Once in a while regardless of how careful you are with your cash some financial emergency or another crops up demanding to be dealt with immediately. These emergencies seem to always come around when your finances are at their lowest point and you need to take out a loan.
Low credit loans are short-term loans which are designed for people with not so perfect credit scores. Low credit loans are just like bad credit loans in that UK direct lenders have designed and adapted their products to meet the requirement that people have to take out small loans despite having poor credit.
Direct lenders in the UK will do their best to grant you a low credit loan based on more than just your low credit score. They will also look at your employment status, for instance; do you work full time/part time along with how much you earn, how often you are paid. Therefore, you should not count yourself out if you don’t have a perfect credit record.
When you get your loan, you have the freedom to spend the money as you wish. You can use the cash as you see fit. There are no restrictions as to what you spend the money on. The loan is not withheld for a particular purpose. Although you have the freedom to choose on what to spend the money on, we would strongly recommend that you use the money to resolve pressing financial issues i.e. pay bills, have the car repaired etc.
If you are coming up a little short this month and need a little extra to cover you until next payday comes around and you can’t put paying those bills off any longer or you really must get that car repaired then low credit loans can help you resolve these problems.
Here are a few examples how low credit loans can help you.
Get up to date on Bills: It’s a lovely feeling to know that you have all the bills paid and you are in the clear. No one wants to be in a position of having to borrow money to pay off bills but every so often we get caught out and a low credit loan can really help out until next payday.
£200 borrowed for 35 days
Annual interest rate of 292% (Fixed)
Total amount payable is £256
1212% APR Representative
Repairs: Houses and cars will always need repairs. If it is not the brakes, it’s the guttering on the house that needs taking care of. The more you use your car the more maintenance it will require no matter how much you try to look after it, the car will always need the big jobs done to it like cam belt, brakes, servicing. The same for your house, wear and tear will mean the roof may leak or the boiler may breakdown and it’s these things which will eat into your savings.
You might think of using your savings for the repairs, but if using your savings will leave your finances empty it might be an idea to take out a small loan instead and repay it over a period of months.
Sensible Purchases: Although small low credit loans should really only be used for emergencies there are occasions when you see a deal that is too good to miss, for example you might see a deal on a kitchen appliance you need to replace or such like. Rather than wait for your next payday to come around when the offer may have ended you might take out the loan and repay it in full on your next payday. Provided you can repay the loan without causing yourself financial problems.
Pad out your personal finances: If your income has taken a little dip recently and you need a little bit of money to top up your cash reserves until your income is back to normal these small loans can be of use.
Low credit loans are short-term loans which are repaid over the course of a few months if you wish. These types of loans are to be used to solve short-term financial issues. Low credit loans will never solve long term financial problems. Work out how much cash you need before you apply for a bad credit loan or poor credit payday loan. You never want to borrow more than you need, or you’ll just be repaying more than you must.
Applying for a loan is straightforward and is all online.
Before you start your application have this ready
Simply chose how much you wish to borrow and over how many months you wish to repay the loan
Fill in our simple application form which takes only a few minutes and then apply for your loan
We send your application to our panel of lenders, once approved you will receive the funds directly to your bank account
What is so important about a credit rating? The answer is simple, it is very important if you are looking at taking out financing i.e. you need a loan then your credit rating is your financial DNA. Without it you are practically invisible to a lender.
A credit rating is built up over many years of credit activity. Any time you take out credit, for example a personal loan, credit card even a mobile phone contract these will be recorded on your credit report. Your credit score will be calculated based on your financial behaviour. For example, did you repay the loans on time, did you miss any payments, have you ever defaulted on any loans in the past?
When you apply for a small loan today the lender will check your credit report to determine if you are a suitable person to lend to.
If you do have a poor credit rating, you can still apply for a low credit loan. Lenders always look at your current situation as well as your credit history when deciding whether to grant you a loan or not.
Lenders will examine your credit report when you accept their offer of a loan. They get a copy of your credit report from one of the three credit reporting agencies like Experian, CallCredit and Equifax.
Any company which offers credit will exchange information with these credit agencies so that credit reports can be kept up to date. If you make any late payments or default on any payments these will be reported to the credit agencies who will put these on your report and adjust your credit score accordingly although it is not uncommon for credit agencies to have a slightly different credit scores for you but the difference won’t that great.
Lenders will conduct a hard credit check when you accept their loan offer. Your credit check will contain the following information.
Personal information: All the usual stuff, such as full legal name, date of birth etc.
Current amount of outstanding debt: Do you have any outstanding loans, and how much do you owe on those loans.
Loan history: Have you made any late payment, missed any payments or even defaulted on a loan.
Electoral roll information: Are you currently on the electoral register.
County Court Judgments (CCJ): Have you had or had any CCJ’s taken out against you.
Individual Voluntary Agreements (IVA) Bankruptcies: Have you ever entering into an IVA or been declared bankrupt.
A lender will use the information above to make an informed decision whether to grant a loan or not. It is very easy to ruin your credit than it is to repair it. Make sure that you take care of your finances and if you do take out a low credit loan that you repay it on time and in full.
The biggest benefit is, of course, the ability to respond to an unexpected event with a lump sum of cash. But, compared to other types of credit, there are other benefits to applying for a short-term loan through Cashute:
Depending on your circumstances, you should apply if:
Whenever you apply for a loan and borrow money a lender will always look at your credit history. The first step when a lender receives your application is to perform a soft credit check on you to see if you are suitable and match their requirements. From this they will offer you a loan on condition when they perform a hard credit check that everything check out fine.
Keeping your credit score looking healthy is important since a poor credit score will affect your ability to apply for credit. It is both easy and hard to ruin and fix your credit score. If you want to improve your credit score you can take the following steps:
Short-term same day loans are one of the best ways to get cash now faster than most other options available today. No long application process, fast approval time and fast deposits into your bank account so you can continue with your day.
To apply a loan is simple. Provided you meet the criteria listed below you can start your application process:
Once completed submit the application form by clicking on the “Apply” button and we’ll find the best match for you. The search will not take long and you’ll have a response in minutes.
When you receive the loan proposal can decide if you wish to proceed with the offer. If you do want to proceed with the loan just apply and the funds will be deposited into your bank account within hours, always remember that you can apply with no obligation even if you have bad credit as many direct lenders support payday loans bad credit.
If you find yourself in difficulties and are unable to make your repayments, we strongly advise that you contact your creditor immediately, we also recommend that you speak to the companies listed below.