Frequently Asked Questions About Personal Loans for Bad Credit
Been refused for a credit? Don’t know where to turn? Don’t worry – there are still a number of options available to you. It can be extremely difficult to secure finance if you have a less-than-stellar credit history. In fact, having bad credit can reduce your chances of finding a loan or credit card. But there are a number of lenders who will still provide you with their services – it’s just a case of looking in the right places. This article explores the different steps you can take to obtain personal loans for bad credit , and how you can secure finance to cover a shortfall in funds, or if you are experiencing a financial emergency.
What are personal loans for bad credit?
A personal loan can be used to pay for a number of different goods or services. People will often apply for a personal loan if they don’t have the capital to cover the money need. A number of retailers will offer personal loans to customers, and individuals can then re-pay these loans over a prolonged period of time – allowing them to budget more effectively and control their finances. A personal loan can also be applied for if you are experiencing a shortfall in your funds, or to bridge the gap between now and when you next get paid.
What should I look for when applying for a personal loan?
Different lenders will offer personal loans for bad credit with different interest rates, so it’s always a good idea to shop around and find the best deals. A price comparison website is usually a great place to start. Here you will be able to compare a contrast different personal loan options. Including repayment terms and interest rates – providing you with all the information that you need when finding the best service for you. You will want to find a lender that provides good value for money, low interest rates, and great customer services. Third party review websites can also be beneficial when applying for a personal loan. These website feature reviews that have been left by consumers who have used a particular lender in the past, so you will be able to decide on the best loan company in your circumstances.
What should I know if I have bad credit?
If you have bad credit, you might be more limited when it comes to finding a personal loan. However, you might have to be a higher rate of interest on your personal loan. Once you have found one or two personal loan companies that you are interested in, the next step is contact them directly and obtain a full quote for the loan. Speak to a customer representative and find out the terms of loan, including interest rates and repayment options.
How much interest will be charged on my loan?
Interest may be charged at a higher rate on personal loans if you have bad credit, so it’s always a good idea to do your research. Many lenders will include information about their interest rates on their website, or you can contact the company directly to find out more. Remember – short term personal loans may also come with a higher rate of interest than long term personal loans.
How long will the application process take?
In many cases, you will receive your loan promptly, and the money will be paid directly into your bank account. You will then receive personal loan documents in the post or to your email address. Remember to keep these document safe as you may need to refer to them at a later stage. The loan company will tell you when your repayments are due, and how much interest you will need to pay on the loan, as well as any penalties for late payments.
How do you apply for personal loan?
The type of loan that you will be accepted for will depend on a number of factors, such as the amount you are applying for. Many companies have simplified the loan application process to make it easier for applicants to apply for finance. In some cases, you may receive an instant decision as to whether you loan application is successful or not, and you can apply directly online. In other cases, you might be required to supply some additional information, such as driving license to confirm you identity, or bank statement to confirm your address. Contact a company representative and find out with document you will need to provide in order to further your application.
Should I check my credit report?
Your credit report will often dictate the type of finance that you can apply for, so it’s a good idea to check your credit report – especially if you have been rejected for finance in the past. Your credit report is available from several credit reference agencies, and can be accessed online. You will normally have to pay a small fee to use this service, but many credit reference agencies let you check your report for a short period of time for free (usually 30 days), so long as you cancel during this time. Alternatively, you can apply for a paper copy of your credit file to be sent to your address. This report will include details of any credit agreements you have had in the past, as well as any defaults on your account. Check your credit report for any mistakes, as this could be preventing you from obtaining credit.
What happens when I receive my loan documents? Who do I contact if I have a query?
One you have been accepted for a personal loan, you will want to read through you loan documents and check the small print. Find out if there are any penalty charges for early repayment of your loan, or other charges that you were not made aware of. If in doubt, contact a company representative and ask them for further information. Lenders provide a number of ways to contact members of staff, including via phone, email, or even live chat. For further detail, refer to their website.