News Flash – Not All Loans For Poor Credit Are Bad

News Flash – Not All Loans For Poor Credit Are Bad

Loans for poor credit such as payday loans take a constant bashing in the media, but we’ll show you how you can safely find a loan.

With so much negative publicity it can be all too easy to steer clear of anything with the bad credit loan tag. Is this the right thing to do though?

The following article focuses on 3 of the best current options and highlights why a little bit of homework can save you a lot of money!

Approach payday loans with caution

Before we get into our recommended loans to look at, a quick note about payday loans.

Payday loans should certainly be approached with caution.

With very high APR’s, fees and charges, other options are readily available and should always be explored first.

Please Note – Some ‘bad credit, credit cards’ are now even more expensive! Click here to find out more.

Our list of the top 3 loans for poor credit which are currently available:

Loan No. 1: Guaranteed Loans

guaranteedThe majority of problems relating to our chances of getting a loan from a bank or building society relate to our credit ratings. Simply put, if you have a bad credit rating, there is every chance your bank will not grant your application.

One way to avoid this problem is to turn to a guaranteed loan. Guaranteed loans take the borrower’s credit rating out of the equation by asking for a third party (normally a friend or family member) to guarantee the loan repayments.

Key benefits of guaranteed loans:

  • Because there is no credit scoring, a poor credit rating will not be an issue
  • They are unsecured loans which can be available for sums of up to £10,000
  • Many lenders do not impose early repayment penalties
  • Successful repayment of your loan will allow you to rebuild your credit rating

For more information on guaranteed loans, please take a moment to visit the dedicated Wikipedia page by clicking here.

Loan No. 2: Doorstep Loans

Doorstep loans are very traditional loans that work just as you would imagine. Typically available for smaller sums of up to £500, once the loan has been agreed, an agent of your lender will visit your house on a weekly or monthly basis to pick up the loan repayments in person.

Key benefits of doorstep loans:

  • The majority of loans do not impose any charges
  • Many loans do not require a credit check during the application
  • No third party (i.e. a guarantor) needs to be involved
  • A complete cash transaction (loans and repayments are often available in cash)

For additional impartial information relating to Doorstep Loans, please view the Citizens Advice Bureau guide taking an in-depth look at Home Credit & Doorstep Loans.

Loan No. 3 – Credit Unions

Credit Union LogoCredit unions have been around since the 1940s but have recently received a significant boost in popularity.

Put in place by people with a common interest, they offer a range of financial services including low-interest loans, savings and even bank accounts.

Key benefits of Credit Unions:

  • Compared to payday loans, credit union loans are far cheaper
  • Credit unions are non-profit
  • There are fewer fees involved
  • Because they are community-based, they are typically very flexible with their loans

To find out more about borrowing from Credit Unions, please click here.

We offer an unrivalled selection of loans

We believe it is important to put our customers in direct contact with professional quality lenders.

Avoiding big fees, charges and interest rates can save a huge amount of money and our loan application system will put you straight through to the UK’s very best bad credit lenders.

Firstly, use our loan calculator to see how much you can comfortably afford to borrow, once you have done this, then complete our simple application form to submit one application to over 10 lenders simultaneously.

Our lenders have all been highly vetted and within just a few minutes of submitting your application, the loan offers will begin appearing in your inbox and you may be able to obtain the same day payout!

Jon Edward

Happily married with two wonderful girls. Love cycling, curry, and when I get the chance - loud music! See Jon's Profile Page

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