Loans With Bad Credit History
There are many ways in which someone can incur bad credit; generally speaking financial mismanagement is to blame. One myth of bad credit is that it can only be incurred via previous loans, missed payments on utilities or even subscriptions such as Sky TV or Virgin Media can have the same effect on your credit score.
Different types of bad credit will have different affects on your credit record; one missed payment on a magazine subscription will not greatly dent your chances of being approved for future finance, whereas CCJs IVAs and bankruptcy will show up on your credit record for a minimum of 6 years.
Fortunately there are a now a number of lenders offering Loans with Bad Credit History, here is an overview of the types of bad credit loans available: online installment loans
Guarantor Loans – Amount offered ranges from £1000 to £5000 over a term of 1 to 5 years. Requires a guarantor to support the application and guarantee the monthly repayments should the borrower fail to do so. The guarantor must be a homeowner, have good credit history and be between the age of 25 and 72; they must not be financially linked to the applicant meaning they can not be a partner or spouse living in the same property.
Some guarantor lenders are now offering a tenant guarantor loan, which offers up to £1000 over a 12, 18 or 24 month term. Similar to the normal guarantor loan they require someone to support the application, the difference being; the guarantor can be a tenant; however they must have good credit and be on the electoral role at their current address.
Instalment Loans – Again offering up to £1000 over a term of up to 12 months, instalment loans do not require a guarantor to support the application. Despite being a specialist bad credit loan, lenders will still carry out a credit check and some form of income and outgoings in order to prove that the loan is affordable for the borrower. Despite carrying out a number of checks on the applicant instalment lenders will look to offer a same day decision meaning the money should be with the borrower within 24 hours.
Payday Loans – A relatively new product that has become popular amongst those with bad credit history due to the decision and payout time offered. Payday lenders offer amounts ranging between £20 and £400 and are designed to be repaid at the borrowers next payday. The amount available will be dependent on the borrower’s repayment ability which is calculated in the automated credit and affordability checks carried out. Payday lenders will have a decision within 10 minutes of applying and all being well the money can be transferred into the applicants account within 1 hour.