There are many different types of loans on the market and finding one is not an easy task even if you have a great credit rating. If your credit rating is poor, this task can seem impossible. There are many different types of small loans for bad credit and here we explain some of the most popular choices.
One-Size Does Not Fit All
We believe that there is no such thing as a one-size fits all loans. Just as people and their circumstances differ, so should the loan and the criteria for getting that loan. Just because you have a bad credit rating, it does not mean that lenders should avoid you like the plague. We work with lenders and can help you find the most suitable loan for your needs, based on your circumstances. Due to this, you are far more likely to hear a “yes” than a “no” from lenders.
Some of the most popular types of small loans if you have a bad credit rating include:
- Small personal loans
- Secured loans
- Payday loans
Personal Small Loans for Bad Credit – Secured or Unsecured
A small personal loan may be a good choice for those with bad credit. Loans are generally either secured or unsecured. If you have bad credit, it is more likely you will be approved for a secured loan than an unsecured.
The secured loan means you put something as collateral up against the loan. Generally, this is such as your property. However, if you only want to borrow a small amount of money, this may not be the most suitable option.
On the plus side, if you are approved for a small personal loan that is secured, it will at least get you on the ladder again and you can start rebuilding your credit score, providing you repay the loan as set out.
Payday Loans Are Quick Loans and Easy to Apply For
A payday loan is as the name suggests allows you to borrow a small amount of cash and the loan is typically repaid within one or two paydays. This can be an excellent way to be approved for a loan if your credit score is not so good. Payday loans are typically one of the easiest loans to apply for. They can generally be applied for online with no paperwork and you know within hours if you have been accepted or not. We work with lenders who specialise in offering small loans for those who have a poor credit rating or no credit rating. We can help you to secure the most suitable loan for your needs.
Reasons Why You Might Need a Small Loan
There may be times when your money does not stretch as far as you might like it too. There are also times when something unexpected pops up and you do not have the funds immediately to pay for it. This is where a small loan comes in very handy. Despite a poor credit rating, it may still be possible to get approval for a small loan. Popular reasons for wanting a small loan include:
- An unexpected bill;
- You forgot a birthday and have to purchase a gift before you get paid again;
- Your vehicle needs repairs unexpectedly;
- You want to take advantage of a good bargain at a knockdown price;
- Your child needs funds to pay for that school trip and you forgot to budget for it.
The above are all reasons where small loans for bad credit might come in handy. How much you might be able to borrow will depend on several factors and these can differ between lenders. We work with lenders who offer loans big or small to people who have a poor credit rating and can help to match you with the most suitable type of small loan for your needs.