Bad credit is a common problem in the UK. Whether you’ve earned it because you lost your job or because of a default, you’ll have no other choice but to face the consequences. One of the most common consequences of bad credit is the struggle to get approved for a personal loan. Your creditworthiness has been badly hurt by your poor credit rating, which means that you’re now considered a high-risk borrower. Most lenders will likely reject your loan application. Fortunately, there are alternatives specifically offered for borrowers with bad credit. Below are some loan options you can check.
Payday loans are very popular in the UK for its promise of quick cash as well as for the controversies hounding the loan product. Despite experts discouraging borrowers, more people continue to apply for the loan because it’s convenient and easy. But more importantly, borrowers with bad credit can apply for said loan product. You can borrow from £100 to £1,000 or more payable in 28 days or on your next paycheck.
Doorstep loans are like payday loans where the borrower is not required to have good credit to be eligible. But unlike payday loans, doorstep loans are even more convenient because the lender goes to you rather than the other way around. You can apply right from the comforts of your home. Loan amounts, however, are limited typically just between £50 and £500.
If you need a bigger loan amount, you can always check out guarantor loans. Guarantor loans are also easy to avail but there’s one important requirement you need to be eligible. As its name suggests, you need to find a guarantor with good credit to be able to borrow from £1,000 to £15,000 at interest rates more affordable than other unsecured loans. In a sense, the guarantor is the security to guarantee lenders that they won’t be losing money when they approve your loan.
If you need even larger amounts than what a guarantor loan can offer, a logbook loan may be perfect for your financial situation. With logbook loans, you can borrow up to £50,000. Unlike the aforementioned loans, however, you need a security, in this case your vehicle to be eligible for the loan. Even if you have bad credit, so long as you’re willing to use your vehicle as security, you can avail a logbook loan. For the best logbook loan deals, simplelogbookloan has exciting offers you can check out.