3 Sure Shot Ways to Avail a Loan with Bad Credit

Borrowing additional loans with bad credit rating is not a cakewalk. We all know how difficult it has become to raise an unsecured loan from a main street lender with red flags in your credit report. However it is also a reeling fact that emergence of FinTech market has made it possible for desperate borrowers to avail several types of loans despite their credit rating woes.

The household debt in the UK is all time high today and hundreds and thousands of people are always on a look out for an additional loan or a cheaper refinancing alternative. So, whether you are looking for a better loan interest or seek a loan despite lower than perfect score, here is a rundown on some of the powerful ways to raise a bad credit loan with minimum hassles.

Using any of these methods should solely depend on whether or not it matches with your credit requirement. However you can certainly use this additional influx of funds to improve your credit health. For, a lot of persistence and hard-work on financial discipline works in repairing your credit rating.

Here is a quick rundown on 3 ways to raise loans with poor credit score.

1. Bad credit loansThis is straight forward. You contact a loan advisor (preferably an FCA authorised one) and get introduced to available loans from private lenders. You can compare and pick the most affordable instalment loan. The loan processing is hassle free and many flexible deals are available instantly without any unwarranted delays; however you might be asked to pay out additional interest rate for easy lending. Herein you must carefully evaluate the impact and affordability of loan using a professional loan broker’s advice.

2. Secured homeowner loans or home equity loans
In case you are seeking out a high ticket loan with bad credit, homeowner loans could be your preferred choice. For, it would help you save enough on loan interest. Despite the current mortgage you can use the part of home equity owned for raising an affordable loan. The rate of interest would certainly be lower than a bad credit loan and indeed it could serve as a much needed relief during the crisis time. A lot of borrowers use homeowner loans for debt consolidation and home improvement projects.

In general you can calculate the eligibility for homeowner loan as 70-80 per cent LTV to the home equity you own. This loan is independent of your current mortgage and thus you can conveniently deal with a separate lender for the same.

3. Payday loansFor small cash gaps however you need not apply for homeowner loans. You can use payday loans to avail instant funding without any credit check; you do not need a guarantor or collateral to get approved for a payday loan. But these are one of the most expensive loans and should strictly be used when you need very small loans for a few days before your next paycheck. In case you need more time to repay the loan, you must apply for secured short term loans or other alternatives.

Using professional loan advice goes a long hand in helping you stay afloat despite poor credit. You need to ensure timely repayments to whatever loan you choose. For, one of the greatest challenges with poor credit loans is to repay these funds with interest on time.As you repay your loan on time today you would build a good history which would eventually help you improve your credit situation tomorrow.