Finding the right lender can be difficult. And if you have bad credit, your options may be more limited. So if you’re looking for a short term loan, you may be wondering which lenders are more likely to approve your application with a poor credit history.

The first thing to consider is what type of lenders offer bad credit loans, and what loan options they have available, from secured homeowner loans to unsecured payday loans.

Loan Companies for Bad Credit Loans

No matter what type of loan you’re looking for, and regardless of your credit score, you should be able to find a lender that can help. As the lender will often be taking more of a risk though, you should bear in mind that you may end up paying more interest than people with exceptional credit scores.

Perhaps the most common type of bad credit loans are payday loans. A payday loan is usually borrowed over a short period of time, and repaid in full after a few days or weeks – typically your next payday. While the interest rates can be high with payday loans, as they are a short term loan solution, you probably won’t pay back much overall. For instance, a loan of £200 over a week would cost around £10 in interest.

Another type of loan that’s aimed at those with a poor credit history is a guarantor loan. You may have heard of lenders like Amigo Loans, who solely provide guarantor loans, but there are numerous other lenders who offer such loans. With a guarantor loan, your guarantor acts as security for the loan, as they agree to cover the repayments if you can’t pay them. The interest rates for these loans are usually better than payday loans, but it isn’t always easy to find someone you trust to be your guarantor.

Can Lenders Offer Guaranteed Loans for Bad Credit?

Unfortunately there is no such thing as a guaranteed approval loan. Lenders will have different lending criteria, and won’t be able to approve every application they receive. But some lenders exclusively cater to those with bad credit, so should be able to lend you the funds you need if you meet the following eligibility criteria:

• Work either full time or part time
• Be a UK resident
• Have a UK based bank account
• Be aged 18 or over

Lenders offering bad credit loans tend to be more concerned about things like your income and expenditure than your credit history. As long as you can afford to repay the loan without putting yourself into any difficulty, they should be able to help.

Key Points

• There are a variety of lenders that can offer loans for people with bad credit
• The most common types of bad credit loans are payday loans and guarantor loans
• While no lender can offer guaranteed loans, some specialise in bad credit loans, and will look at factors other than your credit score when making a loan decision
• When lenders talk about ‘no credit check loans’ they are referring to soft credit checks, which don’t leave a footprint on your credit file

Can You Get No Credit Check Bad Credit Loans?
Just like guaranteed approval loans, no credit check loans don’t really exist. When a lender states that they offer no credit check bad credit loans, they usually mean that they only perform soft credit checks, not hard checks.

As a soft credit check doesn’t leave a footprint on your credit file, it won’t impact your credit score. A hard check, on the other hand, does leave a footprint, and too many hard credit checks in a short space of time can lower your credit score. It’s therefore important to find out what sort of check is being carried out before you make a loan application.

My Financial Broker only use soft credit checks when you apply for a loan using our services, therefore your credit score won’t be affected. And while we can’t guarantee approval for all loans, we work with a number of lenders that specialise in bad credit loans, so should be able to find you a lender that can help, regardless of your credit score.