What Are Bad Credit Loans?
Most lenders require people to have a clean credit history to approve their loan applications. Thus, people with bad histories of late repayments have slim chances of getting such loans. Fortunately, many lenders are still willing to understand that some people are just out of luck financially to handle their repayments on time.
Bad credit loans are the solutions lenders can offer to help people in need when their credit scores are not good enough for standard loans. On bad credit loans, lenders make unique adjustments to the repayment terms to make sure the lenders can afford to pay back their debt on time.
At FastPaydayLoans, we have a panel of very bad credit loan direct lenders from the UK. With them, people struggling with late repayments in the past would not be helpless. Instead, this kind of loan helps them to get by with financial aid and allows them to fix their credit score.
|Why Trust FastPaydayLoans?|
|How much can I take out?||£100-£5000||No obligation quotes|
|Representative APR||49.7%(variable)||Competitive rates|
|Will bad credit be accepted?||Yes||Lenient requirements|
|What are the repayment periods?||1-36 months||Flexible loan term options|
|How can I apply?||Apply online||24/7 available|
What is a Bad Credit Score?
A credit score is a parameter set by FICO that shows how trustworthy you are to get granted loans. People with good credit scores are deemed worthy, so they tend to borrow money easily. On the contrary, people with bad credit scores will most likely get rejected when applying for loans. Here are the levels of the credit score by order:
- Excellent: 750 - 850
- Good: 700 - 750
- Fair: 650 - 700
- Bad: 560 - 650
- Very Bad: 300 - 560
Your credit score is determined by your history of financial situation, debt applications, debt repayments, and such things. To get a good score, you need to have a healthy balance and keep repaying your debts on time.
Unfortunately, financial struggles may cause them to get roped by debts that they keep repaying late. Eventually, they end up with bad credit scores. Nonetheless, we believe your financial struggles and credit histories are not supposed to limit your chances of getting financial help. Thus, very bad credit loan direct lenders UK on our platform will do their best to make loans still available for anyone, even if they have bad credit scores.
Why Do I Have Bad Credit?
Late or Missed Payments
Some people are just not financially fortunate enough to handle their bills and debts. They are struggling even just to get by every day. Bills and debt repayments can be too hard of work. As a result, they keep paying those off later than the set deadline.
One or two missing payments might not be a big deal on your credit history. But, if your situation is pretty bad, there are chances that you will miss your payment due dates again and again. Things will get worse and accumulate over time. Eventually, you will end up with a bad credit score.
If your business falls apart to the point that you get declared bankruptcy, your credit score will also get affected negatively. Depending on how bad your situation is, you are most likely to end up with a bad credit score due to this.
Repossessions of Belongings
Another thing that may worsen your credit score is a history of property repossession. Be it a house or a vehicle, repeatedly failing to pay your mortgages in time may lead to a point where the company has to repossess the belongings you have purchased. This occurrence, too, will decrease your credit score pretty badly.
How to Apply for A Bad Credit Loan on Our Site?
Applying for a bad credit loan on FastPaydayLoans is effortless and quick. There is no need to waste your time standing in line and waiting for approval. All can be done online. Here is what you should do:
1. Apply Online
Use our loan calculator to estimate your loan scheme by inputting the amount of money you want to borrow and how long you want to repay it. After choosing your loan plan, fill out the application form with information about your details, income, expenditure, and bank accounts.
2. Get Approved
The loans for bad credit direct lenders on our platform will process your application promptly by assessing your financial capability for the repayments. As fast as the same day, our representative will contact you to inform you whether we approve your loans or not.
3. Get Your Cash
If you are approved, the lender that matches with you will make your money readily available and transfer it to your bank accounts.
How much would you like?
Representative Example: Rates from 43.1% APR to 1333% APR. Minimum Loan Length is 1 month. Maximum Loan Length is 36 months. Representative Example: £1,200 borrowed for up to 75 days. Total amount repayable is: £1506. Interest charged is 0.34% per day, amounting to £306, annual interest rate of 124% (variable). Representative APR: 49.7% (variable).
What is APR?
Abbreviation of Annual Percentage Rate, APR is the cost you need to pay for a loan. For example, a £1000 loan with 10% APR means you will need to repay an extra £100 on top of the £1000 you borrow. APR also consists of compound interests that also determine the total cost of your loan repayment. Once your application is approved, we will provide you with a clear and detailed calculation of your APR.
Will Applying for a Loan Affect My Credit Score?
Applying for a loan doesn't directly affect your credit score, but it will open an opportunity for you to do it. By repaying your debts on time, your credit score will gradually improve. If you keep it that way, your bad credit score may eventually heal.
Why Is It Usually Difficult To Get Loans With Bad Credit?
Lenders need to be sure that you can afford to repay your debts. Meanwhile, a bad credit score means you have a history of missing your repayment due date. For lenders, it means there are chances for you to fall short on your repayments again.
How Do Bad Credit Loans Work
FastPaydayLoans connects you with direct lenders who will assess your capability based on the information you provide on the application form. Once approved, the said lender will transfer the money directly to your account.