Loans for people with bad credit | Personal loans

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The Loan Locator
The Loan Locator
£50 £25,000 Depends on amount borrowed Depends on amount borrowed 23.1%
The Loan Locator specialise in fast, unsecured loans with 48 hour turnaround. No worries if you've been refused or declined before. Use your unsecured loan of up to £25,000 for any purpose and spend your money however you like.
Kensington Direct
YES Loans
£100 £5,000 1 month 24 months 53.9%
Kensington Direct Loans is your definitive bad credit broker. By filling out a short online application form that will take just a few minutes you will be matched with the right bad credit lenders for you. Approval takes a few seconds and the money will be deposited straight into your account.
You must:
  • Be a UK resident
  • Be over 18
  • Be in some form of employment
  • Have 3 years of UK address history
Representative Example: At 53.9 % APR fixed, £3000 borrowed over 36 months payments would be approx £151.19 per month. The total amount to be repaid would be £5442.84.
Regent Finance
Regent Finance
£500 £25,000 1 month 25 years Depends on amount borrowed
If you have less than perfect credit and are finding it hard to get a loan, Regent Finance can help. Apply online for an unsecured loan from £500 - £25,000. Find out what options are available to you and receive a free no obligation quotation.
Representative example: If you took a loan for £10,000 with a Representative APR of 6.9% fixed and an annual interest rate of 6.9% you would pay £196.56 per month with a total charge for the credit of £1,793.43 making the total amount you repay of £11,793.43
Provident Personal Credit
Provident Personal Credit
£50 £500 23 Weeks 52 Weeks Depends on amount borrowed
Provident Personal Credit is the UK & Republic of Ireland's leading home collected credit company, offering small, unsecured personal loans and other related products. A name you can trust - 125 years in business. Specialise in providing small cash loans of up to £500 to customers from all walks of life. Address: 1 Godwin Street, Bradford, BD1 2SU.
You must:
  • Be a UK resident
  • Be at least 30 years old
Representative Example: Total Amount of Credit: £300; Representative APR: 272.2%; Duration of Agreement: 52 weeks; Total Charge of Credit: £246; Total Amount Payable: £546; 52 weekly payments of £10.50; Rate of interest 80.2% p.a. fixed; The information underlined is variable depending on the loan amount, product & term offered.
Save Simply
Save Simply
£500 £25,000 12 months 25 years Depends on amount borrowed
Get free quotes and a loan of between £500 - £25,000 with Save Simply. No matter what you need the loan for, Save Simply accept all applications. Bad credit loans are available to all applicants.
Representative example: If you took a loan for £10,000 with a Representative APR of 6.9% fixed and an annual interest rate of 6.9% you would pay £196.56 per month with a total charge for the credit of £1,793.43 making the total amount you repay of £11,793.43
CUS4 Loans
CUS4 Loans
£200 £15,000 12 months 60 months Depends on amount borrowed
CUS4Loans can help you to find a lender provider for a range of loans whatever your circumstances - even if you have been turned down for a loan elsewhere or have credit problems. Tenants & Homeowners - Loans £200 to £15,000 approved.
THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT.
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Personal Loans

A personal loan is normally for a relatively small amount (often 1,000-2,000). It is repaid relatively quickly - for example around two years and is normally unsecured, which means you do not need to risk any collateral to qualify for the loan. Personal loans are often the best option for people who are in a crisis situation in which they need money quickly to solve a financial problem, and cannot acquire it from family, friends or their own savings. In these circumstances, a personal loan is a much less expensive and sensible option than a credit card cash advance.
A personal loan is also preferable to having your car repossessed or your house subject to foreclosure due to missed payments, or having to deal with whatever other problems you may face in the future.
For situations that are not emergencies, personal loans are not really the preferred option, although they are still usually more advisable than using >credit cards. You should generally only opt for personal loans if you really need the money and cannot get it from your savings, family, home loan, or another source that charges less interest - in short, if your only alternative is a credit card.

Personal Loan or Home Loan?

Personal loans are far more expensive than home loans, but there's one advantage of personal loans that should be considered: there is less risk involved, ultimately. Unlike car loans or home loans, personal loans are not normally secured - meaning there usually will be no collateral that the lender can seize if you default.
If you're in a financial crisis now, you have to consider the possibility that your problems may be added to by another financial crisis in the future. Therefore if your finances get worse and you cannot pay back your personal loan, at least no one will auction off your house.

How Are Personal Loans Better than Credit Cards?

If you go to a bank and ask for a personal loan, they may try to convince you that a credit card is a better option. But personal loans are probably better for you, because on average you'll end up paying less to the bank. Do your own research and stand your ground if pressured to apply for a credit card instead of a personal loan.

Similarities between Credit Cards and Personal Loans:

  • Interest rates tend to be around 10% to 20%.
  • Typically unsecured i.e., you don't have to put up any collateral.
  • The amounts of money involved are typically a few thousand pounds or less (and sometimes even less than 250).

Advantages of Personal Loans over Credit Cards:

  • Personal loans have a fixed repayment period, with a pay-off date you can plan ahead for. You could of course force yourself to pay off your credit cards within a fixed period, but with a loan, the repayment period is based on a contract, rather than your own will power, so payoff success rates are much, much higher.
  • Credit cards have a revolving line of credit. Personal loans are also known as installment loans. When you make a payment an equivalent amount of credit is not freed that you can charge against. This is another reason the average person is likely to manage to get out of debt faster with a loan.
  • Personal loans have a fixed interest rate that you cannot usually raised whenever ou needed by the lender. When customers approach their credit limits, credit issuers would be inclined to raise interest rates - yet another reason the banks normally prefer giving out credit.

How to get a personal loan if you have bad credit history

If you have bad credit history, you will have a hard time getting a personal loan at a competitive interest rate. Although, having had past credit problems may be a rather good reason to avoid personal loans in the first place but if no other options are avaiable, and you feel you will be able to make the payments, here si some advice.
  • Try a credit union. Not only are they normally not so expensive, they are often more forgiving too.
  • If you can't go to a credit union, you could try getting a loan from your own bank. If you have a good record with them, they may be more likely to oblige. Of course, few banks actually advertise personal loans, and some really do not offer them, but it can't hurt to ask.
  • Put up collateral. Although personal loans are usually unsecured, a loan officer may be willing to help you borrow against an insurance policy, against property or some other asset. Obviously collateral makes it all the more urgent you pay off this loan.
  • Get a guarantor. This is yet more risky than offering collateral though. You stand to lose not just an asset but your relationship with a friend or loved one if you default, but if your problem with credit really was just a fluke, and your prospects for repaying the loan are very good, it may be worth the risk. However, don't feel offended if your friends or relatives do not honor your request - after all, they have a lot more to lose than a bank does.
  • Don't apply for multiple loans all at once because you may look desperate and lose your chance of getting any of them. Getting rejected for a loan will of course also hurt your chances of getting approved for a subsequent one, since it will raise a red flag. The only solution is to conduct your own research, communicate with the loan officers, and then apply for the loan you have the best chance of getting.
In the end, the best advice about personals might be not to get one unless you absolutely have no other choice except credit cards. If a personal loan really is your best option, make sure to follow all the tips above when researching where to go.

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Contact Us | April 19th, 2014