Bad credit loans are specifically designed for those who have a poor credit history. People in this situation may have been turned down for finance repeatedly by high street banks and other lending companies. In these circumstances unsecured bad credit loans can provide a means to access much needed borrowing through specialist financial institutions and licensed lenders.
Individuals can find themselves in this situation for a number of reasons, such as unemployment or illness, which can result in an inability to make consistent debt repayments on agreed due dates. This can lead to payment arrears, County Court Judgements or bankruptcy, which are all recorded on a person’s credit file. These are therefore brought to the attention of finance companies, banks etc. when that person applies for finance.
Bad credit loans lenders can offer various types of borrowing. These include, for instance, bad credit loans with no credit check and bad credit loans with no fees. These forms of borrowing can be really advantageous for people who are in financial difficulties. Apart from obtaining finance, the ability to do so can also help to repair a poor credit record providing repayments are made on time.
Another type of borrowing that is available from specialist companies is called ‘bad credit loans no guarantor’. This basically means that you do not need to find a family member or friend who is willing to meet repayments if you are unable to. However, if you have someone who is willing to stand as a guarantor then it may increase your chances of being able to obtain finance known as ‘bad credit loans guaranteed approval’.
Many specialist finance companies operate online through websites. This means that it is often possible to get what is referred to as a bad credit loans instant decision, and approval to borrow up to a limited amount. To borrow more you may need a guarantor, and it is usually beneficial if the guarantor is a homeowner as this may mean that you will be able to access higher amounts.
If you are considering an application for any of these alternatives, there are a number of requirements that you will have to meet. You must be 18 years of age and above, you should be employed with a steady income and you should have a bank account. Additionally, to apply for any of the options mentioned, you must be a resident of the United Kingdom.
Some lending companies allow borrowers to apply online so that you can make the arrangements from the comfort of your own home. The company will then act on your behalf by sourcing finance that is appropriate to your situation and your ability to repay the loan. Once you meet the standards set by the lender and prove that you can meet the repayments, you may be able to gain approval in just a matter of minutes.
Many of us may have fallen on hard times leading to dire financial circumstances which can easily get out of hand. Unfortunately, however, we still need to meet every day expenses especially if we have families to support. It is therefore a comforting thought that there are still ways in which to obtain finance when the mainstream lenders have turned us down.
Back on Track Loans offers a wide range of unsecured loan products at competitive rates of interest. Because they have more than 250 lending options available they can find low cost products even for customers with a poor payment history.