The 5 Very Best Loans for People with Poor Credit

Do you need money but have a low credit score?

Around 8 in every 10 people in the UK suffers from credit issues.

In some situations, medical emergencies require instant cash. People with bad credit scores often face application rejection. Choose the right loan and amount for poor credit to qualify.

Some loans may help you get instant cash despite your poor credit history.

If you are clueless about the same, read ahead.

Do banks provide poor credit loans?

Getting a loan with a low credit score is challenging with banks. They lack flexible options that cover the need of every individual finances. They reject the application with poor credits immediately.

 However, direct lenders in the UK ensure a flexible turn on bad credit profiles. One can find different options for low credit with the best direct lenders for poor credit history.

You may spot personalised loan offers designed according to your affordability and liabilities. You share the freedom to choose the repayment structure and refresh repayments if financials fall.

You lack this flexibility and freedom with Banks. They do not grant much freedom to individuals. Instead, they provide a fixed agreement if you qualify for their terms.

To talk options, you can tap any as per your requirement and purpose.

Best loan Options for people with low credit scores

If you want to exercise more freedom, improve your loan approval chances, or qualify for lower rates, loans for poor credit scores are apt for you. Here are some options that you can tap for everyday requirements at low credit scores:

1)      Guaranteed loans

These loans help one qualify for a low credit score. The word guaranteed implies one may get the loan by meeting the basic affordability criteria. The lender here does not require a stellar credit score. He provides one if you have a regular or part-time income. Income proof should be authentic.

Unemployed may also qualify for an amount that’s below the minimal income they earn. You can get guaranteed approval loans from a direct lender with proof instantly. You can get up to £3000 for your needs without a guarantor or collateral requirement.

Key attractions:

• Quick and same-day payout
• No detailed credit checks
• 97% approval chances
• Competitive APR
• Unemployed may get one with additional short-term income

2)      Doorstep loans

It is another loan that you may get with poor credit. You do not need to walk out to the lender to get cash. You can get the cash at the door by applying.

You get the loan at your address within 30-40 minutes. It is for individuals needing urgent cash at home or office. It releases stress to get cash for people with mobility issues. You can get up to £1000 for emergency needs. Doorstep loans have higher APR than Guaranteed loans.

However, if you have regular income and limited debts, get it affordably. You can find economic interest rates per your finances by searching “doorstep loans near me” on Google. Several options may emerge before you. Compare the best terms by identifying the APR and interest rates. Identify the repayment type. It may differ from a lender-to-lender. Unemployed, self-employed, and retired individuals can also apply.

Key attractions:

• These loans are cheaper than payday loans
• Businesses and individuals can get these loans
• Home collection services for loan repayments
• Easy to budget for individuals with regular income
• You can get the cash online as well

3)      Short-term loans

Short-term loans are unsecured loans for anyone with reliable income proof. One can qualify for up to 5000 for short- and medium-term requirements. The most common uses of these loans include- medical emergencies, paying credit card debt, car repair, etc.

Students can also qualify for these loans with limited or no credit history. One with regular/ part-time/ benefits can get these loans. Short-term loans are primarily income-based, like- payday loans. The loans help in improving credit scores apart from meeting short-term goals.

Key attractions:

• Get the money within 30 minutes
• All-purpose loan for emergencies
• Income- the prime parameter to qualify
• Multiple repayment options- Monthly/Weekly/ Yearly
• Does not require detailed documentation for loan application

4)  Very bad credit loans

When one talks about these loans, it implies that it is for individuals who have missed payments on loans, utility payments, and credit cards for a long time. Long-term unemployment or no credit history may be one of the reasons for poor credit history.

It is a subcategory of bad credit scores like- fair, poor and very poor credit scores. If your credit history is below 560 (Experian), you have a very bad credit score. The lower your credit score, the lower the possibility of loans, mortgages, or new credit cards.

The best part is you do not need a co-signer or guarantor to get these loans. You do not need to give extra towards brokerage to help you find the right lender. One can get very bad credit loans with no guarantor and no broker in the UK by directly contacting the lender. The process is fast and personalised to one’s finances.

Key attractions:

• Ideal for individuals with a score below 560
• Unsecured short-term loan
• One can get up to £1500 for any small purpose
• Individuals with regular income may qualify
• 3-36 repayment period

5)      No guarantor loans

These loans are also one of the loans that one may qualify for without a third person. If you want to finance a need but do not want to involve someone else in the agreement, no guarantor loans can help. Individuals with fair credit history, low debt-to-income ratio, and sound income may qualify for these loans. In many situations, you do not need security to get a loan.

The repayments on a non-guarantor loan may vary according to the income. You can clear the loans within 4-6 months with a high income. Alternatively, opt for a longer term and pay the amount in fixed instalments for up to 12 months.

Key attractions

• Eliminates any hassle of getting a guarantor
• Keeps your bond with the person intact
• A good income and responsible finances can fetch better rates
• You may get up to £10000 for your needs
• Improves your credit score

Bottom line

These are some loans you may qualify for with direct lenders despite your poor credit history. Every loan mentioned above has a unique function and helps a specific purpose. Explore your options carefully before applying. These loans help you save on the interest costs and improve your chances of qualifying than other options.