At a certain moment of our life, we come across a situation where we have to take financial assistance from our either closed ones or from particularly a standard financial institute. Well, there is nothing wrong in borrowing from someone and in fact, most of the people borrow at least once or twice in their lifetime to solve their financial riddles. However, the problem arises when the person is not able to pay their debt on time and end up hampering their credit report which is one of the most important things that any lender goes through before approving the loan.
Late payments of debts affect the credit report of the borrower drastically and it also lowers down the credit score. Well, this doesn’t mean that the tag of bad credit is permanent. Well, financial emergencies can come at any stage of life. There are ways to improve it but the real challenge is to borrow when you are still under the bad credit zone. Here, this is what we are going to find out. Let’s get started.
- Personal Loan for unemployed
There is no denying the fact that paying up the bills and rents becomes really difficult when you don’t have a job and not having a steady source of income. In a tight situation like this, where it is getting difficult to manage the daily expenses, late payment of bills and debts is quite common. And this affects the credit profile of the borrower badly. So, if the reason for your poor credit is your sudden job loss where you are barely able to manage your expenses and bills, then the best option would be to apply for a personal loan.
- End your sudden financial riddle with the payday loan
If a sudden financial emergency has hit you like a roof leakage repairing, medical emergency, or others and you don’t have enough money in your pocket, payday loans could be a real saviour in such delicate time. This is a type of loan that is basically provided by direct lenders who can approve your request with the minimum paperwork and at the soft credit check. Basically, payday loans are given for a small amount of money and for a short time, so whether you have a good credit score or not, you will get the help easily without any complications. There are many well-reputed lenders in the UK who provide Instant Bad Credit Loans in UK, London Loan Bank who can provide you bad credit loans online with instant decision for approval.
- Guarantor Loans can be the way
Yes, it is true that getting a loan with borderline credit score is quite difficult and the chances will be that banks and other institutes might reject your application. Well, the reason why bank won’t be giving you the loan with poor credit score is that they don’t consider you as a worthy borrower and they don’ want to provide the loan. However, there is a chance where you might actually get a loan and i.e. by providing a guarantor whom the bank will held responsible if you couldn’t pay the loan to the bank or other financial institutes. Having a guarantor helps in gaining the trust in the lenders in providing the loan to the borrower who does not have a decent credit score.
- Loans for CCJ holders
If you due to your bad credit history, you are under the period of CCJ (County Court Judgements) where you have very less time to pay back your previous debts, then you can apply for CCJ loans. These types of loans are basically are given for short amount and comes with a higher interest rate as there is a higher risk involved here. One thing is that for shorter amount, you can get instant approval from the lender but if the amount is comparatively high, then chances are there that your application can be rejected. However, getting a loan during the time of CCJ is nothing less than a blessing in the disguise. Well, it is important for you to know that if cannot manage to pay the debt within the CCJ period, then it will be mentioned in your credit report for many years.
- Secured Loans, worth the risk
Applying for a secured loan can really work if you are not able to borrow from any lenders due to your poor credit. You can provide any of your valuable assets like your property or car for collateral to get the loan. This way, you will also be offered a lower interest rate and you will have adequate money to solve the financial crisis that you are facing.
Wrapping up, these were the types of loans that you can apply when you have a poor credit score. You can go with any one of them that suits your requirement as well as your condition.
Lisa Ann has developed a well-experienced professional career. From managing the staff of more than 50+ loan experts at Fastmoneyfinance to boosting the delivery of various loan offers, she has acquired many challenging roles to come out with the best results for the company. Lisa Ann is a Senior Content Author and the Chief Financial Advisor at Fastmoneyfinance. To back her massive experience in the UK’s financial industry, she has the postgraduate degree and diploma in Business and Finance.