Are you trying to fund a vacation? Plan a wedding? Did your car break down and you don’t have the money to cover the repairs? Is it time for a new washing machine? Money problems can crop up at any time and not everyone is in a position to fund such things, which is where personal loans come in handy. When you use a personal loan for the right reasons it can pay off in big ways, the important thing to do is find a responsible lender who offers personal loans for bad credit.
How to get a loan with bad credit:
First, it’s important to determine what type of loan it is you need. Whether it’s a payday loan or a personal loan, it’s important that you understand what it is that you are applying for.
Check Your Credit Score
You should always check your credit score before you apply for credit – it doesn’t harm your score to check it, you could do it every day with no effect if you wanted to. However, what will impact your credit score is constantly applying for credit. Know that securing a loan and paying it off as agreed will help you rebuild your credit score – which means in future you won’t need to struggle to obtain a loan.
Don’t borrow more than you need, remember you will pay interest on the sum that you are borrowing, so opt for the lowest amount that is necessary. Don’t apply for multiple bad credit loans – use one lender and apply for that. Every application dents your credit further.
It’s never wise to over-report your earnings, nor should you under-report it. Be honest with your financials on the application and request the lowest amount possible. Even bad credit direct lenders may reject you if you don’t provide accurate information in an application. If there is a spot to include your partner’s income you should go ahead and input that. However, don’t inflate either of your incomes. It may be tempting to inflate the numbers to secure the loan (or a higher loan), but it could be considered fraud. It also means you will borrow too much and may struggle with repayments.
As noted above, accurate information is vital to having your application approved. Make sure that your address details and the spelling of your name is correct before you hit submit. You may want to research your address, too, it is possible that someone who previously lived at your address ran up debt that is affecting your credit score and your ability to get a line of credit.
Get A Quote
Shop around before you settle on your lender – you want the best deal possible, you may even find that other lenders will match a better deal you find.
You may want to consider getting a co-signer who will bolster your chances of receiving that loan you need. The benefit of this is it relies on their credit score instead of yours. The drawback is that if you fail to repay your loan as agreed it won’t just impact on your credit score, it will affect theirs, too. In turn, this could have a detrimental impact on your relationship with this person.
If you need bad credit loans, don’t despair – they are available to you and from reputable and responsible online direct lenders. Online loans are convenient and easy and allow you to avoid the stress and frustration of walking into a bank and asking for money. There are scammers online, though, so it’s important to look for an FCA authorised lender.