Bad Credit Unsecured Loans with an Instant Decision

Bad credit loans are specifically designed to offer finance to those with less than perfect credit scores. If you have a history of bad credit and have missed some payments in the past, it can be very difficult to access affordable finance through mainstream banks and online lenders. Fortunately, there are specialist providers that offer bad credit loans in the UK so you can still get the money you need.

UnsecuredLoans4U works with a number of bad credit lenders who are willing to take a view on poor credit, CCJs, IVAs and more. They understand that emergencies can arise which mean that you might have the occasional missed repayment or default. What is most important is your commitment to repay your loans in the future and that you can do this through a regular income that you receive from work.

• What are the benefits of bad credit loans?
• How to apply for a loan?
• Bad credit unsecured personal loans explained.
• Example lending amounts.
• Getting a loan with poor credit.
• Do you need a credit check?
• Lending criteria.
• How you can improve your credit rating.
• How are UL4U different?
• What exactly is a bad credit loan?
• Why would you want a loan?
• Asking friend or family.
• Interest Rates

Benefits of Unsecured Personal Loans for Bad Credit

How to Apply for a Bad Credit Loan with UnsecuredLoans4U

You can apply to borrow £100 to £10,000 repaid over 3 to 36 months in equal monthly instalments. We will match your requirements with the lender most likely to accept your loan and offer you the most favourable terms. Our application form takes less than 5 minutes to be completed and you will receive an instant decision on the screen.

What is Defined as Bad Credit?

Everyone receives a credit score when they turn 18 years old and this can go up or down based on how well you keep up with payments for things like credit cards, personal loans, utility bills, mobile phones and more.

For every missed payment or default you make, your credit score will go down, and eventually this could lead you to have a bad credit score.

Your credit score is calculated by the three main credit reference agencies in the UK: Experian, Callcredit and Equifax.

• Experian: 0 to 999 (anything under 720 is considered bad credit)
• Callcredit: 1 to 5 (anything 1 or 2 is considered bad credit)
• Equifax: 0 to 700 (anything under 379 is considered bad credit)

Example Loans

How Can You Get a Bad Credit Loan?

If you are looking to borrow lower amounts such as £100 or £500, there are personal loans available, and to manage the risk, you may be required to pay a slightly higher interest rate or be offered a lower amount than you requested to borrow.

However, there are other options available (see below) which involve using secured loans or adding a guarantor to help you get the loan you need.

Is It Possible to Get a Bad Credit Loan with No Credit Check?

Yes, Whilst the criteria for most unsecured loans is based on your income and credit score, there are other options available for people looking for loans with bad credit.

Guarantor loans – You can add an extra person to your loan agreement to give you extra security – otherwise known as a guarantor loan.

Provided that your guarantor has a good credit score and a regular income, you are able to leverage their creditworthiness and borrow up to £15,000. This is commonly used by people with no credit ratings and even those looking for very bad credit loans, including histories of CCJs and bankruptcy.

The guarantor has quite a large responsibility because they are required to pay off your outstanding loan repayments if you cannot keep up – so it is important to choose a guarantor who you know well and trust.

Logbook loans – If you have a vehicle, you can use this as collateral and borrow up to £50,000 through a logbook loan. This allows you to release cash from your car, bike or van provided it is less than 7 years old. However, since this is a secured loan, your vehicle is in risk of repossession if you cannot keep up with repayments.

What is The Criteria for a Bad Credit Loan?

To be eligible for a bad credit loan, you must meet the following criteria:

• UK resident
• Over 18 years of age
• Employed (part-time or full-time) and earning a minimum of £500 per month
• Can afford monthly repayments
• UK debit account
• UK mobile phone and email address

Companies that offer bad credit loans take a much different view to traditional lenders. They are less interested in your past, but more interested in your future.

By having a regular income through work, it shows that you have a practical way to make your monthly loan repayments. Lenders will also ask about your monthly expenses such as rent, bills, utilities and entertainment and finding the perfect balance will determine how much you can borrow.

How Can You Improve Your Credit Rating?

If you have bad credit and are worried about being declined for a loan, there are sometimes some quick fixes you can do to improve your score.

For example, if you have not already, you can look at joining the electoral roll which confirms your name and address with the local government authorities. Credit reference agencies and lenders consider this to be a good trust factor because it confirms your name and location.

Other things you can do include closing any credit cards and store cards that you do not use – because it potentially shows that you have access to credit and could make your stretched financially.

Also, avoid making lots of loan applications in a short space of time. This is considered by lenders to be a bit of a warning sign that the individual is desperate for finance.

How is UnsecuredLoans4U Different?

At UnsecuredLoans4U, we act as a full market broker, so your application for a bad credit loan will be reviewed by over 50 direct lenders for bad credit and matched with the best one to suit you. Therefore, there is no risk of having multiple credit searches that might impact your credit score, nor do you need to try apply with companies over and over, waiting for a response.

Once you have completed the application in less than 5 minutes, you will receive an instant decision on the screen and if approved, customers can typically receive funds to their bank account in 1 hour or on the same day of applying.

What is a Bad Credit Loan?

Well, just as the name would suggest, a bad credit loan is an option for consumers who either have no credit score or have one that is below average making it hard for them to qualify for standard loans.

Why Would One Want to Get a Bad Credit Loan?

Well, there are many reasons such as investments and other business expenses. The prominent reason though is by far emergencies. If someone in the family is hospitalised or your car breaks down then getting a loan is an obvious solution.

However, if you either have no credit score or have a sub par one then getting the money you need to resolve the emergency could prove rather difficult. That’s why lenders have been offering this option more and more like a path of relief to those who need financial assistance yet don’t have the credit score to back them up.

Why Not Ask Family or Friends Instead?

One path that people take when unable to qualify for standard loans due to their credit score, or lack thereof, they tend to look towards their relatives and close friends for the financial assistance. While this can be helpful in some situations, it’s ill-advised as a debt between family or friends could lead to resentment if payments are late. It’s unwise to jeopardise close bonds with your friends and relatives when you could just get a bad credit loan from an official lender instead without having to worry about family feuds.

Are Interest Rates Higher?

Whenever you go to a bank seeking a bad credit loan you can expect that the interest rates they charge you will be higher than that of standard loans. That being said, there’s actually some logic behind this decision rather than disdain for the financially challenged. You see, when banks hand out loans to those with a low credit score or even none at all, they’re risking their funds as you may not be able to make payments consistently if at all.

By raising the interest rates, they increase their potential return on investment if you do manage to pay. This turns it into a high-risk high-reward situation rather than a high-risk equal-reward situation, with the latter making no sense to jump into in the first place. While you might find it unfair that those who have less need to pay more, it’s this very system that allows lenders to help those in need, so don’t be too hard on the banks — at least they’re trying.