How to Find £2,500 Loans Without Good Credit
Trying to borrow £2,500 from anyone when you have bad credit can seem like an impossible goal, especially if you’ve already been turned down for other funding types in the past. Despite your past financial woes, it’s important to understand that there are some lenders who are willing to look past your low credit score and base their decision on other factors.
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).
Of course, applying for a loan from a bank or conventional lender is going to give you the lowest chances of approval. On the other hand, the alternative lending sector provides a few options to borrowers who are unable to find funding elsewhere, as long as a few basic conditions are met.
In fact, you can be approved for a £2,500 loan just as quickly and easily as you can a £1,000 loan in many cases. So, what’s so special about the number £2,500? Well, many alternative lenders will set their cap for each individual loan at either £2,500 or £5,000, depending on their policy or your overall income.
Since £2,500 the maximum you can be approved for in many cases, and since more people will qualify for this amount, it makes sense to aim for this optimal yet obtainable amount in your pursuit for short-term funding. With that said, here are some of the ways you can find £2,500 loans regardless of your current credit situation.
1. £2,500 Payday Loans
Payday loans are the number one option for anyone who needs money fast and doesn’t want to endure the embarrassment or hassle of having a credit check done only to be denied. Here are a few of the key reasons why same day loans for bad credit are the top option for loans in this price range:
- Payday lenders do not use your credit as a primary determining factor during their deliberation – they only consider the amount you’re earning on an annual or monthly basis when calculating your repayment obligations. Instead of your credit history, they’ll consider your financial standing and income. Unlike conventional lenders, they won’t assume that you can’t make repayments on time, based solely on your credit score.
- Payday loans are the most reliable way to borrow money when you have poor credit because they offer the highest odds of approval. This is true even when your credit history isn’t great. So, when you apply for a payday loan, you should ask for a loan that offers a high chance of approval because it gives you the best chance of getting a payday loan that fits your needs.
- You can be approved and funded on the same day – Payday lenders have online application portals that let you sign up and receive instant approval in seconds or minutes. Most of these applications are free, so you won’t need to pay a fee to get started. You can borrow up to a maximum of £2,500 or £5,000 in an instant. Once you are approved, you’ll receive a loan agreement via email that specifies the terms of your repayment obligations, such as the due dates and monthly payment amounts.
- You Only Need a Job and a Bank Account – To be approved for a payday loan in the UK, you’ll only need two things: proof of income and a bank account that’s in good standing. The payday lender will calculate how much you’re able to borrow based on how much you earn.
Statistically, applying for a payday loan is the most likely course of action for people with poor credit due to the ease of approval, flexible payment terms, and the ability to get your money on the same day.
2. £2,500 Personal Loans & Installment Loans
The loans are similar to payday loans except they’re usually available to people with okay-but-not-good credit. If you have absolutely horrible credit but you can prove that you have a decent source of income, a payday loan would probably be a more suitable product for you.
However, if your credit score is in the upper 600s, you might still be able to gain approval for a personal or installment loan. Keep in mind that applying for one of these loans might involve a soft or hard check on your credit.
Furthermore, while payday lenders do not report to the credit reporting agencies, many lenders who provide personal and installment loans will, in fact, report your payments to those bureaus. That can be a bad thing if you wind up late on one of your payments because the effect will be felt on your credit score in a span of days or weeks.
On the other hand, if you make your payments on time, it could be a good thing because it means this kind of loan will also help you build and elevate your credit score. While payday loans won’t help you build your credit, they also won’t hurt it as quickly as a conventional personal loan either because your payday loan debt would usually need to expire and then be sold to a collection agency before it would post as an item on your credit report.
If you default on a personal loan or instalment loan, the effects of that could show up on your credit report within a few days or weeks. That’s another reason why personal and instalment loans rank behind payday loans on this list.
3. Borrowing Money From Family Members and Friends
If you’ve already applied for the other kinds of quick loans listed above, you might be able to convince one of your family members or friends to let you borrow £2,500. When setting up an arrangement like this, it’s important not to let the status or length of your relationship affect the logic of the agreement.
The number one rule when borrowing money from friends and family is to not let emotions influence your business-related decisions. You might be able to sweeten the deal and motivate them to let you borrow £2,500 by agreeing to repay a high return. For example, you could offer to pay back £3,000 over the course of 12 months.
The main question is whether you can handle your loan payments — it doesn’t matter how you come up with the cash, just how much you borrow and at what rate. It’s possible to live with your loan payments for as long as you need, but it will be a little more expensive than a fixed-rate loan if you agree to pay your friend or family member an above-average APR in exchange for their help.
The other possibility is to ask for an even bigger loan – like a credit line, and then have your friend or family member act as a co-signor or co-applicant. That could drastically improve your odds of approval and increase your chances of getting the full £2,500 that you’re after.