Saving up for a rainy day is what most people try to do so that they can weather those days when bills seem to appear out of nowhere to try and throw their finances out.
Despite our best efforts sometimes our emergency funds that we have painstakingly build up over months and years can get wiped out in a moment because the car broke down completely or the house needs urgent repairs.
Sometimes our rainy-day fund is not enough to cover those unexpected bills and we have to resort to borrowing money. If you have bad credit and your want to apply for a loan you might be hesitant because you feel that you will be refused a small loan for bad credit.
Times have changed, direct lenders understand that many people in the UK have bad credit, sometimes through no fault of their own. Everyone experiences financial difficulties and being late for a few repayments on a credit card or car payment can put a dent in your otherwise good credit score.
Direct lenders which handle your application have many decades of combined experience in dealing with bad credit loans. Your application takes only minutes and you could have the cash in your bank within 60 mins of accepting the loan.
There are many different types of consumer credit products on the market today. Ranging from mortgage loans for purchasing property, car financing helping people to buy cars. There are also personal loans designed for people who wish to take out large sums of money up to £25,000 so that they can finance projects like home improvement or maybe even start a new business.
It is quite common to apply for a loan by going into your local bank branch or building society fill in numerous forms wait a few days or weeks and you’ll hopefully have the money you need.
Banks and building societies are not geared towards small loans for bad credit. They are more interested in funding larger loans as there is much more profit involved for them than payday loans.
To determine which type of loan you need you need to consider the following questions:
If you have answered “yes” to the questions above, then you should consider a small loan for bad credit. These types of loans are designed to give you fast access to the money you need to solve your financial issues today.
£200 borrowed for 35 days
Annual interest rate of 292% (Fixed)
Total amount payable is £256
1212% APR Representative
As we have seen above that there are multiple options for the UK consumer to get a loan when the unexpected happens and they find themselves in a bit of tight financial corner.
You could approach your bank for a small loan, but they may not entertain lending small amounts of money for short periods of time if you have bad credit. This is motivation to continue to improve your credit score.
When you approach your bank for a loan, they will expect you to complete many forms and provide plenty of evidence that you can afford to repay the loan. Which of course is a great thing, since you know that the bank is doing their job to prevent unnecessary borrowing that could put you in financial trouble. The issue here is one of time. Urgent bills that need paying now are not going to wait a few days or weeks for your bank to decide whether to grant you the loan.
From the moment you start applying for credit, regardless if it is a credit card, a mobile phone contract, a personal loan or in short anything which requires the supplier to extend credit to you a credit file is created which records all of your financial history.
Your credit history is maintained by a CRA (Credit Referencing Agencies) such as Experian and Equifax being two of the largest credit agencies. When you apply for a small loan for bad credit the lender will pull your credit file from one of the CRA’s (Which the lender pays for) and looks at your credit history to determine if you present an acceptable risk.
Although a lot of payday small loan lenders look at more than your credit report. Your employment status and how much you earn also play an important part in determining if your application will be granted.
Your credit report contains every financial transaction in recent years. It will show loans you have taken out, how many times you have applied for a loan, credit card, mobile phone contract etc.
Below is a list of the most important information kept on your credit report:
Your current and previous addresses
Date of Birth
Late Payment: Any time you take out any form or credit, be it a mortgage, personal loan, credit card, small loan bad credit the lender will check your credit report to see if you have had any history of late payments. All lenders will report these late payments to CRA’s who will update your record so that the next time you apply for credit it will show up. Each time you make a late payment it will affect your credit score which in turn will decrease your chances in getting a loan with favourable terms if at all.
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
Outstanding Balances: Your credit report will also detail if you have any current outstanding loans and how much is owed on the loans. If you already have a lot of outstanding balances the lender may decide that you may not be able to afford to repay a payday loan.
Electoral Roll: if you are not already registered on the electoral roll, we strongly recommend that you do this straight away. This proves your current address.
Insolvency: If you have ever been insolvent or bankrupt it will show up on your credit report.
Individual Voluntary Agreement (IVA): If your financial situation is getting progressively worse it is possible to enter into a IVA. Doing this can give you room to start paying off your creditors without declaring bankruptcy. This is enough for a bank to decline your request for a loan.
County Court Judgements: If you default on a loan your creditors could take you to court to recover their money. If you are taken to court, you may have a County Court Judgement (CCJ) against you. If you have a CCJ on your credit report it is a sign to other lenders that you present a higher risk. Having a CCJ does not automatically exclude you from taking out a small loan bad credit but it could mean that the lender may charge a higher rate of interest.
All lenders depend on your credit report to see how you have handled and are handling current loans and credit agreements. Cashute gives you access to loans if you have bad credit for short-term loans.
Small loans online come with many benefits which are not always obvious at first glance. Each type of loan, whether it is a mortgage, car loan, personal loan and all the other types of loans have their pros and cons. Here we will look at the pros of small loans online.
One Stop Shop: Applying for a loan through Cashute means you don’t have to waste time and effort in applying on individual loan sites. We will connect your application to dozens of UK direct lenders in an instant. The whole application and approval process are performed on-line.
Straight Forward Application: No need to leave your home or office to trek down to the bank to apply for a loan. No need to speak to anyone either. The whole process can be done from the comfort of your own home. Use your P.C, Tablet or smart phone. We have designed our application process to make sure that you do not waste any time so that you can get cash now when you need it. Why should it be complicated to apply for a small loan bad credit?
Rapid Bank Deposits: All small loan providers know why they are in the business. They are providing financing to people who are in a tight spot with cash and they need access to funds quickly. Therefore, once you have accepted their loan offer the direct lender will make sure that they do their best to have the cash in your bank account fast. No need to wait days or weeks for your small loan bad credit to be approved.
Your cash, your choice: Once you receive the cash into your account, you are free to use it for whatever purpose you require. Although it’s your choice we would recommend that the small loan is used to pay those urgent bills or get the car repaired. We do not recommend using short-term loans for long term financial borrowing.
No Fuss Repayments: You can decide how and when you repay your small loan. You can repay the loan on your next payday or over multiple months as an instalment loan. This way you are in control of what you repay keeping track of your repayments and budgeting is made easier.
Applying through Cashute make the whole process easier and hassle free. You could have the small loan bad credit in your bank account today.
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:
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.