Can I Get A Loan If I Have Very Bad Credit?

We all do financial management, but we cannot always avoid the requirement of extra money suddenly. We might need it for a medical emergency or any other unforeseen event. One might also not have enough money to satisfy their daily needs due to loss of income, which is when small loans come to the rescue. But not everyone has the perfect credit score always to get loans easily. Bad credit history is more common than you think, and it negatively impacts a person’s loan-taking capabilities. But that does not make one ineligible to get money in emergencies, but they would have to plan everything a little better to get things sorted.

A credit check is one of the most important things banks and financial institutions do before lending money. It overviews the borrower’s creditworthiness and showcases their ability and intent to repay the money. People with good credit history get big loans easily, but that does not mean people with bad credit are ineligible for loans. There are many very bad credit loans direct lenders UK no credit check. These are usually short-term loans that can come in handy in stressful situations.

These loans are not lent without a credit check, it rather carries out a soft credit search that has no impact on your credit history. Lenders doing a soft credit search usually look out for easily available details like name, address, birth date, etc., to get some details about you. Unlike the hard credit search, it does not affect your credit score, and other lenders will not be able to know about this search either. 

However, you might have to pay a much higher interest rate when you repay these loans. Some of the most widely available very bad credit loans direct lenders UK no credit check would include:

• Secured loan- This is the most common option available, and you would get the loan easily, even with bad credit. It is because the security against the loan offsets the risk associated with bad credit. You would have to put up a valuable possession against the loan, like a home, car, etc., and you would get repossession once you pay the loan back with interest.

• Guarantor loan- Herein, the loan is guaranteed by a family member or close friend, who assures the lender to pay back in case the borrower defaults. 

• Personal loans- these are unsecured bad credit loans and come with the highest interest rate. As there are no collaterals or guarantors, the amount you can lend is also very limited.

Remember, the lower your credit is, the more expensive your loan will be. If you avail of this loan and pay it back on time, it will improve your credit score and help you get better loan options in the future.