Can I Get a Loan With Bad Credit?

Loan With Bad Credit

Today more people than ever have a bad or extremely bad credit rating. There are a myriad of different reasons why you may have bad credit. All sorts of financial problems can lower your credit rating; missing payments on an existing loan, loosing your job, mortgage arrears, sudden unfoseen expenses etc.

You’re not alone if you’ve recently fallen into bad credit due to the current recession. We’re all suffering a strain on our finances. The good news is that even with extremely bad credit you can still qualify for several types of loan.

Despite your bad credit it’s first worth checking to see if you qualify for a more traditional mainstream loan rather than a bad credit loan as they will have lower interest rates and better financing terms. Some loans will be better than others, depending on your financial history.

If you find that you don’t qualify for a more mainstream loan, then all is not lost. A personal loan and a payday loan are two types of loans that you can get even with bad credit. Of course, the interest rates will be a little higher and the terms of the loan may be a little stricter but neither will be extortionate. The lender is essentially charging a little more for the increased risk he’s taking in accepting your bad credit.

Secured Loans
Now a personal loan can be both secured or unsecured. If you have bad credit and you’re looking to borrow a larger amount then a secured loan is your best option. You will need collateral, usually property, on which the lender can secure your loan. Because the lender will not be in any sort of financial danger with a secured loan, the interest rates will be lower and the payment schedule and other terms of the loan may be more flexible. The money available to borrow through a secured loan ranges from between £1,000 to £100,000.

If you don’t like the idea of putting your property on the line or you simply don’t have any collateral to offer then a secured loan is not for you.

Unsecured Loans
Unsecured loans are your other option, they’re easy to get but the interest rates will be a little higher and the financing terms stricter. The amount available to borrow is also lower than with a secured loan but if you don’t need anything above £50,000 then you’re fine. Unsecured loans are available from between £500 to £50,000.

Payday Loans
A third option is the payday loan, which is basically a cash advance on your wage. A payday loan is generally used in a cash emergency when something unexpected has popped up and left you financial short. You will need to provide proof of a monthly income to qualify for a payday loan. You will also need to prove that you have been at your current residence for a time.

However, payday loans do not require collateral, they’re very short term, usually less than a month and consequently have a much higher interest rate than the other types of loan mentioned above. The loan amounts available range from £80 to £1,000.

Whichever loan option you choose, whether it be secured, unsecured or payday simply making your loan repayments on time and in full will improve your credit rating and as long as you continue those repayments you could switch your loan at a later date for a new loan with a better interest rate based on your now improved credit rating.

If you’re looking for a loan with bad credit Quick And Easy Loans can help, we search 90%+ of the loan market for the lowest rates and best deals available to you. We offer a quick application with no obligation and we can help you with a secured, unsecured and payday loan whether you have bad credit or not. Get your Quick Loan here now.