Jon's Blog

Practical tips to help you improve your credit rating and avoid expensive high interest loans

How To Decide On The Right Poor Credit Loan in 5 Easy Steps

Borrowing money has never been easier than it is today. With loans available 24/7 via the click of a button, by far the most difficult aspect of applying for a loan is choosing the best option. Read on to see our 5 step guide to choosing the right poor credit loan.

It is still almost too easy to borrow money these days – many loans are available online and getting a loan could be a simple as pressing a button!

It is therefore very easy to make a mistake and take out the wrong loan which could turn out to be an expensive mistake!

So to make sure you do not do this, have a look at our 5 easy steps on how you can make sure that you do take out the right loan for you:

Step 1 – Ask Yourself the Question “do I need to take out a loan at all?”

It has become all too common in today’s society to borrow; mainly because it’s now really easy to borrow money compared to 50 years ago.

The problem is though that borrowing money does costs you money, money that could be being spent on 101 other things.

So before you look at what loan is right, first really challenge yourself whether you actually do need to borrow any money at all:

“can I wait till next month when a loan would not be necessary?”

“do I really need to replace / buy this?”

“could I get some overtime at work which would maybe help me pay for this?”

Step 2 – Ask yourself “what is the minimum I can get away with borrowing?”

Simply, the less you borrow, the less you are going got have to pay back and the more money you have to spend on the nicer things in life.

So maybe there was not the option of not getting the loan at all; but hopefully you have now thought of a few ways that could mean minimising the amount of money you do need to borrow.

Step 3 – Work out your income & expenses and how much you can comfortably afford to pay off per month

One big mistake a lot of people make is over estimating the amount they can afford to pay per month; for it’s easy to forget about the many unplanned expenses that turn up month by month, plus other things like Christmas and holidays.

So list down you income, and then all expenses that are likely to come up every month; and everything that you are going to need to budget for.

Then this should give you a much better idea as to the amount you can comfortably afford to spend per month on your loan repayments.

Step 4 – Research all the different options for borrowing money

There are a lot of potential ways that you can get money even if you do have a poor credit rating; then main ones being:

  • Bad credit personal loans
  • Credit cards
  • Pawn Shops (Cash Converters etc.)
  • Borrow money from friends of family
  • Pay day loans
  • Doorstep loans
  • Bank loans

If you have done your research and are aware of the different options then you are more likely to then make sure you get the right loan.

We specialise in a type of personal loan that requires a friend of family member to guarantee the loan for you . These are better value lower cost poor credit loans, but you do need a friend or family member with a good credit history to support your application.

Step 5 – Make multiple loan applications

Making a number of applications is important, for then you have genuine choice.

How many applications you make is up to you; we would not recommend too many for otherwise this can become a bit time consuming filling out lots of forms.[vc_separator color=”grey” style=”” el_width=””]

If you would like to consider a personal loan, then our one simple form will send your application to all the top poor credit loan Lenders in the UK

So you get access to the whole market quickly and easily. You will then start getting loan offers directly via email within minutes of submitting your application.

Or to see how much a loan would cost you and to start the application process see our loan calculator[/vc_column][/vc_row][vc_separator color=”grey” style=”” el_width=””]

[/vc_column][/vc_row][vc_separator color=”grey” style=”” el_width=””]Recommended Further Reading

[/vc_column][/vc_row][vc_separator color=”grey” style=”” el_width=””][/vc_column][/vc_row]

Jon Edward
Jon Edward
Passionate about helping people find options, when on first glance there do not appear to be any.

Leave a Reply

Your email address will not be published. Required fields are marked *