Practical tips to help you improve your credit rating and avoid expensive high interest loans
The bad credit personal loans market is one to be very careful of – high fees and interest rates can mean that a poor decision can turn out to be very costly.
To help you make the right decision we summarise here the four main types of personal loans for bad credit:
Bad credit credit cards can be a good option if you do not need to borrow too much and if your missed payments were over a year ago. Whilst they are more expensive than standard credit cards, the bad credit credit card is one of the most cost-effective bad credit personal loan options available.
To see how they can help to rebuild a credit rating, please click here.
If you cannot get a bad credit credit card, or need to borrow more than £1,500 then a guaranteed loan could be a good alternative; though you will require a friend or family member to back your application.
The doorstep loan is another option for a £100 to £500 loan. Some people are put off by the lenders’ agent coming to their home, but a doorstep is a cheaper loan option than a payday loan, especially if the loan is required for up to a year.
They have a much higher interest rate than a bank loan or a credit card. Find out more – https://www.moneyadviceservice.org.uk/en/articles/home-credit-or-doorstep-lending
Payday loans have become widely used as they have been heavily advertised; whilst they offer a fast short term loan solution, they are very expensive, and should be taken out with great care.
Everyone has a different situation so we appreciate that there is no one type of loan that will suit everyone.
Find out if payday lenders really deserve the bad press they receive by clicking here.
Whilst we understand the urgency required on occasion, it is never worth risking your financial future for the sake of obtaining a loan that may cause more trouble than it saves. We can help you get a personal loan for bad credit through our range of some of the lowest APR loans available in the UK bad credit market.
Alternatively, see how much you can afford to borrow with our loan calculator.