Using Personal Loans as a Bad Credit Solution

With bad credit score you turn into a bad egg for the financial institutions. Despite your personal conditions or constant reassurance to pay back on time, they tend to reject your loan application and assume that you are destined to fail in the repayment of loan. The challenge of restoring your financial credentials is a big one and you need suitable facilitation of your borrowing needs via FCA regulated loan brokers to turn to turn the page on it again.

For, staying credit low also means you would be denied the credit during emergencies. Although credit help is always available in the UK, but it comes at a cost!

Bad credit loans are always more expensive but these are also the only way to mend your financials. During troubled financial times, when you seek urgent funds you may seek instant cash advance or personal loans bad credit with the help of a broker.

Bad Credit Payday Loans

Payday loans are cash advance loans that are directed to your account within a few hours of approval. The cash is borrowed for a few weeks or till the next pay day. The borrower needs to refund the funds by the next salary day. The promptness of loan disbursement makes them attractive credit product.

But on the failure of repaying these loans, the late fee levied is too high and refinancing is certainly not an option as it can take a complete toll on your finances.

The rate of interest capped by FCA in the UK is up to ‎£24 for £100 payday advance. However the APR for bad payday loans can go anywhere up to 400 % or more. It is thus important to be careful before entering into these loans. With bad score, conventional lenders would not be interested in offering you payday loans but a lot of private financial institutions are there who can help you out. But a lot of loan sharks are also active in the market.

The loans are thus ideal for those who seek instant help and are sure about the income source till the next payday. You should never raise these with uncertainties as it will do more harm than good to your credit situation.

Bad Credit Personal Loans

Personal loans are all purpose loans and can be used to fund a variety of expenses. Being the signature loans, these are available as unsecured loans and can be drawn for long term or short term. With bad credit score, it is common to raise personal loans as short term instalment loans and use them as a tool to build the credit.

When you draw them as instalment loan for short term, you combine the benefits of short loans and personal loans. You can plan the repayments and improve your credit score with the success of each repayment.

A broker can help you avail a personal loan as per your credit condition. Brokers assess your credit report and search out available credit products to help you improve your financials. You can contact a broker online and use the services without an upfront fee.

Whether you seek a no guarantor personal loan or no collateral loan he can help you. They also draft a credit improvement plan.

All in all, an instalment loan such as personal loan is always a better credit solution than a payday loan.