As the sole earner or the primary caretaker of your family, you have plenty of responsibilities to fulfil. Managing personal finance is indeed one of them. You cannot take it lightly, or if you do so, then you will have to face the consequences of it.
Nevertheless, there is nothing to worry about. As long as you are earning a stable income, nothing will be complicated for you. Things will become tough when you are unemployed and struggling to control regular or irregular expenses.
At the same time, financial emergencies will keep you in check constantly. As these are unanticipated, preparing for them might be tough. Your inability may take you towards grim outcomes and a very bad credit score is one of them.
It is nothing but a result of your financial problems or some carelessness. In the above discussion, we have discussed the unavoidable problems, but carelessness is another reason for your adverse credit scores.
We have thrown light on unemployment. When you are jobless and not earning a stable income, you still keep shopping unnecessarily by using credit cards. When their bills come against you, you feel helpless because there are no savings and a stable income is already not there. All these things become the reason for bank default, bankruptcy, and sometimes, County Court Judgement (CCJ).
Still, we suggest you not feel too much worried because when there is a problem, a solution will also be there. Here, we are telling you to take out very bad credit loans from direct lenders in the UK.
Why direct lenders only for very bad credit loans?
Before explaining the different loan options available with a very poor credit score, it is necessary to explain why direct lenders only.
Of course, traditional lenders are there to help you. They have been working in the UK marketplace for years with proven records and mountainous trust among the locals. Simultaneously, they can be more traditional in their procedure and during a financial emergency, you may not like their cumbersome process to deal with.
All you want is instant loan acceptance and same-day fund disbursal. Direct lenders here score more than their conventional counterparts. They work with online processes with minimum paperwork and obligations.
During a financial urgency, choosing very bad credit loans from direct lenders would be a smart move. Another reason is that traditional lenders may not agree to assist those with adverse credit scores. They feel more risk in lending them.
On the other hand, direct lenders in the UK have prepared specialised loan offers for them, making guaranteed approval almost the possibility. Still, people with very bad credit ratings have to prove their affordability.
Ideal loan options to avail with very bad credit scores
There is nothing tougher than impressing lenders with records of CCJ or bank default against your name. The flexible lending norms are the prime reasons why you should take out very bad credit loans from direct lenders in the UK.
What about the loan options? Is there only one or multiple options are there? Let us take our discussion further on this part. Actually, if not many, there are a few loan options available to assist individuals with poor credit scores.
A few of them have been mentioned here:
- Loans with no credit check upfront
- Unsecured loans
- Same day loans
- Bad credit loans
- Doorstep loan
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Loans with no credit check
First of all, we want to clarify one thing: no loans are available without a credit check. Checking the credit histories of the individuals is a mandatory process and if anyone promises no credit check, then you need to prevent yourself from that trap.
Genuinely, this concept is more related to no credit check upfront. It means when you first submit your loan application, the direct lender will not go through your past credit score. The lending firm will do a credit assessment later to know your affordability.
It will benefit loan aspirants with very bad credit scores in dual ways. First, they get affordable loans that they can repay easily with no hurdles. Second, there will be a significant improvement in their credit scores, as they are repaying the loan with no miss.
. Unsecured loans
We always suggest people with adverse credit ratings opt for small loans only. Unsecured loans are the ideal option in this regard. In such sorts of loans, the lender does not ask for keeping collateral against the loan amount. These are totally risk-free because you are not going to lose your assets if you default.
However, repaying the loan is mandatory and good for your credit score. Still, at least you are free from any risk while availing of instant funding during challenging financial scenarios.
. Same day loans
Carrying forward the importance of small loans for those with very poor credit scores, we are suggesting one more option. It is none other than a same-day loan. Yes, many online lenders in the UK offer same-day loans as their major products.
It is also a small loan option, available for smaller amounts and duration. You can say that this is much better than a payday loan, which is too much expensive. On the other hand, a loan on the same day is available for a higher amount or something like up to £3000 and for a larger duration, such as a maximum of 12 months.
These loans are ideal for financial emergencies as well as for making a significant small purchase.
. Bad credit loans
Above are the standard personal loan options for those with adverse credit ratings. Now, we will discuss the specialised products. We are talking about loans for bad credit in the UK. Yes, these are dedicated loans for those with past credit issues.
These loans have the following features:
- These are affordable loans, which are approved only after analysing individual capacity and circumstances;
- Approval comes on the basis of recent financial performance not the past one. If you are good on that part, your loan will be approved;
- Soft credit check will be done with no further impact on your credit report;
- These sorts of loans do not require a guarantor or collateral, as these are presented according to individual affordability;
Remember, these will be higher interest rate loans but choosing the direct lenders may bring the benefit of competitive rates than the market.
. Doorstep loans
Last but not least. Doorstep cash loans can also be ideal options for those with major credit issues. These are very small loans where the loan facility will be provided at your home. Repayments are not a concern because the lender’s representative arrives on a weekly or monthly basis to collect monthly instalments.
However, these loans are for only small funding and interest rates may be higher. Choosing online lenders like QuickLoansLender may be helpful, considering the lender offers only affordable loans.
The final discussion
Undoubtedly, loan options are plenty for those with very bad credit scores. They should have the skills to find out the most relevant and useful loan offers. In this process, we do not suggest approaching a broker, as this will increase your financial burden.
Instead, take out very bad credit loans from direct lenders in the UK to have quick, effortless, and reasonably inexpensive financial assistance.
Emma Anderson is a financial advisor at Quickloanslender who always believes in researching hard to know her clients’ financial problems. She takes the time to understand their financial wants and needs to write the blogs on them as the solutions. In her long 14 years of experience, she has written plenty of blogs on the financial and business sectors of the UK.
Emma Anderson has been recognised for her work in financial planning and her blogs are regularly published in the website of Quickloanslender. As far as her educational qualification is concerned, she has done Masters in Accounting and Finance, and done PG Diploma in Creative Writing.
