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Representative 277.5% APR
Representative Example: Borrow £700 and pay £111.27 per month for 12 months at an interest rate of 140% per annum (fixed).
The total charge for credit is £635.24 The total amount repayable is £1335.24. Representative 277.5% APR (variable). Your APR rate will be based on your circumstances.
The Facts On Blacklisted Loans
Many loan applications may be rejected because the borrower does not meet the criteria set by the lender. However, there is no such thing as a blacklist. Many people believe that by having a bad credit history, they are banned from being able to get a loan in the future. It is a common misconception that one’s details are added to a “credit blacklist” and that you will not be eligible for any loan.
Each time you apply for a loan, the lender will see whether your personal circumstances are acceptable to their lending criteria. You will be offered a loan if you meet their guidelines. If not, your application will be rejected. There is no central blacklist of people with bad credit scores that lenders use as the basis of their decision.
Being turned down by one lender doesn’t mean you will be refused by another. The lender criteria vary from company to company. Lenders share information through individual’s credit reports. However, each lender has its own guidelines as their basis in examining and evaluating the information on your credit report.
You may have been refused a loan before, but it doesn’t mean you won’t be able to get approved for your nest application. You might need a loan to buy a car, or for car repairs, or for home improvements.
Some creditors will only accept those with perfect credit history. These lenders may have personal loans with the lowest interest rates to be accessible only to those with highest credit scores. So if you know your credit history is not so good, you know you’ll only be disappointed if you try to apply for the top loan best deals.
If you do this, it will likely to lead to rejection and could ruin your chances even further because each application you make will be recorded on your credit file. Multiple loan applications in a short space of time are often interpreted as an indication of financial difficulties and would make lenders suspicious. If you’ve had financial problems in the past, carefully select which loans to apply for and target specialist lenders who are actively looking for customers with impaired credit history.
Bear in mind that the larger the sum of money that you borrow, the lower the interest rate becomes. Conversely, the smaller the loan amount is, the larger the interest rate. This is true for all personal loans, whether bad or good credit. This is why taking out a personal loan for a very small amount of money is rarely worth the amount you’ll pay in the form of interest.
Blacklisted and Bad Credit Loan Options
There are loans specifically for people with bad credit. When you seek any sort of bad credit loans, your options include, but not limited to, unsecured loans, secured loans, payday loans, guarantor loans, and more. Unsecured loans do not hold any of your assets or important resources as security. These types of loans are used by companies to expand their consumer base by having people who don’t possess assets as their customer. These lenders are extremely risky on the part of the lenders with risks of losing the sum offered, and thus they just offer up to a certain sum over a certain period and put up a set of criteria.
Lenders take your word and trustworthiness that you’ll make the repayments. Secured loans, on the other hand, are guaranteed by an asset. The risk is lower, therefore interest rates are lower and the loan terms and conditions are more flexible as well. You have to read and understand the lender’s terms and conditions before you agree to the arrangement.
Loans for people with bad credit generally have a higher interest rate because of the risk involved. On top of this, these loans also have additional fees because lenders perceive the greater risk in lending money to someone who has a long history on not repaying their debts or who has a bad credit score for whatever reason.
Blacklisted Loans With A Guarantor
If you don’t qualify for a personal loan even with collateral, you have another option, which is a guarantor loan. Finding someone that will act as a guarantor or co-signer for your personal loan may be difficult, but it may also be the only way for you to access the loan amount you need.
A guarantor loan is a loan that requires another person to enter into contract alongside you and the lender. The guarantor signs a contract that essentially makes them responsible for your debt if ever you fail to make the payments as agreed. This is a very common alternative for people with bad credit because it allows them to take out a larger loan than they could not get from most other types of bad credit loans.
Not only will you have access to a larger sum of credit, but you will also have the opportunity to rebuild your credit by making prompt and consistent repayments. The interest rates will still be higher though than a loan for people with good credit standing. However, a guarantor loan still remains one of the more affordable ways for someone with bad credit to access credit.
No Guarantor Blacklisted Loans
If you have poor credit history then you have probably heard of an unsecured loan for people with bad credit. This would be your best option if you cannot get a guarantor to co-sign your loan.
If you own your vehicle, you can also choose to take out a logbook loan. This is where you use your vehicle as collateral for the loan. It is risky for the obvious reason that if you fail to repay the loan, the lender will seize your vehicle.
It is important to understand that with a logbook loan, the lender owns your car until you’ve repaid the money you’ve loaned out and the interest. Be aware that the interest rate is extremely high, so don’t just accept the first offer. Shop around and compare as many deals as possible before settling on one.
