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Personal Loans for Bad Credit


How easy is it to get a personal loan for bad credit in the UK?


Have you ever been turned down for a personal loan in the past? In all likelihood, it is because of issues with your credit history. This may something such as County Court Judgements (CCJs), defaults, or late payments.


Lenders nowadays understand and recognize that borrowers should have access to credit when they require it, irrespective of their credit score. They often pay more attention to a borrower’s ability to pay back a loan, over his credit score, when they sanction a quick loan bad credit UK for him.


Numerous lenders will be willing to sanction a small loan bad credit UK for you, even while you have a bad credit score. They devise bad credit personal loans especially for such borrowers because such borrowers are numerous across the UK.


However, it is not all lenders who would be willing to sanction a loan for you when you need money now UK, if you have a bad credit score. In all likelihood, direct lenders such as banks and building societies are apprehensive about sanctioning loans for borrowers with a bad credit score.


In terms of getting emergency loans for bad credit UK, things are now better than ever before. Numerous lenders make typical loans available for the purpose, such as online personal loans for bad credit.


Will I get a personal loan with a low credit score?


There are cases wherein borrowers get a personal loan on the same day as they apply for it, even while they have a bad credit score. Availing the services of a broker can be priceless in this regard.


A broker will match you with all lenders who will be willing to sanction a loan for you, based upon the unique circumstances surrounding your financial and credit records. This not just speeds up processes and saves hassle on the part of a borrower, it presents some choices before a borrower as well.


The brokers match your applications with lenders who consider all types of credit histories. A borrower conveniently fills up the loan application online. The decisions over the applications are instantaneous, and the loan may be approved fast. The borrower is likely to receive the amount in his account in a matter of a few hours.


Does a bad credit record make my loan more expensive?


Nowadays, one comes across numerous lenders who are willing to sanction personal loans for borrowers. If you have a good credit score, getting the lowest APR Loans UK will be easier.


So, a bad credit score personal loan is likely to be more expensive, because of the higher degree of the risk that a lender undertakes.


Personal loans, however, are regulated by the Financial Conduct Authority (FCA). The FCA introduced an interest rate cap over all loans. This works in the interest of the borrowers.


Even while a loan is approved for a borrower who has a bad credit score, he won’t have to pay over 0.8% interest per day.


Banks are sometimes not willing to sanction loans for borrowers with bad credit ratings. The role of direct lenders becomes indispensable in this regard.


Can I get quick cash loans no credit checks UK?


We nowadays frequently come across audio-visual advertisements on different media channels, which talk of sanctioning personal loans with no credit checks. In practice, this does not happen.


Each of the credit providers is bound by the FCA to conduct a credit check before they approve a loan application and sanction a loan.


A lender has a choice at conducting two kinds of checks over your credit file. He may conduct a soft credit check, which does not affect your credit score, or a hard credit check, which does affect your credit score.


In most cases, when a borrower applies for a personal loan, lenders conduct a soft check over his credit history. Since the other lenders don’t get to see the development, it has no implication over your credit history.


Lenders conduct a hard search over the credit file only when they offer a loan, and the borrower accepts it.


The right way for a borrower to keep his credit score strong is to ensure that he makes repayments on time. This may be the most critical factor that affects a credit score.