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Which payday loan is
best for people with
bad credit?

Which payday loan is best for people with bad credit?

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Our loans offer people with a bad credit history or no credit at all a chance to get a personal loan. With loan repayments made on time and in full our loans could help people to correct their credit score or create a good score if they have never had credit before.

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Representative Example:
305.9% APR. £400 borrowed for 90 days.
Total amount repayable is £561.92 in 3 monthly instalments of £187.31.
Interest charged is £161.92, interest rate 161.9% (variable)

Please note:
Finacerr is NOT a lender – we are a licensed broker working with the most popular direct lenders in the market to find you the most suitable short-term loan plan. Our FREE quoting service compares more than 40 lenders quickly and finds you a lender with the lowest rate that they are willing to lend to you today.

Rates from 45.3% APR to 1575% APR – we provide a no obligation quote, your APR will be based on your personal circumstances

Logbook Loans Vs Guarantor Loans: Which One Is Best For You?

Whether you’ve failed to repay your debt on time or you decided to stop paying at all, creating a new line of credit is challenging. Banks and traditional loan providers will automatically see you as a threat because of the financial mistake you’ve done in the past. Credit checking is part of their requirements so if you have a bad credit rating, your chance of getting approved is slim. Most lenders do not even give any chance at all. Upon seeing your bad credit, your loan application will be rejected, causing more havoc to your credit report.

Luckily, there are private who are quite willing to take the risk. As long as you can meet their basic requirements, you can have the money you need even with a bad credit. These personal loans are not only popular to anyone suffering from CCJs, bankruptcy, arrears, late payments, and defaults; these are also one of the ideal options of those who have a good or excellent credit rating. The decision is released in a matter of minutes and borrowers can receive the money within the day. Logbook loans, for instance, are among the most convenient financial alternative. However, these are not the only loans that you should consider. Below are some of the loans that you can choose whenever you are in need.

Logbook Loans

First, let’s describe what a logbook loan is. This way, you’ll know if the loan will suit you. From the name itself, the car’s logbook or V5 is important as this is the primary requirement to become eligible. Aside from the documents, you also need a car under your name that is free from any loan against it. Being insured is also a prerequisite for most lenders. Most of all, the car’s condition should be good, if not excellent, and it should be less than ten years old. If you possess the same car for eleven years, lenders will not accept it no matter how appealing it is.

The car will serve as the collateral or security of the loan. However, you can still use it every day without restrictions. The lender will not possess your car physically as long as you can settle the loan on time. You can borrow between £500 and £50,000, depending on the loan’s terms and conditions. As for the repayment term, it can be settled in as fast as 3 months or up to 3 years, depending on the amount of loan and your credential. Bad credit borrowers can use this option as it is flexible and considerate. Their chances of getting approved are higher than the banks and conventional loan providers and the money you can achieve is bigger. So, if you need quick large cash, you can put this loan as one of your options. However, you need to ensure the lender that you can settle the loan on time and will not default on it. Otherwise, they can repossess your property legally, put it on the market, and use the money to repay the loan and its fees.

Guarantor Loans

Using a car or any of your property as collateral is risky, that’s why most borrowers avoid this option. Meanwhile, secured loans won’t work if you have no home or asset to surrender, but you have other options to choose from. A guarantor loan, for instant, is a loan alternative for people who have poor or bad credit remark. Rather than yielding any item of value, you will secure the loan by bringing another person who can cosign the loan contract. The “other person” will act as the guarantor and from the term itself, his primary role is to guarantee the loan for you. This involves vouching for you and your capability and taking your responsibility of repaying the loan in case you default. With this loan, you can borrow between £1,000 and £10,000 which are payable for 1 to 3 years, depending on the loan agreement.

If you are considering this loan, the cosigner that you will present should have an excellent credit remark and a high income. He/she should also understand his responsibility before lending his/her signature.

Payday Loans

Another option for bad credit borrowers is the payday loan. The short-term loan is popular among employees as this is a reliable financial assistance when they are in need. As long you have a paycheck, and the income you receive suits the loan’s terms and conditions, then you can apply for the loan. It does not conduct any credit check and the best part is – you can have the loan you need in one day! Some lenders can even transfer the fund in one hour, making the loan beneficial when you have an overdue bill to settle, a medical expense to finance, a car to repair, etc.

Payday loans are designed to address financial concerns in a rapid manner; however, it comes with a hefty interest rate. Some lenders may even charge fees, such as penalty fees or early repayment, making the loan hard to settle. Many borrowers are trapped in the vicious cycle of debt, therefore, before you apply for this loan, make sure that you can and are eager to settle.

Doorstep Loans

When you barely have anything or you need a small amount, maybe to tide you over the next month or for car repair, this type of loan may come in handy. From the name itself, the loan is delivered straight to your doorstep. There’s no need to visit a physical loan office or withdraw from a bank because the lender’s agent will hand over the cash or check physically. The loan is suitable for anyone who’s capable of repaying the loan but have a hard time to go out or walk because of a limited schedule or an illness.

The loan offers amount ranging from £50 up to £1,000 and though it is small, it is enough to cover your basic expenses until the next month. The loan is advantageous in many ways and aside from its convenience; you can also use the opportunity to clarify your concerns with the agent face-to-face. However, the loan comes with extra costs and normally, it is higher than payday loans and other types of loans.

