Loan options for those suffering from bad credit

If you, like millions of other inhabitants of the United Kingdom are suffering from bad credit, you may think that there are simply no loan options available to you, especially when you need them most.

Well, you are WRONG!

Luckily, there are still a few loan options that you can apply for, no matter how poor your credit rating. You can even apply for them if you are blacklisted, have been declared bankrupt or have country court judgments against your name.

In this article, we are going to take a look at the bad credit loans that are available to you. A word of warning. If you already have bad credit, we advise you that if you should take out these loans, you need to use them wisely. There is simply no point in putting yourself in a worse financial position than you were in before you took out the loan.

So only take the loan out if you really need it for an emergency. A trip to Spain is certainly not an emergency. An unplanned medical procedure, paying for your child’s education or fixing a burst geyser is.

Onto the loan options that we offer at Assistant Loans.

Payday loans

Although a bad credit rating might mean that a payday loan could be turned down should you apply for one, more often than not, these loans will be given to you. But what is a payday loan?

A payday loan is a very small loan with a very short term for repayment. In other words, you apply for £1,000 on the 10th of the month which will then need to be repaid by the end of the month once you have received your monthly salary.

Lenders will decide they are able to give you a loan based on a number of factors including your income as well as the amount requested. Of course, you will need to provide them with a number of documents. The most important are your identification, proof of address, bank statements and proof that you are employed. For this, you will need to supply wage slips for the past three months.

Guarantor Loans

To apply for a guarantor loan, you will need a co-signee who will act as a guarantor on the loan. This means that should you stop making repayments, the guarantor will have to make them for you.

Because of this, finding a guarantor can be very difficult. People often ask those close to them to stand as a guarantor when taking out this kind of loan. Note, the guarantor should also be in good stead credit wise. In terms of loan amounts, guarantor loans can range from small to big amounts with various payment terms, sometimes up to 84 months from certain financial institutions.

All the usual documents will be requested to process the loan including your identity document, proof of payment, bank statements and wage slips. Remember, this counts for your guarantor as well.

Homeowner loans

If you already own some property, you might qualify for a homeowner loan, even if you have a terrible credit rating. Lenders will tend to not worry about your bad credit rating because you have a form of collateral in the shape of your home. Of course, you will need to put this up as security when you take out the loan. You will also need to have a steady monthly income to qualify.

Homeowner loans can be for large amounts of money, depending on the value of your home as well as your income. In most cases, they can range from £5,000 to as much as £200,000.

Logbook loans

People with bad credit ratings that own a vehicle have a loan option in the form of a logbook loan. These loans are taken out using your vehicle as security and are some of our most popular loan options.

The amount of the loan given depends on the condition of the vehicle and your monthly income. Generally, however, the maximum loan allowed is around 50% of the vehicle value. The best thing about this loan is that while you sign over your vehicle to the lender for the duration of the loan, you can still use it on a daily basis.

If you default on payments, the lender has every right to repossess your vehicle and sell it to recoup their costs. Logbook loans range from £500 to as much as £50,000 but do vary depending on the lender you apply with.

All the usual documents will be requested to process the loan including your identity document, proof of payment, bank statements and wage slips.

Doorstep loans

These loans are becoming a popular option with those who suffer from a bad credit rating. They are slightly more ‘old school’ in the fact that once you have applied online and been accepted, everything happens in person from that point on.

A lending agent such as ourselves will come to your home to discuss the terms of the loan, explain the payments as well as the duration of the loan itself. They will also come and collect the money every week, two weeks or monthly, depending on the payment scheme decided upon during the initial meeting.

Doorstep loans range from £100 to as much as £2,000 but again, this amount depends on the lender. All the usual documents will be requested to process the loan including your identity document, proof of payment, bank statements and wage slips.

And there you have it, five loan options for those of you stuck in the cycle of bad credit. We cannot stress enough how important it is to make sure that if you do take out these loans, you pay them off every month, on time and the full amount.

By doing this, you will help to slowly turn your credit rating around and get your finances back on the right track!