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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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Cheap Loans

Whether you want to make some home improvements, make a big purchase, or even consolidate existing debts, you want to find cheap loans that fits your needs. I mean, who wouldn’t want to? But, let’s keep it real. The cheapest loans are usually offered to those with good credit history. However, you can still find cheap loans available even for those with low credit scores.

Read on to learn more about how to get cheap loans.

Although there are a number of reasons a loan may or may not be right for you, the cheapest loans are usually those with the lowest annual percentage rate or APR. The lower the APR, the cheaper the loan.

Those with good credit ratings most often have the access to cheap loans. Therefore, the best way to get cheap loans is to have or maintain a good credit rating. Keeping up with the repayments is equally important.

why choose cheap loans

Be familiar with all types of loans and see which one suits your financial situation. Consider whether you need a short-term loan or a longer-term loan, as this will affect the cost of the loan. Make sure you know how much you need and how much you can afford. See also whether a secured or guaranteed loan is more viable for you than an unsecured loan.

To get cheap loans, you could try taking some steps to improve your credit score before you apply to maximise your chances. But, if you need the money urgently, you can take out a bad credit loan.

Cheap Loans for Bad Credit

Having a poor or thin credit history doesn’t necessarily mean you can’t get a loan approval. There are lenders who specifically offer loans for bad credit. You’ll find many creditors cater to all different types of credit ratings. Even if other lenders have rejected you, you’ll take out a loan somehow with other lenders.

If lenders see that you are capable of repaying a loan as agreed on time and at the predetermined amount, they’ll offer good rates and more options. Bad credit lenders usually consider your employment status and your monthly income. If they are satisfied, you’ll be granted a loan.

Eventually, you can improve your credit by making payments steadily and being responsible. You can always improve your credit score by getting a grip of your finances. Once you get stable financially, and pay off your debts and missed bills, your credit score will increase again. Ultimately, finding the lowest APR for the amount you needed to borrow is your goal in taking out a loan.

Cheap Loans in the UK

Cheap loans come in many forms, as they would depend on your personal needs and circumstances. You’ll find many types of loans in the UK, catering to different financial needs and credit histories.

Aside from those personal loans for people with good credit, the cheapest loan types are the ones that are secured or guaranteed. Examples of these loans are home loans, car loans, and guarantor loans. Online lenders offer cheaper loans, too because they have no physical store, and this can help them cut cost.

The number of loan lenders in the UK are increasing dramatically in the past years. You can get loans from banks to private financing firms, to small and short-term lenders, online lenders, credit unions, and peer-to-peer lending companies. As a result, rate have become competitive, giving people a much wider range of choices and opportunities to take out cheap loans.

Majority of lenders provide flexible loan terms and other attractive loan features that you can take advantage. Even a bad credit or no credit history cannot stop you from getting a cheap loan. Many lenders in the UK offer loans specifically designed to cater to different credit ratings at competitive APRs and affordable repayment periods.

Cheap Loans with a Guarantor

If it’s your first time to borrow money or if you have a low credit score, a guarantor loan could help you get the loan you need. A guarantor loan is the same as an unsecured loan, but a friend or family member is co-signing your loan. He or she will be responsible for paying back your loan if you cannot make the repayments.

The guarantor must be a person with good credit, and with this, the loan is less risky for the lender. The loan will have a lower interest rate than that of an unsecured loan for bad credit. Guarantor loans may be low cost, but you should still look for the one that is cheapest to repay. The cost of the guarantor loan depends on the loan amount, the APR, and the loan term.

A guarantor loan is a huge help for you borrow the money you need if you are struggling to get an unsecured loan especially when you have a bad credit or no credit at all. This loan can also help you build or rebuild your credit status. Nonetheless, you should only borrow the amount you can afford to repay.

You can ask anyone to be your guarantor or co-signer. He or she may be a friend, family member or work colleague, but they must be of legal age, in full time employment or financially stable, someone other than your spouse or someone do not share a bank account with you. Your guarantor will have to pay back your loan if you cannot make it yourself, so it is important that he or she understands completely the responsibility and the risk involved before you apply.

Conclusion

For you to get cheap loans, know how much you want to borrow, for how long you want to repay it, and take time to compare lenders. Always consider how much you can afford to shell out each month as your loan repayment. The quicker you repay the loan, the lesser the cost. However, the larger the monthly repayments will be. Ultimately, you want to keep up with the monthly repayments and maintain, if not improve, your credit score. This way, you can get cheap loans for your future loan applications.

why choose cheap loans

 

 

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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.