A significant number of people in the UK have a bad credit history or no credit history at all. If ever they have an emergency, taking a loan from high streets lending companies such as traditional banks and financing companies. These financing institutions usually avoid lending to people with bad credit. Lending money to people that can hardly manage their finances can be risky. So, what can you do if ever your only option to meet your financial obligations cannot extend you a loan? You might wonder what you can do during your dire financial needs. Still, you do not have to panic because there is good news. Nowadays, you can quickly find specialist lenders that offer loan products to suit the needs of people with bad credit history. Here are some of the loan products that people with bad credit can avail.
If your credit record does not look good, you can seek the help of a guarantor, someone who would pledge to pay your debt if you default. You can ask a relative, a best friend, or someone who is willing to act as guarantor. With this type of loan, you can borrow from £500 – £1500 without fees and with the same-day release. Guarantor loan comes with low interest compared to other types of loan products. Unlike other bad credit loans that have strict repayment terms, a guarantor loan is flexible. You can pay back your debt in advance without penalty, and you can also ask for an extension if you unexpectedly find yourself in a situation where you cannot afford to pay back at the current repayment terms.
You need money badly, but you do not have any credit history. Borrowing money from lending institutions might be a challenge. But, if you have a car, you can apply for a logbook loan, which is a loan that you secure with your vehicle. The lender would take the documents of your car until you have paid back your loan. The amount that you can borrow is dependent on the value of your vehicle. What makes this type of credit advantageous is that although you have borrowed money against your car, you could continue using it. However, failure to pay your logbook loan could result in the lender seizing your car. To prevent this, take a loan that you can afford to pay.
Bad Credit Unsecured Personal Loan
Nowadays, there are specialist lending companies for people with bad credit. These financing firms do not ask for your credit score. You do not have to have a property to get the loan. If you are unemployed but receiving benefits from the government, you may qualify for a payday loan or a doorstep loan, however, although you cannot borrow thousands of dollars, whatever amount that you can borrow from these specialist companies can be of great help.
If you own a car or your home, you can use these assets to secure a loan even if you have a bad credit history. You might not be able to borrow a considerable amount because this would depend on the value of your car or house and your repayment capacity. It would not be wise to acquire more than what you need and what you can afford to pay because the lender could seize your asset if you cannot settle your account during the repayment schedule and sell your asset to cover your debt.
Consider these options if you need cash urgently. You can use the internet to find these specialist lenders and apply for a loan.