Can Anyone get Bad Credit Loans?

Once you understand the advantages of bad credit loans you might think that you would like to have some. However, you could find that you will end up wondering whether you can actually get the loans. Most lenders do have strict criteria as to who they will lend to and this could mean that you will feel that you may not be able to get a bad credit loan. There are certain factors you might be particularly worried about such as credit score and income but there are lots of reasons why these may not be as much of a problem than you might think.

Credit score

Your credit score is the thing that most lenders want to check. In fact, in the UK, it is a legal requirement that they check your credit score. If your credit score is not that good, you may feel that you will not be able to get any loan at all. The good thing about a bad credit loan, is that it is available to those with a poor credit score. The credit check is just a legal look at your situation but it will not mean that you will be turned down for the loan based on it. In fact the credit rating is not considered at all.

After this, you may wonder whether you will get turned down because your credit score is too good. You may feel that these loans are just for those people with a bad credit score and that your might be too good to be considered. However, as mentioned above, your credit rating is not looked at. So, whether you have a good or bad credit score it will not matter and you will be considered in the same way as any other applicant.

Income

With some lenders you have to have a decent income to get a loan. Some will check your income levels to make sure that you have enough to repay the loan. A bad credit lender will not do this. They will need you to have an income, so that they can set up a repayment on the day that you get paid. However, how much that income is and where it comes from does not matter with a bad credit loan. This means that it could be benefits, pension or some other income which is not normally considered to be good enough for repaying a loan.

It is important for you to check though and make sure that you feel your income will be enough to repay the loan. It is well worth finding out how much the loan will cost to repay and when you will be expected to repay it. Then you will be able to work out whether you will be able to afford it. You will need to think about, not only how much money you have coming in, but also what you need to buy, so that you can decide whether you will have enough money left to be able to afford it all.

Other factors

There are a few constraints for borrowers though and it is worth being aware of these although they are unlikely to be a problem for most potential borrowers. All borrowers have to be over the age of 18 and this is a legal requirement so there is nothing that any lender can do to change this. All borrowers have to be a UK resident as well, this is because they have to provide ID to prove their address and is also a legal requirement. You will need a bank account, so that there is somewhere for the lender to pay your money into. It will also be used to set up a direct debit for the repayment of the loan. Most people have an account so this will be easy enough to fulfil. Even if they have no account it is easy to set one up. Lastly, the person needs a regular income. This might seem harder, but actually it is simpler than it might seem. This does not have to be a salary but can be an income from benefits, pensions, investments or anything like that. They just need to be paid on a specific day so that the repayment can be set up for that day.

So, as you can see, almost anyone would be able to get a bad credit loan. There are very few restrictions and therefore it can be straightforward to get one. This can mean that you might find it a lot easier than you think to get one. It is good to keep this in mind because if you are in the situation where you need a loan quickly or you do have a poor credit report then knowing about these loans could be very handy if you do need money.

Are Bad Credit Loans a Good Idea?

There are a lot of people who are against borrowing completely and others that are against certain types of loan. This might make you questions whether you should be using them. It is a good idea to think about the advantages though as well as the disadvantages and this will help you to make the best borrowing decision for you.

Advantages of borrowing

Many people get worried about borrowing because they worry about the cost of it as well as whether they will be able to manage the repayments. While it is sensible to think about these, it is not something that you should necessarily be worried about. It is wise to make sure that you check to ensure that you are happy with the cost, for example. You can find out the total cost easily, either by using a calculator on the lenders website or by asking the lender. Then you will be able to decide whether you are happy to pay that amount of money for what you are getting in return. It is also extremely wise to make sure that you can afford the repayments. Again, you should be able to find out from the lender how much the repayments will be. Then you will be able to take a look at your bank statements and work out whether this is something that you will be able to afford.

Borrowing can help us out a lot. Many businesses would not be where they are today without borrowing. The same goes for many home owners as well. There are many things that we would not be able to afford if it was not for borrowing money. Sometimes a loan, such as a mortgage or student loan can help us to improve ourselves. We can get better educated and then get a job that pays more money, for example. Or we can buy a house which will save us form having to pay rent when we retire. There are other situations where it can improve our finances.

Borrowing can also help us in emergencies. There are times when we might need money and not have any. If an unexpected bill comes along, if we need to replace something that has broken or if we just run out of money and need to buy food or fuel then we may need money quickly. Without it we could find that we will have our electric cut off, have to go without a fridge or not be able to drive to work. In these situations, being able to borrow a bit extra can make a big difference.

Advantages of bad credit loans

A bad credit loans means a loan which is available to someone with a bad credit rating. These might seem like a bad idea as someone who has potentially already shown they cannot deal with loan repayments should perhaps not be borrowing money. However, every individual circumstance is different and someone that has had financial problems in the past may now be in the situation where they can cope with a loan now. It might also be the case that someone has a poor credit rating because they do not make regular payments and have not had a loan before so are not able to prove they are capable of coping with a loan. Therefore, they may be turned down for one when there is simply no good reason for it. This means that a bad credit loan can be advantageous to those who cannot get a loan elsewhere.

These loans can also be arranged very quickly. Some bad credit lenders can get you the money that you need in a few hours. This means that if you are in the situation where you need money in a hurry then you will be able to get a loan fast. The speed will vary between lenders so it could be a good idea to check before you apply, especially if it is essential that you get the money really quickly. It is a good idea not to be put off a loan until you fully understand it. Many people will just dismiss all loans or loans of a certain type because they feel they are not good. However, loans are all designed for different types of people and different circumstances and so it can be wise to have a good understanding of them all and you will then be able to decide for yourself which will be the best for you in the circumstance you are in. Once you have identified a loan type, it is a good idea to also think about which lender you want to go with. You will find that there is a choice and they will differ in their cost as well as how quickly you can get the money so it is worth comparing them to find out.