If you intend on remodeling your house, covering urgent medical costs, repairing your vehicle, or incurring any other expense, then chances are you need a loan to fund it. And while borrowing a loan from a traditional lender is usually the most obvious choice, sometimes you may be unable to secure approval because of a bad credit score.
When this happens, you can get a loan with bad credit from UKBadCreditLoans, but for those who may be unfamiliar with it, here’s a quick review of the lending service as we look to give you a good idea of what it is exactly that you’re in for.
Getting Started on UKBadCreditLoans
UKBadCreditLoans is an online credit broker that connects borrowers with potential lenders that can provide funding that ranges from as low as £100 to £5000. In this respect, the platform is not a direct lender, but the benefit of this is that the service is completely free-to-use, and it also has no hidden fees or upfront costs either.
To be eligible for a loan, you must:
- Be 18+ years old
- Be a UK citizen or permanent resident
- Have a steady source of income
- Have an active checking account
If you fulfill these requirements, the good news about applying for a loan from UKBadCreditLoans is that you don’t need to worry about having to deal with a huge amount of paperwork, as you only need to fill out a quick and simple online form to submit your loan request.
Once you do that, UKBadCreditLoans instantly matches you to the lenders in their network that are in the best position to provide you with funding based on your specific criteria.
Emilia Flores, the co-founder of UKBadCreditLoans, went on to say, “Our platform is focused on providing borrowers of all credit types with as many options as possible, especially when they have limited access to funding from traditional lending institutions.”
From there, it’s a matter of reviewing and comparing the loan offers available to you. However, do keep in mind that each loan offer comes with its own rates, terms, and penalties to consider. Most lenders will usually offer varying rates that can go up to as high as 49.7%, with a repayable period that typically ranges between 1 and 36 months.
As such, it is important that you choose the one that you feel most satisfied with. Once you do, it’s a simple matter of e-signing the loan agreement, and the lender will begin to process your funds, which should be deposited into your checking account within 24 hours.
What Loan Types Are Available via UKBadCreditLoans?
UKBadCreditLoans can provide you with access to an extensive network of lenders that are willing to provide you with a wide variety of loan products to choose from. Some of the types of loans you can apply for include;
- Bad Credit Loans: These types of loans are designed to specifically cater to borrowers with poor credit scores. As a result, they tend to come with less stringent eligibility requirements compared to traditional loans. However, the downside is that they have high-interest rates, which is often because of the higher level of risk to the lender.
- Payday Loans: These are short-term loans that effectively act as small cash advances until your next paycheck arrives. These loans don’t typically go over £5,000 and tend to be due in full when your payday arrives, hence the name. The benefit of these loans is that they can be processed quickly, but they also come with the highest APRs, with some even going as high as the triple digits.
- Same-day Loans: These are another form of short-term financing that allows borrowers to access funding within the same day of submitting a loan application. As a result, they are well-suited to dealing with financial emergencies but the problem is that they often come with shorter repayment periods.
What Are The Pros of Using UKBadCreditLoans?
#1. Simple and Fast Lending Process
One of the biggest benefits of using UKBadCreditLoans is that it effectively provides borrowers with a simple, straightforward, and stress-free experience. You don’t need to submit any lengthy paperwork, wait in any long lines, or even submit loan applications to multiple lenders with no guarantee of approval.
Everything is handled online, and the platform instantly matches you to lenders that are most likely going to approve your loan request, thereby sparing you a lot of time and effort. On top of that, you can still secure approval even with a bad credit score since lenders will usually consider other factors like your income level when evaluating your loan application.
#2. Facilitates Instant Loan Comparison
Rather than having to manually look around for loan offers, UKBadCreditLoans allows borrowers to sit back and wait for lenders to offer them competitive loan rates and terms. And since it is the loan provider’s best interest to secure your business, they will make sure to provide you with fair and transparent lending terms.
You will also have a fair amount of time to review the loan offers and decide which one you would prefer to take. As a result, borrowers are more often than not in the best position to get a very good deal despite having a bad credit history.
#3. All Lenders Are FCA-Compliant
Another advantage of using UKBadCreditLoans is that all the lenders that they are partners with are FCA-compliant. This means that they are all licensed and regulated by the government, so there is no risk of ever falling victim to any fraudulent or predatory lending practices. As a result, it is significantly easier to use this platform than to try to find a legitimate online lender all by yourself.
What Are The Cons of Using UKBadCreditLoans?
#1. High-Interest Rates and Extra Fees
One of the main drawbacks of using UKBadCreditLoans is that their lenders typically charge high variable interest rates that can go as high as 49.7%. However, do keep in mind that these rates are typically average for most cash advance sites, and they often vary depending on your credit rating.
In other words, the higher your credit score, the lower your interest rate will be, and vice versa. On top of that, some lenders may charge extra fees, such as origination fees or even prepayment penalties for repaying the loan early. As such, it is always crucial that you take the time to read the fine print.
#2. Does Not Provide Loans Directly
One of the downsides of using UKBadCreditLoans is that the platform does not provide borrowers with funding directly. This means that if you apply for a loan from UKBadCreditLoans, you will be matched with their partner lenders, which means that the rates and terms that you will be offered are bound to vary.
This can make it especially difficult for you to know what kind of loan amounts, rates, and terms you will get. Luckily, you can feel free to submit a loan request without ever having to pay any fees or worry about them conducting a hard credit check that negatively affects your credit rating.
The Bottom Line: Can You Rely On UKBadCreditLoans?
If you should ever need to borrow a significant sum of money but your credit score prevents you from borrowing from a bank or credit union, then turning to UKBadCreditLoans for help is not a bad idea.
After all, they have a positive reputation online among past users, and they don’t charge borrowers anything. Also, as we’ve shown above, there are more benefits than drawbacks when it comes to using their platform. In short, it is safe to say that they are a reasonable choice to consider if you find yourself with very limited financing options available to you.