Logbook Loans For Bad Credit: Where To Find Them?

There are limited options to choose from when you have a bad credit, however, it is better than nothing. Thanks to all the private lenders, banks, and conventional loans are not the only options you have. This means that you can somehow relieve the financial tension you are in right now even with a bad credit.

Logbook loans may not come directly from the usual financial establishments, however, they are from licensed lenders as well. It works by providing your car’s documents so that you can have access to the loan. You can get as much as 70% of your car’s value, depending on the lender’s terms and conditions. This is good news for those who want to borrow a bigger amount even with a poor credit score. But before anything else, you must consider a few things such as losing your car, in case you cannot keep up with repayments. Also, you must learn if it will suit your current financial status and if you are fine with the high-interest rate that it carries.

Looking for a logbook loan is easy, especially with the technology nowadays. But first, let’s talk about bad credit.

What Is A Bad Credit?

The credit report is important when you want to get a loan, a mortgage, a phone contract, or a credit card. Lenders will use this as a basis of your financial history. In reality, there is no universal credit score as each loan providers have their own criteria. However, lenders look for certain features to determine how responsible you with your credit in the past.

Good Or Excellent Credit

When you have a good or excellent credit remark, lenders will see you as a low risk to their business. Your score clearly shows how responsible you are with managing your credit, and this means that you have avoided late payments or default.

Having such score gives you the privilege of being accepted easily and that you have a better bargaining power. This means that you can get a higher amount and a lower interest rate. Therefore, to acquire such trust from the lender, you must either maintain or improve your credit history.

Bad Credit

Having a bad credit simply means that you have failed to keep up with the loan’s terms and conditions. Some reasons include bankruptcy, late payments, arrears, defaults, and the like. Whatever the reason is, your chances of getting approved are slim; some lenders may even reject your application automatically despite your capability to repay the loan. The same thing happens to those who have no credit history. Lenders do not have any basis of financial behavior, thus you are deemed high risk.

Although your case may seem hopeless, your loan application may still be granted. However, you must be ready to face small loan amount and high-interest rates. You may also be asked to provide a guarantor or collateral.

Getting Logbook Loans From A Direct Lender

Logbooks loans are easily available through high main street lenders and online. If you want to start your application, you may do so by going online and looking for a legitimate direct logbook loan provider. Once you found your potential lender, you can proceed with the application process right away by filling out an application form. Usually, there’s no need to fax any document unless you’ve been verified. After a verification call, the representative will ask you to get your documents ready and meet them personally. This is the time when you can complete all the paperwork. Once everything is settled, you may wait for a few weeks before you get the money.

Logbook Loans No Guarantor Needed

Even with a bad credit, a logbook loan will not look for a guarantor. But like other loans, you must meet the lender’s criteria such as a vehicle that is free from any loan against it. Your car should also match the lender’s criteria when it comes to the model, year, and make.

A logbook loan offers certain pros and cons and as a borrower, it’s important you consider them beforehand.

Benefits

–    You can borrow up to £50,000 or 70% of your car depending on the lender’s terms and conditions and your financial status.

–    The repayment period may range from 12 months up to 36 months.

–    Even with a bad credit score, you may still get approved.

–    The application is fast, easy, and straightforward.

–    There are lenders who may offer same day cash.

Negatives

–    If you can’t keep up with the repayments, the lender can legally take your car.

–    The interest rate can go as high as 450%.

Logbook Loans UK: Logbook Loans Offer Instant Money

Usually, a huge loan amount means lengthy waiting days; however, this is not the case with logbook loans. The loan can be acquired instantly as long as you can provide the following requirements:

–    You must prove that you’re the legal owner of the car; otherwise, your application is automatically declined.

–    You must have a stable source of income and work from a reputable company. Otherwise, you may provide an alternative source of a fund such as pensions or benefits.

–    You need to be at least 18 years old and above.

–    You must provide a proof of UK residency.

–    You must provide a copy of valid IDs.

–    Your car must not be over 10 years old.

–    Your vehicle must not have any loan against it.

–    Your car must be insured.

These are just some of the prerequisites that the lender will require; however, each lender has their own requirements. To clarify, you may call or send the lender a message. Most online logbook loans have 24/7 customer service who can help you with your inquiries and concerns.

 

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5 most recent personal loan reviews

Review of Totally Money

Hello, I would like to say how quick, simple and relatively easy to apply for the loan can be. The person who phoned me was very polite and any questions that I needed to ask were answered quickly and easily, they were very knowledgeable and I would recommend them to anyone. I don't think they could be better personally. And the money transfer is really fast and it was all sorted out that day.

Review posted by Stephen Hancock, Leeds

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My partner needed a loan asap and after he was turned down by his bank for a loan and several other banks, we felt we should give Chirpy loans a try. 15 mins after filling out the application, someone called up and approved the loan within minutes. The girl was super friendly and made sure we would be able to pay the loan back. Its great that they believe in you.

Review posted by Nicola Bird, Oxford

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Review of My Jar

At a time I needed financial help, My Jar loans took me through everything I needed to know and bent over backwards to get the money requested to me in the shortest time, really good service. Strongly recommend them to anyone.

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