As unfortunate as it is, getting a bad credit score is very easy. You may have missed previous loan repayments or paid the minimum amount on your credit card each month. You can even have a bad credit score if you have little to no credit history.
Luckily, there are loans you can get for bad credit situations. Here at Tendo, we value financial transparency and have created this guide to help you understand bad credit loans. So, whether you’ve been turned away by other lenders due to your bad credit score or you want to know your options, we can help.
Can I get a loan with low credit?
It may be hard, but it is possible to get bad credit loans. We work with a panel of over 50 lenders who often accept applications from individuals with poor credit scores. Whilst we won’t conduct a credit search, the lenders will complete a soft credit search when you are applying for a loan to help with your application. If you are happy with the quote, the lender will conduct a hard credit search.
What are bad credit loans?
Bad credit loans are designed for people who have a poor credit score and history. Due to the added risk to the lender, loans for people with bad credit will often have higher interest rates than traditional loans. You may also face other restrictions, such as a maximum borrowing limit.
Small loans designed for people with bad credit can be helpful if you have a bad credit score and are struggling to get approved for a traditional loan. If you pay your loans back on time, they can help improve your credit score over time. This can increase your chances of getting approved for lower interest or better termed loans (including mortgages) in the future.
How do I apply for loans with bad credit?
When it comes to applying for loans, we want to make the lending process as straightforward as possible. You can apply for bad credit loans from our panel of lenders using our easy to use online application form. Any type of credit is considered, and you could get accepted for loans for bad credit within minutes.
We are a broker, rather than a direct lender. If we match you with a lender, we will give you a no-obligation quote to review. If you accept it, you can e-Sign the agreement and the funds will quickly be transferred into your bank account.
Low credit loans eligibility
You must meet the lending eligibility to be approved for a bad credit loan. Our lenders require you to be at least 18 years of age and live in the UK. They also require you to have a regular income from work and have a UK bank account. You will also need to have a valid email address and phone number so that we can stay in touch with you. Our lenders review and approve applications on a case-by-case basis and they will also look at your regular monthly income and expenditure to ensure that your loan is affordable.
What is bad credit, and how do I check if I have a low credit score?
A credit score represents your overall credit history and your creditworthiness. It’s used by lenders to evaluate how likely you are to repay your loan and helps them determine whether they should lend money to you. You may have a bad credit score because you have applied for lots of loans at once, have missed loan repayments or you may have little to no credit history.
You can check your credit score using sites such as Experian, Equifax and TransUnion. It’s a good idea to know your credit score before you apply for loans. This can help you evaluate how likely you are to be accepted and if you need to apply for extremely bad credit loans.
How can I improve my credit score?
You can improve your credit score using the following methods:
- Get on the electoral roll – this helps lenders check where you live
- Pay your bills on time – missing one or two payments can significantly impact your credit score, so try not to miss any payments
- Limit how many loans/credit cards you apply for – too many applications may make lenders think you are bad at managing your finances
- Get a credit card – having no credit history equates to a bad credit score, so build your score by getting a credit card. Just make sure you make payments on time
Why Choose Tendo Loan for a loan if you have a low credit score?
Here at Tendo, we are committed to helping you find the best loan for your individual circumstances. If you have a bad credit score, we will try our best to match you with a lender who specialises in providing loans to individuals in your situation to make it as easy as possible… we have over 50 lenders on our panel! We are a reliable and trustworthy broker who will aim to find you quick and convenient access to a credit provider which meets your needs, no matter your credit history.
What to do if you’re struggling with debt
While loans for bad credit are a quick way to access funds if you have a bad credit score, it’s important you understand the implications. If you need financial advice or assistance, it’s a good idea to seek help from any of the following services:
If you feel you are struggling, or may struggle with your loan repayments, we would recommend you always speak with your lender at the earliest opportunity
