Loan 1 – Specialist Credit Cards
- Works like any other credit card
- Limits can be fairly low – typically around £1,500
- Conditions regarding applications, e.g.. missed payments and CCJ’s may need to be a year or more old
- Can take a couple of weeks to be approved for the card (or not!)
- APR’s typically 35 – 40%
These type of cards can be an excellent 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 that standard credit cards, the specialist credit card is the most cost effective option here.
Loan 2 – Guaranteed Finance
- Typically from £50 to £10,000
- Requires a friend or family member to guarantee your loan repayments
- Interest rates typically around 700% APR for amounts ranging from £50 to £500, and 50% APR for amounts ranging from £500 to £10,000
If you cannot get a the type of card details above, then guaranteed finance may offer the perfect alternative; though you will require a friend or family member to back your application.
Loan 3 – Doorstep Finance
- Unsecured short term financial options where the lender calls at your home to collect the repayments
- Fast cash available – typically up to £100 to £500
- Repayment periods of up to a year
- Can have high interest rates between typically about 275% and 550% APR
Doorstep finance is another option for amounts ranging from £100 to £500. Some people are put off by the lenders agent coming to their home, but a doorstep is a cheaper option than payday borrowing, especially if the loan is required for up to a year.
Loan 4 – Payday Finance
- Unsecured short term personal borrowing options available online and high street specialists
- Fast cash available – typically up to £50 to £500 in 24 hours
- Short term options, designed to be taken out for only a few weeks – typically up to 4 weeks max
- Can have very high interest rates upto 5000% APR
Payday finance has become widely used as they have been heavily advertised; whilst they offer a fast short term option, they are very expensive, and should be taken out with great care.