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Borrow £500 for 4 Months, Four Monthly Repayments of £215.81 Total repayment £863.24 Interest Rate PA (fixed) 270.10% Representative APR 997%
Safe Loans for Bad Credit
If you have been turned down by every bank and brick-and-mortar lender that you have applied for because of your bad credit rating, it’s easy to surrender and loose hope on the idea of obtaining a reliable loan – one that is safe and reasonable and coming from a legal and honest credit desperate loans provider. But don’t give up on your quest just yet because the truth is there are plenty of safe loans for bad credit in the UK and many of them can even be accessed online with ease.
Now while they may have higher interest rates than standard loans offered to people with good credit ratings, they are still financially reasonable options in times of emergency situations. The most important thing that you need to bear mind always however, is to make sure that the kind of credit product that you will be applying for is 100% legal and safe for use and not some gimmick used by elicit lenders to lure unsuspecting borrowers into exploitative loan terms and conditions.
With that being said, here are some effective steps that you can follow to make sure that you will be taking out genuine safe loans for bad credit.
Research on lenders that provide safe loans for bad credit
The best way to elude loan sharks and other predatory loan lenders that prey on unsuspecting borrowers who have bad credit and desperate for extra funding is to do some research on the available options that are legit before you make an application. The rate and terms of your loan will also be a whole lot better if you take as much time needed to find out who the reputable lenders are and how you can qualify for their affordable safe loans for bad credit.
When you do your homework on a particular lender, be sure to verify if its authorized by visiting the Financial Conduct Authority or FCA’s website and see if the company’s name is listed. If its not, then there is a big chance that it’s an instant loan shark or some form of illegal lender. You can also check out the Trading Standards to see if their are any complaints coming from its customers.
And don’t forget to ask any of your friends, co-workers, or relatives who have had the experience of obtaining safe loans for bad credit. Try to visit review sites and forums as well. You can easily search for popular customer review sites in Google and there are also plenty of them in Facebook. Disgruntled and offended customers tend to voice out their bad experiences online and you can rely on their testimonies to avoid dishonest lenders.
Determine the available safe loans for bad credit options
Now if you have bad credit, the available lenders and credit products that you can access will be relatively fewer compared to a borrower who has good credit. Nevertheless, there are still options that you can consider and knowing what they are and how they work will help you land the best possible deal. Some of the most popular safe loans for bad credit that you can consider include:
Guarantor Loans. If you want to take out solution safe loan that will allow you to access significant amounts of borrowing with reasonable rates and terms even if you have bad credit, then guarantor loans are options that you should strongly look into. The most important requirement for the type of funding is having an eligible guarantor who will co-sign your loan transaction with the agreement that he or she will be legally liable to cover any remaining balance once you, the primary borrower, will default from your loan.
Secured Loans. These are safe loans for bad credit that provide the largest borrowing amounts and lowest interest rates that people with less-than-stellar credit ratings can qualify for. This is because the loan agreement is secured on an asset, typically your car or home, that will serve as small collateral once you decide to bolt out from your loan and its repayments. So if you can’t pay back the money that you borrowed, the lender can simply seize the collateral and use it for whatever means necessary to recover the unpaid debt. This kind of arrangement gives lenders the security they need to grant larger borrowing amounts and low interest rates to people who had problems paying off debts and managing credit accounts as reflected from their bad credit rating.
Short-term online loans. If you are not looking to secure a large loan because perhaps you just need a few or several hundred pounds to keep yourself financially afloat until your next pay check or scheduled earnings arrive, there are also plenty of short-term online loans that will help satisfy your specific funding need. From payday loans, installment loans, to doorstep loans, there are a number of these safe loans for bad credit that you can easily take out from a large abundance of online lenders that provide quick and seamless credit transactions.
Try to figure out which of the available options available in the market are ideal to your present needs and circumstances. Then check out the basic eligibility requirements so you will know if you are qualified to obtain them. Once you have determined these two important considerations, this would then be the best time to search for the right lender that provides the best possible deal.
Safe loans for bad credit should be tailored to your circumstances
Safe loans for bad credit won’t jeopardize your financial health and your already tarnished credit rating. This means that they are credit agreements that are ideal to your present financial circumstances. The repayments of your loan are therefore reasonable and suitable to your present earnings and outgoings.
And because safe loans for bad credit are legal credit products, they are also regulated by the FCA and are subject to certain rules and regulations such as:
Free from any form of hidden fees, charges, and rates. Lenders are legally obliged to accurately present any and all fees and payments attached to their loans. Every potential cost and payment should be stated clearly to the borrower before he or she signs the loan contract.
Price caps. The FCA has also established price caps or restrictions on how much lenders can charge borrowers for their credit products and services. The total cost of safe loans for bad credit should never be more than 100% of the entire amount that is borrowed. This means that if you borrowed £250, your total bill should never reach £251 or more. It should always be £250 or lesser.
Subject to affordability checks. While safe loans for bad credit won’t check your credit report, they will assess your present income and expenses. This is designed to ensure that you are financially capable of paying off your debt and help you avoid shouldering a loan agreement that will leave you in financial ruin.
And finally, make sure that every payment you make will be recorded in your credit file. Safe loans for bad credit are designed to help you get back on track financially and rebuild your credit rating.
5 most recent personal loan reviews
I love CSC loans I have been with them nearly three years, need a top up as my son is getting married. They where brilliant as usual, no problems, done so quick - they were my life savers when needed most, thank you.
Review posted by Mary Hartnoll, Canterbury
Ease Of Use
Value For Money
As guarantor for my daughters, loan the service we got was quick and efficient, did checks, asked questions and all was sorted very quickly, would definitely recommend Together loans to all.
Review posted by Susan Mills, Darlington
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Value For Money
Brilliant service. The application process was a doddle, the Shawbrook representative who called me was polite, understanding and cheerful. The whole thing (from starting the application process to receiving the money) took around 3 or 4 hours. Very quick and efficient and no long or silly forms to fill out. Just what was necessary. Am very pleased I chose Shawbrook.
Review posted by John Marcus, Surrey
Ease Of Use
Value For Money
Representative 277.5% APR
Representative Example: Borrow £700 and pay £111.27 per month for 12 months at an interest rate of 140% per annum (fixed).
The total charge for credit is £635.24 The total amount repayable is £1335.24. Representative 277.5% APR (variable). Your APR rate will be based on your circumstances
Non-payment could have a negative impact on your credit rating and have increased charges and interest rates.