Flexible Bad Credit Loans for UK Consumers
UK consumers rely on various types of finance. Loans, credit cards, and other lines of credit help them address short-term spending demands, as well as providing funding for personal long-term goals. Whether you are buying a house or completing day-to-day transactions at retail points of sale, diverse credit opportunities furnish options for covering expenses. Among the borrowing alternatives available to UK workers, bad credit loans provide short-term flexible financial resources for good and bad credit applicants.
How much would you like to borrow?
Representative Example: Rates from 49.9% APR to max 1333% APR. Minimum Loan Length is 1 month. Maximum Loan Length is 36 months. Representative Example: £250 borrowed for 30 days. Total amount repayable is £310.00. Interest charged is £60.00, annual interest rate of 292% (fixed). Representative 669.35% APR (variable).
What is a Bad Credit Loan?
Banks, credit unions, and building societies offer a range of financial products, funding big-ticket purchases such as houses and cars. Traditional banking institutions also offer near-term financing, aimed at smaller purchases. The diverse credit opportunities assist countless consumers, but securing bank loans typically requires a high credit score. Although they are not reserved exclusively for people with past credit problems, bad credit loans offer an alternative for applicants seeking quick cash, without a lengthy credit review period.
Bad credit lenders specialise in short-term financing, bridging income gaps between paydays. The flexible resource complements traditional borrowing options, providing seamless online access for workers with high credit scores, as well as applicants with bad credit.
Why Choose Bad Credit Loans?
Credit consumers have multiple options to choose from, when selecting personal financing. Bad credit loans serve a vital niche, furnishing fast cash with a short repayment period. The alternative online loans offer several advantages, compared to conventional lending options, including the following benefits.
- Easy Online Application – If you’ve ever taken out a bank loan, you’re familiar with the often cumbersome application and approval process. Not only does loan approval require in-person application at your local bank, but you may also be asked for extensive documentation, before being considered for a loan. Bad credit loans originate online, so the application process is streamlined, compared to building societies, banks, and other conventional lending resources. An online application for a bad credit loan takes only minutes to complete, without providing a large volume of supporting material.
- At Home Convenience – Travelling to local lenders may not be a major obstacle, but why invest the extra time, when the entire process can be completed online? Convenient bad credit loan access allows you to submit your request without ever leaving home, and once you’re approved; loan proceeds are transferred directly to your current account.
- Fast Response – Online lenders specialise in fast loans for good and bad credit applicants. Unlike some traditional lending outlets, Boutell’s preferred providers understand time is of the essence, delivering answers about you loan. Whether or not you’re approved for the amount you request, or get green lights for a lesser loan, you won’t wait long for the information you need, regarding your application.
- High Approval Rates – Conventional lenders evaluate consumer credit histories before approving loan applications. A history of bad credit can work against you at the bank or building society, interfering with your ability to secure funding.
Whilst online lenders also consider your credit history before approval, bad credit loan providers may have greater flexibility furnishing funds. In many cases, credit applicants turned away at the bank may still be approved for online loans, despite imperfect credit references.
- Quick Turnaround Times – When urgent spending demands exceed cash on hand, you can’t afford to wait for timely financing. Boutell’s network of top lenders accommodates the need for speed, rapidly funding approved requests. Eligible applicants receive loan proceeds directly to their current accounts.
- Custom Loan Amounts – Borrowing more money than you need may create undue financial pressure. Bad credit lenders furnish instant payday loans, issued in whatever amount is required for the spending demands at hand. Whether you need £50 for your energy bill or £2,000 to conduct an emergency repair, custom loan amounts ensure you’re covered, without overextending.
- Clear Repayment Terms – Variable rate loans and some other financial products can keep you guessing, uncertain about repayment amounts and timing. Bad credit lenders establish your repayment schedule up-front, based upon your earnings and loan amount. Equipped with clear repayment terms, you won’t encounter surprises as you pay back your loan.
Does Credit Scoring Play a Role?
