.9% (variable)

Note: Loanago is NOT a lender – we are a licensed broker working with the most popular direct lenders in the market to find you the most suitable short-term loan plan. Our FREE quoting service compares more than 40 lenders quickly and finds you a lender with the lowest rate that they are willing to lend to you today.

Warning: Late repayments can cause you serious money problems. For help, go to moneyadviceservice.org.uk

Loans subject to status. Over 18s only. Minimum loan amount may apply.

Rates from 4.5% APRC to 500% APRC are available – the highest rate is for customers with severe credit problems. Loans available from 1-25 years. TYPICAL 10.9% APRC variable

Lenders Facts

Loan amount
£50 - £2,000
Loan term
3 Months Only
CUSTOMERSCORES
Good
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Loan amount
£200 - £1,000
Loan term
3 - 6 Months
CUSTOMERSCORES
Excellent
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Bank Loan

Bank loans are usually taken out by businesses, but regular people also apply for a bank loan for personal expenses like buying a car or for housing purposes. If you are planning to apply for a bank loan for personal use, you need to know the ins and outs of this type of loan. Bank loans can be used for many different purposes, and choosing which type of bank loan you’ll apply for can be a little overwhelming. Bank loans vary in many ways too. They can have fixed rate, variable rate, and can be installment, secured, unsecured, and convertible. Each type of loan has unique repayment terms. Understanding those terms can make choosing the right loan easier.

Taking Out a Bank Loan

You can choose a short-term or long-term bank loan. It all depends on what you’re going to use it for. The bank sets the loan term over which the loan cost is spread. The loan repayment period can be three, five or ten years, and some could even extend up to thirty years. Most of bank loans include other fees and charges on top of the interest on the amount owed. Some banks have arrangement fees or admin charges to reserve the funds and to cover opening costs. Interest varies depending on the risk of default, which means it depends on the credit score of the borrower. Banks offer flexible terms, fees, application requirements, and interest rates. Moreover, most bank loans have lower interest rates as compared with other private and online lenders. why choose bank loan On the down side, bank loans are often hard to get because of strict requirements, particularly the credit history of the borrower. Banks lend only to businesses and individuals who can clearly repay their loans. Banks also make sure that they are able to cover losses in the event of default. Banks usually require the borrower to provide some form of security or collateral for the loan. For start-up businesses, the security often comes in the form of personal guarantees provided by the entrepreneur such as land or any valuable asset. The application process of banks loans are usually lengthy and thorough before you or your business is approved for a loan. Many paperwork are required. However, with a strong application, a solid business plan, and good referrals can surely guarantee you a bank loan. You may also get favorable loan terms. Banks in general have a lower loan cost as compared with other lenders because of their existing depositors.  Depositors serve as the bank’s retail customers, keeping a lot of money in their checking and savings accounts. The ease of access to those funds enables banks to provide loans easily. Thus, they can offer lower rates than other lenders.

Taking Out a Bank Loan for Business

Bank loans are most suitable to finance business investment in fixed assets like plant and machinery, land, and buildings. Banks loans are also useful to obtain funds for any business expansion. In fact, bank loans are commonly used as capital for a business. Banks offer short to medium or long-term finance for business. In the past, banks don’t usually cater to small and start-up businesses, but this has changed eventually. In the recent years, banks are starting to open up to small businesses because they’ve seen their strength and importance in the thriving society. However, start-ups or businesses with a record of poor profitability and cash flow could not qualify for a bank loan.

Taking Out a Bank Loan for Personal Expenditure

Searching for a personal loan can be challenging especially when you are not familiar with the types of loans out there. In the UK, there are different types of lenders offering personal loans, from banks and building societies to online lenders and credit unions. It is quite common to take out a personal loan from a bank in the UK. Taking out a personal loan from a bank is a good idea if you want to go for familiar brands. With numerous types of loans and financing options available in banks in the UK, you’ll need to know which one suits your circumstances best. Check out comparison sites of banks in the UK, so it’ll be easier for you to make a decision. Bank loans for personal purposes may be small and short-term or large amount and long-term loan, secured or unsecured. You can also get a bank loan in a form of car loan, home loan, financing through credit card, and much more. Long-term bank loans can be used to cover large expenses such as home renovations, car purchases, and housing or buy a property. If you are a homeowner and would like to get a loan from a bank, you’ll qualify for a secured loan. Banks also accept other forms of collateral to secure a loan such as a vehicle or other valuables such as land, bonds, and jewelry. With a secured loan, your promise to repay the money owed is assured by granting the bank interest on the property used as collateral of the loan. However, this is quite a gamble on your part if you default on the loan. The bank can regain the money you borrowed by seizing the property and selling it. In contrast with secured loans, an unsecured loan is dependent on your creditworthiness and financial status to repay the obligation and not on any collateral. This means that you should have a good credit history for you to be approved of a bank loan.

Key Points

Bank loans are still one of the best options for people to get a loan whether it’s for business or personal purpose. Bank loans are one of the cheapest you can find in the market especially when one has a high credit score. If you want to get a good deal, take your time to compare rates and terms of different banks. Bank loan rates, fees, and features vary. Sometimes, it is also best to work with your current bank because most banks provide benefits to those who already have a current account with them. When you compare bank loans, look at all aspects of the loan including its features. Consider not only the monthly repayment, but also the total cost of the loan, which includes the interest and other fees. Check also the loan term to make sure you won’t be paying more interest than you should. Ultimately, it is important that you have good credit score. It is the top criteria for you to qualify and get good deals when applying for a bank loan. Bank loans in general are the cheapest in the market, but they ask all their applicants to have good credit score in return. why choose bank loan    

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Applications Accepted

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Return Customers

5 most recent personal loan reviews

Review of Funding Circle

Very quick response and good safety features. Speak to real people once the application has been logged. Very simple to fill out. Would definitely recommend Funding Circle to anyone.

Review posted by Gary Craigs, Dumfries

  • Customer Service
  • Flexibility
  • Ease Of Use
  • Value For Money

Review of Savvy

Really Great Service! Thoroughly recommend! Have dealt with several loan companies & Savvy is definitely the best, easiest, professional & they do exactly what they say unlike many other financial companies that lead you up the garden path!

Review posted by Helen Stern, Sheffield

  • Customer Service
  • Flexibility
  • Ease Of Use
  • Value For Money

Review of Capital One

I have poor credit and really needed the money to pay a court fine or be up against the magistrate again. Really helped me out and I found the charges for the credit very reasonable. Would highly recommend if your in a pinch. Great customer service and went out of their way to help get the loan out the same night I applied. Started 6pm and had money in the bank before 10pm. Great service.

Review posted by Blake Harrington, Margate

  • Customer Service
  • Flexibility
  • Ease Of Use
  • Value For Money
All reviews have been sourced from Trust Pilot to ensure the authenticity of accounts.