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Bad Credit Loan Uk

Finding Funds: Bad Credit Loans in UK

If you reside in the UK and your credit is not perfect, then the standard methods of getting funds are not an option for you. Most banks, regardless of the country you are in will not approve applications from people with bad credit. Funding can still be located for those who need a bad credit loan in the UK.

Compared to some countries like the US, UK financial institutions are not regulated as much. The annual percentage rate does not have a maximum level. Therefore this option must be carefully considered prior to taking action.

Getting a bad credit loan in the UK will cost more because the interest rate will be higher than standard loans. There are three types of loans. Doorstep loans are the most expensive with an APR of approximately 200%. The second type is a guarantor loan which has an APR of approximately 42% and logbook loans with a 30% interest rate but using collateral such as a car.

Doorstep loans

A UK bad credit loan candidate can get from £80 up to £1500 quickly if the person has a job and income coming in regularly. This type of loan is given without a credit check and without any collateral so assets are safe. It is an unsecured loan for bad credit UK residents. The decision regarding approval is based on the applicant’s ability to pay back the borrowed amount and his or her monthly income. Once approved, the funds are deposited directly to your bank account by the lender. The benefit of this type of loan is that people who have had late payments, IVAs or CCJs can easily get funds to pay bills, home repairs or cover other expenses.

Logbook Loan

A logbook loan is a secured bad credit loan in the UK. This type of loan is based on the car you own. The information to be supplied to the lender includes a VIN number, registration proof, engine ID and proof of insurance on the vehicle. Anyone with a negative credit history is eligible to apply and qualify to receive funding. This type of loan can make funds available in an easy step like submitting your automobile paperwork. The APR with a logbook loan is significantly lower than any other type of loan because of the collateral required.

Guarantor Loans

Guarantor Loans are UK no credit check loans that anyone is eligible for as long as someone can guarantee the funds will be paid back. The person who is a guarantor is responsible for repayment if you default on the loan.

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Financial Dictionary: Accounting, Business & International FinancePersonal Finance - Loans & Mortgages