Traditional lending institutions are obliged to consider an applicant’s credit history, before offering financing. The move not only protects consumers from taking on more credit than their cash flow can support, but credit checks also provide repayment assurances for lenders.
Credit reference agencies are responsible for chronicling consumer credit interactions. Each time you enter into a credit arrangement, agencies such as TransUnion, Experian, and Equifax make credit entries, comprising your credit file. Although each agency acts independently, the data contained in their reports is similar, reflecting all your personal credit outcomes, over time.
Creditors rely on reference agencies’ credit reporting to evaluate applicants for mortgages, lines of credit, small loans, credit cards, and other financial products. To simplify the assessment process, credit reference agencies distill each consumer’s credit file to a single “score” reflecting the individual’s overall credit and finance performance.
When you apply for conventional financing, banks order credit reports, often conducting a “hard” credit inquiry, exploring your creditworthiness. Each time lenders do a hard credit pull, your credit score reflects it, marking your request for funding. In many cases, online lenders utilise “soft” credit inquiries for pre-approval. This form of credit inquiry yields less detailed information, but does not leave a mark on your credit record. The streamlined checks help online providers expedite funding, enabling them to provide quick cash, without delays.
A history of bad credit may disqualify your bank or building society loan application. Bad credit loans provide alternative resources, which may be available to applicants without perfect credit histories. Establishing good credit and protecting your score from downgrades may make it easier to secure funding.
Building Positive Credit References and Protecting Your Score
From your earliest credit interactions onward, reference agencies keep tabs on your finances. Establishing and preserving good credit references ensures access to mortgage finance and other substantial funding, as well as opening doors to small loans for short-term demands. Consumers use the following strategies to build and protect positive credit references.
- Start Small – In addition to bad credit, some consumers suffer from a lack of credit references, begging the question: How do you establish a good credit score without access to finance opportunities? Beginning to build credit at a young age and taking small steps are two ways consumers get a finance foothold. For example, your mobile contract is a credit agreement, requiring consistent monthly payments. Meeting the terms of your contract, without payment problems, results in positive credit reporting. Effectively managing small online loans and car finance can also help build-up your credit score.
- Pay Timely – Creditors want assurances you’ll meet financial obligations. As a result, late payments weigh heavily on your credit score. If you expect to achieve and maintain positive credit references, paying timely is essential – every time. Though credit card companies and other credit partners may extend grace periods or one-time late payment courtesies, paying late will quickly catch up with your credit score.
- Check Your Score – Banks and credit reference agencies make mistakes, which can have devastating impacts on your credit score. Periodically checking your credit file ensures information is accurate and enables you to correct mistakes, before they grow into larger problems. Although agencies charge fees for credit reports, you are entitled to a free annual copy from each credit reporting company, upon request.
- Avoid Overutilisation – Creditors are concerned with the number of open accounts in your credit file, but they also want to know how much of your available credit is utilised at any given time. Maintaining a low utilisation ratio indicates responsible credit management, whilst running-up all your accounts to their maximum may downgrade your credit strength.
- Open Only What You Need – The consumer credit market is competitive, so credit card companies and other providers offer incentives for new customers. Though you may be tempted to open new lines of credit, in order to take advantage of deals, discounts, and perks, maintaining too many open accounts can have a detrimental effect on your credit score.
- Fully Satisfy Debts – Timely payments are key to maintaining a good credit score; wiping debts further reinforces your file. Fully repaying loans and zeroing-out credit card balances illustrates your commitment to credit management, which may ultimately be reflected in a higher credit score. Eliminating balances also frees-up financial resources, which can be utilised in the event of a finance emergency or unexpected expense.
Bad credit loans complement traditional financing offered by banks and other brick-and-mortar lenders. The flexible finance alternative provides quick cash, when a small, short-term loan is all that’s needed to overcome finance challenges. Starting with a simple online application, qualified applicants are eligible for same-day funding, directly to their current accounts.