Similar to you, many Brits have a bad credit history. This could be due to a variety of factors, such as late payment of a cell phone bill or heavy credit use.
While having a low credit score is by no means ideal, it need not prevent you from obtaining a loan or other form of credit.
As such, if your credit score is very good then your loan application will more likely to be easily approved for a loan and you can access the best interest rates too. However, there are also options available if you have either a bad or limited credit history to borrow money when you need.
Loan Pig is a direct lender and also a loan broker who can offer you access to the largest panel of lenders of the UK to find for you the best loan deal that is available. You can visit the website https://www.loanpig.co.uk/short-term-loans/ to know more details.
Now, there are loans tailored to people having credit problems too. If you too have a bad credit rating in that case, you can consider the following 5 different types of loans as they are especially designed to help people who are not having a perfect credit score.
GUARANTOR LOANS
A guarantee essentially serves as a lender’s insurance policy; if you are unable to repay the loan, the guarantor agrees to do so on your behalf.
When you have a guarantee backing your application, lenders are less likely to place a high value on your credit score, which makes it much easier to be approved for a guarantor loan even if your credit score is low.
PAYDAY LOANS
Fast payday loans are different from this type of loan since the borrowed amount is often small and the repayment time is short (a month).
Payday loan lenders often decide whether to lend to you based on your capacity to repay the loan with your available income.
HOMEOWNER LOANS
Owning a property is another way to improve your chances of getting financing, regardless of your credit score.
Most lenders may overlook credit concerns if you have a reliable source of income, a large asset such as a house or an apartment and are willing to use that asset as security for the loan.
AUTO FINANCE
Lenders are typically more willing to ignore credit concerns when it comes to auto financing because an asset is at stake, especially if the issues are not recent.
Similar to mortgages, if you don’t make payments on a car loan, the lender may try to collect their money by selling the car.
DOORSTEP LOANS
Many customers who have been denied credit by conventional lenders learn that doorstep loans work better. Everything is done in person because this type of funding is personalised. After submitting the application online, a local agent visits your home to discuss the loan’s details.
Furthermore, since payments are made in person, there is less stress involved, making this a friendlier kind of financing that is simpler for lenders to oversee.
