Apply Now

It is not hard to believe that many of you struggle to maintain a good credit score. Whether you apply for a short term or long-term loan, a lender will look over your credit file to check if you have been loyal to your repayments. While default in repayments is the leading cause of a poor credit score, it can also be due to some other reasons like identity theft, erroneous repayment default, incorrect contact details etc.

Well, whatever the reason, you will get a loan a bit high-interest rate if your credit report is not stellar. Although online borrowing has made it easier for you to take out a loan despite a poor credit rating, you should still try to improve your credit rating to get more attractive deals. Most of the people think that you can borrow money only for the short term in case of a bad credit rating. However, you can apply for a loan for a longer-term.

Small funding sources

If you need money to fund a smaller expense, you can apply for doorstep loans. All you need to do is filling out the online form. Once your application is pre-approved, one of the executives of direct lenders will visit your home and look over your bank statement to see if you have the repayment capacity. Most of the borrowers fear that they would lose their credit score because whenever the lender checks your credit file, it will leave search footprints.

If you do not want to lose your credit score while applying for a new loan, doorstep loans with no credit checks will be an ideal option. When you put in the application, the lender will immediately schedule a visit to look over your income statement to assess your affordability. As the lender will not run a hard credit check, it will be processed quickly.

However, no credit check does not mean that your lender will ignore your credit report entirely. It means the lender will go through your credit file, but it does not leave hard search prints. Soft inquiries do not show up on a credit report, while hard inquiries continue to exist for six years.

Large funding sources

Not only does online lending intend to help you tide over during small financial needs, but it also focuses on funding your large expenses. Whether you need money for planned expenses or unforeseen expenses, you can take out guaranteed loans. Guaranteed loans are often confused with guarantor loans.

These loans do not require you a guarantor, nor do they require collateral. Here guaranteed means guaranteed approval. If you have a low credit rating, you can apply for guaranteed loans for bad credit. However, note that guaranteed approval does not mean 100% surety of signing off on your loan application.

Of course, a lender will go through your current financial condition to ensure that you are taking on debt beyond your affordability. While small loans like doorstep loans are paid off in a lump sum, large loans like guaranteed loans enable you to repay the debt in fixed monthly instalments.

Important points to remember

Whether you are taking out small loans or large loans, you will lose your credit score if you fall behind repayments. Your lender will not report credit reference agencies of your default until 30 days in case you make a default, which means it will not leave an impact on your credit score if you pay down within that period.

However, interest will accrue, adding up the cost of the loan. If you suspect you will not be able to pay off on the due date, inform the lender before the loan become overdue because past-due loans ask for interest penalties and late payment fees. Informing your lender beforehand will help you get a solution. The lender may extend the due date or put you to another repayment plan.

Even if you have a low credit rating, you can take out both short-term and long-term loans, but remember that you keep up with repayments, so you improve your credit score and could borrow money at lower interest rates down the line.