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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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Small Loans

Life can be hard sometimes, and you’d find yourself financially unstable with bills and emergency expenses in front of you. It seems like your paycheck isn’t always enough. Fortunately, we can just take out small loans quickly when there’s no one else to turn to.

Loans come in many different types, and it is best that you are familiar with at least the basics. Loans are still debts with risks involved, no matter how small they are, and so it is important that you borrow responsibly.

Small loans are usually short-term, unsecured loans. Most of them are personal loans, which you can use for just about any type of expenses, may it be for emergency, buy groceries, pay off a bill or medical supplies, and urgent trips.

What are Small Loans?

Small loans are designed to cover urgent or unexpected expenses when immediate cash is the only solution. Repayment for these loans is usually set in less than a year, although some can have longer terms.

This type of credit is what’s called an unsecured loan, which means you aren’t borrowing against your asset such as your property. The borrowing amount usually starts from as little as £200, and going up to around £2,000 or higher, depending on the lender.

Small loans are growing fast in the loan world, as they are increasingly available online and on mobile phones. Lenders provide convenience and quick access to those in urgent need of cash. Small loans also bridge the gap in the market for those who simply cannot get loans through the mainstream banks because their credit scores are too low.

why choose small loans

Small Loans Options

If you suddenly find yourself with an extra expense that you feel you can’t avoid such as a home repair or a car repair, a small loan is true hero. It should save you for any personal or emergency expenses between paychecks, health care or education bills, or even an urgent trip.

Small loans are also a viable option for people who don’t get regular work and need something to tide them over until their next payday. Even those who are unemployed or suddenly lost their job, but are already working on something else can benefit from small loans

Anything you can borrower for over one to three years is a small loan. Anything payable beyond three years is already for large amounts and for long-term. Some long-term loans are even payable over three decades.

You can also find small loans that are payable in just two weeks. They’re called payday loans. They are short-term loans in which you pay back in one lump sum or when you get your next paycheck. They amount you can borrow usually depend on your income.

Another option for a small loan that is quite popular in the UK is the doorstep loan. It’s a type of financing wherein an agent comes to your home and discusses the loan with you once your application has been completed, and you have been approved in principle.

The agent will discuss to you the loan and will complete an assessment of affordability. This is to understand whether you can afford to borrow the amount you’ve applied for. An agent will also be coming to your home to collect your repayments, either weekly or bi-monthly.

Online installment loans are also popular small loans. You can have the money in your bank account quickly, sometimes even within minutes after being approved. Transaction can be completely conveniently through the internet.

Small loans are not only limited to private lending companies. They are also available in banks, peer-to-peer lending, and credit unions.

Benefits of Small Loans

Nobody wants to suffering under a loan burden for many years. Many of us would prefer small loans because they’re easy to pay off. Imagine how long-term loans involve its repayments for most part of your life.

That is why majority of people opt for small loans. Although the loan repayment duration depends on the type of loan, small loans usually provide the duration that suits your ability to repay and personal circumstances.

If you have a bad credit rating, you cannot get a regular loan from banks. However, you can definitely rely on small loans. If you qualify for a small loan, it is a chance for you to improve and rebuild your credit score.

A small loan is very useful especially when you’re in a weak financial position, having poor credit or thin credit. With a small loan, you can make repayments in a few months or weeks. It will save you from burdening your finances for so many years as such with longer duration loans. These loans are suitable for those without regular jobs and could not yet afford large, long-term credit.

With a small loan, you are actually paying less interest than on large, longer duration loans. Although lenders tend to charge higher interest rates on small loans, the total cost is lesser because the loan term is shorter. At the end of the loan term, you pay less interest as compared to longer duration loans, which although have lower interest rate.

Important Reminder

When a financial emergency hits you, a small loan can surely save you. If you want a loan that allows you to pay it back in shorter period, take out a small loan. These loans are best for emergency expenses or small and immediate financial needs, especially when you have no saving or not enough funds on hand.

However, it is imperative that you take time to look for other alternatives that would best suit your current situation. Never forget to compare the terms and rates of different types of loans, and think about whether it fits your financial concern or not.

Before accepting a loan, ask about the details of the loan and understand every aspect of it. Do not make rush decisions. You must first check all the fees, other charges, and the features of the loan.

The only thing you need to do to avoid getting into a financial trouble is making payments on time and not miss them. Make your repayments promptly and everything will work out just fine for you.

amazing benefits of small loans

 

 

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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.