In simple terms, an instalment loan for bad credit is where you take out a sum of money and repay it back to the lender with interest in a fixed number of repayments.
The amount which that you repay is agreed before you accept the loan. You can agree to repay weekly or monthly depending on the type of instalment loan you require.
Traditionally these instalment loans were the preserve of car loans and mortgages in other words loans of a larger amount. But it is now more common for people to seek short term loans quickly of a lower amount paid over a period of months or maybe years which are unlike payday loans that are paid off over the period of a month.
Many Direct lenders are now prepared to office short term loans over longer periods than traditional payday loans of one month.
In the past, the only funds which people had access to during an emergency were payday loans which meant the money had to be repaid within 30 days or the following month whilst this was fine for very small loans it was not so great for some.
The benefit of a short-term loan paid in instalments meant that there is less pressure in needing to repay the loan in one go after a month. Instalment loan repayments can be repaid over multiple months which people find is much more manageable and giving you the time to repay the money.
Instalment loans mean that there is a lower chance for you to miss a repayment and helps you manage your finances better and prevent any late payment charges which mean this helps your credit score.
£200 borrowed for 35 days
Annual interest rate of 292% (Fixed)
Total amount payable is £256
1212% APR Representative
Lots of direct lenders now offer different types of short-term loans even if you have bad credit you can still apply for the short-term loan.
In the past, many people struggled to be approved for short term loans with bad credit but nowadays bad credit is not the obstacle it once was due to direct lenders no longer use the old method of relying purely on a person’s credit score to determine their ability to repay a loan. Lots of direct lenders look at other parameters like your employment status, how long you have been with your employer, residential status if you are a homeowner even if you are registered to vote.
More people with bad credit are now able to get instalment loans because more direct lenders are more likely to lend since they now look at a wider range of factors to determine your suitability.
The lender does not base their decision on a bad credit score any more and now fewer people are prevented from getting an emergency loan when they really need it. With our panel of lenders, you are more likely to find an instalment loan regardless of bad credit.
We are along with our panel of lender are all authorised and regulated by The Financial Conduct Authority. Our direct lenders will always be as transparent and completely open with you regarding every aspect of the instalment loan. We always recommend you always read the terms and conditions so you will be safe in the knowledge there will be no charges or additional fees you were not expecting.
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
Cashute is an appointed loan introducer meaning that we work with a wide range of lenders that we can help to match your application for a payday loan.
Rather than spending all day looking for one lender after another where the possibility of your loan application being declined by some due to bad credit rating. Being declined will, in turn, cause your credit rating to decrease further, let us do the searching for you. Who needs the stress during an urgent financial emergency to be looking around hoping to find the best deal?
Our panel of direct lenders specialise in bad credit payday loans to you have a better chance of finding the right one in less time offering a quick loan.
Remember that Cashute is an appointed loan introducer and not a direct lender, and as such we are unbiased in our approach to matching your situation to the best short-term payday loans.
All the direct payday lenders on the panel are fully authorised and regulated by The Financial Conduct Authority.
To apply a loan is simple, collect your bank details. 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 wait for a response from one of our direct lenders. As soon as we find the best match for you, this should not take long.
When you receive the loan proposal can decide if you wish to proceed with an 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.
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: