If you have a poor credit history, it can be difficult to obtain a personal loan. At Personal Loans Now, we offer a range of unsecured instalment loans for poor credit. There are many options out there available to people with bad credit, and we could offer you an instant decision when you apply online today.
What are Unsecured Instalment Loans for Poor Credit?
In order to take out an unsecured loan, you don’t have to have any assets to offer up as collateral in case you fail to repay the loan. The lender will instead rely on your credit report and your income and outgoings to build a picture of how much of a risk you are.
An instalment loan is a short-term or long-term loan which has a pre-agreed payment plan attached to it. Once you’ve been approved for a loan, your lender will set out the dates in which you’ll be required to repay portions of the debt, usually monthly.
An unsecured instalment loan, therefore, is a loan that uses your creditworthiness to determine whether or not you are eligible for a loan, which is paid back over a set period of time.
When you approach lenders for an unsecured personal loan poor credit will be a determining factor in their decision. You can get approved for an unsecured loan with bad credit, but you could end up paying a slightly higher rate of interest. This type of credit is a bigger risk to the lender, as, if you don’t repay the money, they have nothing to collect to make back the funds. In this case, lenders will perform incredibly detailed checks to be sure they are lending to trustworthy borrowers.
Can I Borrow Unsecured Loans for Poor Credit?
As a direct, FCA approved lender and a premium new-generation broker, we will help you find a loan which best suits your requirements and financial situation. We’ve teamed up with Monevo, who have a huge panel of FCA approved lenders ready and waiting for your application.
Remember, the best rates are usually reserved for those with a stellar credit history. If you do need an unsecured personal loan poor credit will bump up the rates, but that doesn’t mean you won’t be approved. If you’re concerned, it’s worth asking a lender for a quote. They will perform a soft search on your credit file and give you an idea of how likely you are to be approved. If you are pre-approved, this is not an acceptance, merely an indicator for you to make a decision on whether or not to continue with an application.
Alternatives to Unsecured Instalment Loans for Poor Credit
While we do endeavour to help as many people as we can, there might be a chance that you won’t be able to take out a loan. In this instance, we recommend that you work on improving your credit score. There are some steps you can take to do this:
Check your credit report
You can check your credit report for free online. It’s worth looking over the three main credit reference agencies. Not all lenders use the same agency to access your report, and each file will have relevant information. Do this as often as you need to – nobody can see you’ve looked at your credit file except the agencies.
Get on the electoral roll
When you register on the electoral roll, your details are registered on your credit report, which makes it easier for lenders to verify who you are.
Pay your bills on time
Prove to companies that you’re reliable by ensuring all your bills are paid on time, in full.
Use available credit wisely
Try and keep your credit utilisation to a minimum (25% is ideal). For example, if you have a £1,000 credit limit, you should try not to use more than £250 of it. It shows you’re being responsible and only using what you absolutely need.
If you’re struggling to keep your head above water, contact a debt advice charity for professional, confidential help: don’t let it get any worse.
Applying for Unsecured Loans Poor Credit Score
If you’re looking for a loan and you have a poor credit score, you could apply for a guarantor unsecured loan or an unsecured, no guarantor loan. We would rather assess your affordability as opposed to relying solely on your credit score, so there’s no hard in applying.
Personal Loans Now could offer you between £2,000 and £25,000 in your bank account today, if you’re approved. If we can’t offer you a loan directly, we’ll put your initial application through Monevo, where you’ll have access to over 50 different FCA approved lenders, improving your chances of approval. Apply today for an instant decision!