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Bad Credit

If your credit is poor, getting a lender to approve your loan application can be very challenging. Still, it is not impossible. If you know where to look, there are lenders that would be willing to let you borrow money even despite your low rating.

What are Personal Loans

Personal loans usually come from a bank or lender that is used for personal purposes. It could be anything from paying for a car repair, a home renovation, or even a medical emergency. They can be unsecured where there is no asset involved as collateral; or they can be secured too where the loan has a collateral to secure it.

How to Apply For Bad Credit Personal Loans

Start by looking for lenders who are specifically able to cater to bad credit borrowers. Do remember that lenders are putting themselves at risk when lending money to poor credit borrowers. So, expect that they will want to charge high interest rates for these types of personal loans to balance the risk out.

Apply only for those loans that you are qualified for. Find out ahead of time what are the basic requirements that the lenders have set and make sure you meet them. Remember that loan applications mean credit checks performed on your credit record. So, try to keep this minimal to avoid hurting your credit score even more.

Once you do get a loan, make sure to handle it well. Manage your repayments properly. Get them done on time and use this as a chance to improve your credit score. 

Debt consolidation is where you combine all of your debts into one single debt so you only have to make a single payment every month. The new loan often has a much lower interest rate attached to it, which makes it a more affordable option.

It should be noted that this option is only ideal as long as it reduces both your monthly payments and the interest rates involved. So, borrowers are advised to calculate all the costs attached to the new loan to be doubly sure that they are indeed saving money by taking out an umbrella loan to pay off all of their existing debts.

Consolidation Loans and Bad Credit

The problem that a lot of people face when it comes to consolidation loans though is that getting approved for one when your credit is bad is extremely hard. Just like any loan, you will need to have a good credit to be approved for debt consolidation. Lenders, after all, will want assurance that you can pay back whatever they will decide to let you borrow.

Expect that lenders will also look into your employment history or ask for collateral to secure the loan. They might even demand expensive interest rates for the loan you’re taking out just they’re sure that they will get paid. This is also why you have to really ponder if debt consolidation is the best possible option for you.

Where to Get a Bad Credit Consolidation Loans

If you decide to pursue taking a debt consolidation loan despite your bad credit, try checking with credit unions and banks first to see if they can offer you something. However, the chances of rejection tend to be quite high.

You can refer to providers of online consolidation services online too. These are businesses that can get your debt paid off. Just like banks, they will want to reduce the risks involved with letting you borrow money as much as they can. If they do decide to lend you money, expect that the interest rates will be hefty. The same scenario awaits you if you will refer to payday lenders. 

Whether you like it or not, getting approved for a loan will always be hinged on your credit score. If you have not been meticulous at keeping it squeaky clean in the past, know that it is always going to haunt you when it is time for you to apply for financing. Still, if your goal is to get a £5,000 loan approved, there are things you can do that should help you. 

The very first thing you need to do is find out what your score is. Get a copy of your credit report to make sure that all the entries are accurate. If your need for additional funding, isn’t immediate, it will be worth your while to try and work on your credit score. 

There are a number of things that you can do which might help repair your damaged credit. For instance, make sure to pay your bills on time. Avoid missing payments. Be sure to avoid late ones as well. If you will keep this up for a few months, this can have a significant positive impact on your credit score. 

If you have several lines of credit that are open, it may be a good idea to close some of them. While open lines of credit can look good for your credit profile, having too many of them could also mean that you may be way over your depth in debts. Paying off some of them before attempting to sign up for a £5,000 would help you get approval. 

If you have a regular job now, it might do you some good to look for another on the side. Lenders will generally look at how much you are earning to decide whether you can afford to pay back a loan or not. A £5,000 loan is a substantial amount and without a good credit score, lenders will likely think twice of granting this to you. The best strategy for you really is to work on your credit. Get it fixed to an ideal number and earning the lender’s trust should come naturally afterwards.

Loancaptive’s FAQ’ S

Here are some of the frequently asked questions of our valued customers.

Q: How much money can I borrow?
The cash amount that you can borrow depends on the loan type that you have. When you have a short-term loan, the maximum amount to borrow is $995 while personal loans range to $1,000 to $25,000.


Q: Do you have personal loans for bad credit?
Yes, our loan types are suitable for everyone. Even if you have a history of bad credit, we will help you find a lender and loan that based on your purpose.


Q: What are your unsecured loans?
Our unsecured loans consist of credit cards, personal, and term loans. We suggest to fill out our application form to provide you the best-unsecured loan.


Q: How many months is your repayment period?
Our repayment period is from 3-18 months. You can choose your repayment method upon your application.

What Are Unsecured Loans?

There are different types of unsecured loans. The common unsecured loan is a credit card where borrowers can use their credit limit again once repaid. Another type is a payday loan which is applicable to employees or anyone who have a proof source of income. A payday loan is a short-term loan that takes 15-30 days only. There are also signature loans, term loans, and students loans that are categorized as unsecured loans.

Unsecured Loans Guide

We provide you the unsecured loan you need. In order to get the money you want, you must fill in the details needed in our application form. Then, we will evaluate and give you a direct lender for your purpose.

Unsecured Loans Guide

Unsecured Loans Guide

Unsecured Loans Guide