There are many reasons why you might have found yourself in the position.
You may have simply been terrible at managing your money and missed a few payments, have County Court Judgments (CCJ’s) or been made bankrupt.
Due to this it is highly unlikely you will be accepted for a standard market loan and so will have to look at a bad credit loan to achieve the money required.
Looking For Loans For Terrible Credit?
When taking out a bad credit loan, be aware that the interest rates are likely to be a lot higher than the standard market loans that are available for those that have a good credit score.
However, we do have some loan lenders that do not charge high interest rates when you need loans for terrible credit.
Having terrible credit need a loan means that you are a higher risk to the provider of not paying back the agreed loan and so the company needs to balance this risk with higher rates.
Types of loans for terrible credit
If you have terrible credit and need a loan, there are 5 types of bad credit loans you can look at to suit your situation.
A personal loan is the most popular and means you can borrow from 1000 – 25000 over 1 to 7 years.
These types of loans are ideal as they will have a fixed monthly payment and so it would be easier to plan for the future.
Guarantor Loans are another option for those that have a terrible credit history.
They are similar to personal loans however it requires a family or friend to be a guarantor.
This means if you fall to pay back the loan it will fall on the guarantor to pay back.
For those with terrible credit and need a loan, there is the option of a home owner loan.
Your home will be placed as a guarantee and if you fail to repay you are at risk of losing your home.
Installment loans for those with terrible credit are loans where you pay back an agreed amount every month over a chosen period of time.
Lastly, logbook loans are when you secure the loan against your car and so like a home owner loan, if you do not pay back your loan as agreed the lender will take your car as payment.
Borrow Money Wisely
Although when you need loans for terrible credit, bad credit loans tend to have a lower interest rate the more you borrow.
However make sure you do not borrow more than you can afford to pay back.
The good thing about taking out a bad credit loan if you have terrible credit, is that you are very likely to be accepted, and it can provide help to consolidate debts or make a much needed purchase.
Another great advantage is that it will help build a better credit profile by showing you are capable of keeping up to date with your loan repayments.