This kind of loan can also give you access to quite a large sum of money depending on the market value of your vehicle. A feature of this loan allows you to have fourteen days to back out of the agreement if you wish to do so. Logbook lenders usually issue cash checks, so you will be charged 4% of the value of the loan for an instant cash advance on the loan.
Another option for people with bad credit is to get a loan from a pawnbroker. The most common type of item pawned is jewellery. Pawnbrokers will generally accept almost anything of value, so it’s not limited to jewellery alone.
Blacklisted Loans From Direct Lenders, Are They Better?
It’s easy to find direct lenders of loans for people with bad credit or those you believe they are blacklisted. Anyone can have a bad credit rating at any moment, so bad credit loans are not uncommon. There are many online lenders who specialize in blacklisted or bad credit loans. This way, the borrower can avoid the hassle and embarrassment of going to the lender’s office and process the loan application in person.
You may also find many brokers and advertising websites that can help you find blacklisted loans or loans for bad credit people. These companies will make the search and match for you. This is helpful if you want to get as many comparisons as possible at one time. However, this may take some time since you’ll need to wait for the response of the companies. If you approach a direct lender, your inquiry is fast and specific.
Blacklisted Loans in the UK
You’ll be able to find many lenders in the UK offering loans for the so-called “blacklisted” people. These loans usually have a set number of regular payments. The maximum amount you can borrow is £25,000 over a maximum term of 7 years. These are also known as instalment loans.
A payday loan is another viable option for you, but it is usually for a shorter term. It is often paid back in a single lump sum payment on the borrower’s next paycheck. They have a higher interest rate than a personal loan.
Secured loans are also quite popular in the UK, where the loan is secured on your home. This type of loan is only available to people who own their own property, and not to people who are renting or living with family or friends. Secured loans normally have lower interest rates, but you must understand the loan’s terms and conditions.
Blacklisted Loans In An Instant
The best and probably the cheapest way to get some quick cash when you need it the most is to get it from family and friends. However, if borrowing from family or friends isn’t an option for you, or if a bank loan or overdraft request is not ideal, then you should have to consider one or another alternative microlender offering an instant, short-term cash loan.
In the UK, when people hear the term instant short-term loan, they would immediately think of quick loans and a payday loan because these are indeed the fastest way to get cash.
A payday loan is an instant cash advance on your salary. It’s an unsecured loan that requires no credit search or only a soft search, which doesn’t show up on your credit report. This makes a payday loan one of the only solutions for people with bad credit or lacks any significant history to prove to traditional lenders they’re reliable enough to pay back a loan.
Although interest rates are very high, the whole application process can be done online and some lenders will send you the funds within just fifteen minutes, making it a very popular option. They’ve become so popular that most people use mobile phones to complete the online loan application.
Instant loans are mostly used for cash emergencies because they’re not a long-term solution to any financial problem. They’re merely a short-term solution for a short-term cash flow problem. Taking out a payday loan is definitely one of the fastest ways of getting some extra funds, but it is certainly not the only option available.
What To Take Away
The key to dealing with an overwhelming amount of debt is to understand how you got into it in the first place. If you tend to overspend on your credit cards and cause unauthorised overdrafts, then perhaps you need to request an extension of your limit or switch to a regular account that simply doesn’t allow overdrafts.
If you can’t budget effectively, then it may be time to get some help from someone who does or a financial adviser. It would also be more beneficial to find ways of increasing your income to catch up on and maintain your debt repayments than to get another loan to deal with them.
This will help you repair your credit in the long run and you may even have some extra money left over to put away in an emergency fund. Once you have an emergency fund, you will feel more confident about your financial situation. This way, you’d be able to handle any emergency expenditure.
The important thing, however, is that you do a little shopping around to find the best deal, and not only one that has the lowest interest or APR but one that meets your needs. If you know you won’t be able to afford the monthly repayments, then it will obviously make sense to extend the term of the loan so that these repayments are more affordable, even if this means that you’ll end up paying more in the long run.
Before taking out a bad credit loan with any lender, you should always compare the rates and terms of lenders to find the best deals just as you would if you had an excellent credit rating. Many lenders prey on those with bad credit because they know that their options are limited so they will accept ridiculously high-interest rates and absorbent fees.
To avoid these dangerous lenders, you simply have to know all the facts on financial terms and procedures and check out all your possible option. If nothing else, at least use one of the many great loan comparison tools or loan calculator you can now find online to compare deals.