Bad Credit Loans: What Are They and Can You Get One?  

Circumstances like – medical emergencies, last-minute applications, bill payments, consolidating debts for credit score improvement, etc., get one worried. The reason is- all these issues require sufficient cash to eliminate the panic.

Late bill payments may lead to penalties, while delays in medical facilities may exacerbate the issue. Keeping track of cash amid official and household expenses is tricky. One often runs out of the same, and waiting until the payment date aggravates the anxiety.

Well, you do not need to panic if you go cashless at any moment. You can still get minimal cash help despite your poor credit history. It is possible with loans for bad credit scores.

What do bad credit loans imply?

Poor credit loans are unsecured external cash facilities for individuals with chequered credit history. It is for those who struggle to qualify and are turned down by traditional lenders owing to insufficient credit scores. Some lenders provide loans to individuals with CCJ, Bankruptcy, missed payments, defaults, and credit card default.

 These are primarily short-term loans for individuals who need quick money without pledging any collateral. The primary criterion for qualifying for the loan is affordability. Loan providers consider the potential of the borrower to pay back the loan in easy repayments by analysing the income. One may qualify for a bad credit loan by revealing income proof from bank statements.

What can you use the bad or poor credit loans for?

As mentioned above, you can tap the loan for critical needs or emergencies. It is primarily for short-term and emergency purposes. Analyse the need for the same by working on your finances. Does your savings suffice? If you want to reserve your savings for a higher life goal, bad credit loans can help you overcome everyday cash issues. Here are some common reasons you can use the loan for :

• Home repairs
• Car accessories or brake repair
• Pay the admission fee
• Plan a business trip
• Buying any business equipment

Who is eligible for loans for low credit scores?

If you need a loan, check the eligibility first. Though different loan providers have different eligibility criteria, here is how you can qualify with Cashloans2go:

• You must be 18+ as a UK citizen
• You should be earning valid income (at least £800/month)
• Host a regular bank account with a direct debit facility
• Have a permanent address in the country

Note that even if you are eligible for the loan, you must ensure you can comfortably afford the loan.

The criteria stay almost the same if you are applying for very bad credit loans from direct lenders in the country.

However, we may ask for an income of £1000 (minimum) to qualify for a small amount with a very bad credit history.

Alongside, if you do not have a consistent income or earn from government benefits, qualifying for an amount above £5000 would require a guarantor.

How to get bad credit loans in the most affordable way?

Before applying for a low-credit loan from any direct lender, explore options. There are different bad credit loans that individuals apply for. Each loan has a unique purpose.

For example- if you need debt consolidation loans for bad credit from a direct lender to achieve your lifestyle goals like- home renovation, you must analyze the most affordable way to get one. Debt consolidation loan reduces additional liabilities by ensuring only one payment per month. It saves interest costs and uses the clocked money on other big life moments. 

To get loans like this, identify the lenders that align with your budget and provide the best terms for your cash requirement.

As a leading direct lender for bad credit loans, we help borrowers with the apt loan and terms by identifying their finances and purpose. By suggesting the right loan type for their needs and designing the agreement per their repayment choice, we help our customers ensure comfortable payments and improve their credit history.

Here is how to get a bad credit loan affordably:

1)     Identify the purpose and cash need

Explore the options that can help you bridge the amount. It can be your salary, part-time income, or savings. You may then borrow only a small amount.

If you lack savings, calculate the exact amount you need for the purpose. It will help you avoid unnecessary interest costs.

• Explore the interest costs and other loan fees

While applying for any bad credit loans like- no guarantor loans, payday loans, guaranteed loans, etc., identify the costs of the loan. Check whether there are any pre-payment costs, missed payment fees, or late fees, apart from establishment costs. The costs make the loan costly.

With us, you get the most affordable terms without unnecessary and surprising costs. We only charge a minimal missed payment fee. If you want to pay early, you can do so without fear of additional payments. We do not charge.

3)     Apply by providing minimal details

Once you find the apt loan terms with flexibility, you can apply. Loan application with us is just a 2-minute process where you need to file basic details.

After the application, we conduct income verification. Here, you need to provide valid income proof to get the loan. It helps us determine the ideal amount to lend per your affordability and spending.

You can provide any income proof in the form of bank statements, like part-time income/regular income from salary/ income from self-employment, and unemployment benefits.

Yes, we consider unemployed benefits and pensions as legal income sources. However, the amount you get may vary as per circumstances.

4)     Get quick cash after minimal credit checks

Once you provide a legal and authentic income source proof for validation, we check and analyse your credit history. No, we do not conduct detailed credit checks that impact credit scores. Instead, we conduct only soft checks that keep your score as-is. It helps us identify the affordability and lend accordingly.

Bottom line

In this way, you can get a loan for bad credit history for your requirements. Check out the best ways to improve your credit history or build one. It will help you qualify for better terms.