Bad credit is bad. With time, it is going to get worse. And chances are, with the bad credit score, other good things about your good financial life may turn a little sour.
But that is completely natural. Bad credit issues are common problems. In the UK, over 5 million credit card holders suffered poor credit issues as of 2022. You see that it is almost a general issue in the world of the British Economy. We can still fix the conditions of these scores by implementing healthy strategies. One of them is using a bad credit loan.
But the problem (or the hesitation?) is you do not know if a bad credit situation will get you a guaranteed loan. And this can worsen when you suffer from extremely bad credit scores. We can stick to the remaining part of the blog to lift our spirits on this matter by knowing how we may still get a loan with an extremely bad credit score. Read on.
What Is an Extremely Bad Credit Score? When we get to experience the word ‘extremely’ with credit scores, then we might not be looking at a critical situation. The bad credit score, as well as the very bad credit score, are quite the same, with the latter being a little too harsh on your finances. In the UK, people follow the Experian standard of credit scores. The milestones for these two types of credit scores are offered below:
If you have a score from anywhere from 720 to 561, then you can say you have a bad credit score. However, a score of 560 or lower than that up to 0 (560-0) is considered a very bad credit score or an extremely poor credit score.
You may know that bad and extremely bad credit scores will make you pay extra. There are penalty charges you should pay when the credit score goes low. Added to that, you will miss out on the credit card rewards and discounts as well.
- What Is a Bad Credit Loan, and Why Can We Make It Guaranteed?
A bad credit loan is an unsecured loan meant for people with a poor credit score. If you suffer from bad credit, you might want to take out this loan.
Many will think (because it is natural) that a bad credit loan is mythical and that you cannot get it for your poor credit score. Although that idea is true to some extent, you can still get guaranteed acceptance loans for really bad credit when you share your income details with your lender. If you can manage the repayment of the loan in the set instalments by what you earn, then lenders will make a soft credit check instead of a hard credit check. This offers you a full guarantee of getting the loan.
- How to Look for an Extremely Bad Credit Loan and Borrow One Fast
You need to be conscious to get the loan. You need to learn more about the lending practices and repayment terms as vividly as you can. Making your research before looking for a loan might help you borrow money more effectively. You may do part of that research here below:
- Find a Direct Lender Website
We are a direct lender, and we say this because of a very practical reason. It is because bad credit loans from direct lenders can come with more borrowing perks. Of course, other lenders can offer you options that are unique.
However, direct lenders are lenders who are entirely focused on designing and delivering loan products to borrowers. You may probably know that direct lenders conduct the whole lending process online, and they can be quite fast in disbursing money. Added to that, you may get more than one repayment package with these lenders to find a better and cost-effective way to repay your bad credit loan.
- Use a Loan Calculator
It is a good practice that you know your borrowing limits. To become aware of that, just go ahead and use a loan calculator to understand if your income can repay the amount of loan you have applied for in the set instalments. Since you get more than one repayment package with us, use each of them until you find a comfortable rate.
- Arrange All Your Income Details
We told you already that bad credit loans from direct lenders are offered in terms of your income statement. We need official evidence of your income statement to understand how much you earn and if your earning is live. You must share with us your updated income documents where the name of your employer is mentioned clearly with the amount of your salary package too.
- Update Your Credit Score
You have to make your credit score updated. An updated and fresh credit score helps us lenders understand your financial behaviour. We are not saying that the process is going to interrupt lending. All we are saying is that we can give you the correct loan product with the help of a refreshed credit score.
- To Conclude
If you have problems understanding the bad credit loan, then it is time to understand that loans are offered chiefly by income and not always by the credit score itself. Yes, it comes under a formal process. However, it is not directly connected with the lending process if you share your income.
Another way to get loans in this condition is to look for alternative loan options. Short-term loans such as payday loans or small loans can work well to provide you with money in a bad credit situation.
Kindly note that you may get a loan with no credit check if you are not a credit card holder. Contact us for more information like this and to clear your doubts. We are always here to help you out.
Hi everyone, I am Lukas Thomas. I am a professional writer and author with having specialisation in the UK financial sector. I have more than 13 years of experience as the financial writer and hope it will continue longer. I have done my post-graduation in Masters of Business Administration (MBA) in Finance. Currently, I am performing my responsibility as a Senior Loan Expert in Fundingpeer, which is the fastest-growing online direct lending company. My job is to prepare borrower-friendly loan deals as per the company’s guidelines. I also write research-based blogs for the company’s official website. You can read them and gain knowledge on any loan product.
