Proper Finance can help you find bad credit loans of anything from £500 to £10,000 over a 12 to 60 month period.
You can check your eligibility by filling in our online application for a bad credit loan. Simply click the “apply now” button below to start your application.
Many lenders only accept applicants who have a good credit score, as they need evidence that the borrower is capable of keeping up with repayments. This has made it difficult for those with bad, fair or non-existent credit ratings to get access to finance.
From this has emerged a new category of loans – bad credit loans, enabling those with adverse credit histories to get access to the finance they need.
With these types of loans, the lenders are ensured that the loan will be repaid through various different ways, including securing a valuable asset to the loan that acts as collateral, or electing a guarantor with credit-worthy credentials.
Proper Finance works with a range of different lenders, many of which may accept borrowers with bad credit. For example, our guarantor loans lenders will often accept those with adverse credit histories. In fact, guarantor loans are often used by people with bad credit, relying on their guarantor to provide the credit-worthy details needed to secure the loan.
The guarantor will usually have to have a good credit rating along with other qualities to ensure the lender they are capable of keeping up with repayments. If the main borrower defaults on the loan, the guarantor will then be responsible for keeping up the remainder of the repayments.
Additionally, borrowers with bad credit can also apply for secured loans, in which one of their valuable assets (e.g. a house) is used as collateral if repayments can’t be made. Through this the lender gets security that the loan will be repaid, even if the borrower defaults.
Yes, bad credit loans can improve your credit score, however this is only provided that borrowers keep up with the loan repayments. When this happens, the borrower begins to build up a history of healthy borrowing behaviours, which the CRAs can acknowledge, leading to a boost in your credit rating.
Whilst bad credit loans can improve your credit score, it’s important not to apply for too many in a short period of time. Doing this can actually be a deterrent to future lenders, as it may suggest you are too reliant on credit.
Similarly, if you cannot keep up with the repayments on the bad credit loan, this can also restrict your chances of borrowing in the future. Failure to keep up with repayments on a loan and can also damage your credit rating.
Although bad credit loans are known for having a lower level of criteria than other forms of loans (i.e. not requiring a good credit score), as with any form of borrowing there are certain requirements that you must meet.
The main borrower will usually have to meet the following requirements for a bad credit loan:
The main borrower will not usually need to have a good credit rating. However, their guarantor will most likely need to provide credit-worthy details, such as a good credit rating and homeowner status.
Your guarantor for a loan is usually someone from within the family. Common guarantors include a parent, a sibling or a spouse, all provided they are between the age brackets of 18 to 75 years old.
A bad credit loan can provide numerous different benefits, helping those who have struggled to access finance successfully apply. Bad credit loans can also help those with a bad credit score to start building up a good history with borrowing, which can subsequently lead to improving their credit score.
A bad credit loan could also help to fund various different financial aspects of a borrower’s life, including weddings, debt consolidation, and even education.
There are many great benefits that can come from comparing bad credit loans via Proper Finance’s comparison site. We only work with lenders that are in-keeping with the FCA’s rules and regulations, meaning that any loan you find through our comparison site is from a legal, secure provider.
Proper Finance also work with some of the UK’s leading lenders, meaning that we compare some of the very best deals in the country for lending and borrowing.
Our online application only takes 5 minutes to complete, is free to use, and provides you with an instant decision. You could also receive funds the very same day of approval.
You can find great bad credit loans through Proper Finance. Simply click the “apply now” button and fill in our online application form.
When completing our form, you’ll have to fill in a few personal details, including the following:
You can be assured that personal details will be handled with the utmost of care and security. Find great deals on bad credit loans with Proper Finance.