Bad credit? Are quick loans an option that's available to you? Quick loans are perfect if you have a financial emergency and you need money immediately, but is your poor credit score going to stand in your way? Let's find out.
Check Your Credit Score
Check before you apply
Whenever you want to apply for a loan - quick loans included - you need to first check your credit score and make sure that it's up to snuff. Applying for loans blindly can not only get you rejected, but it will also negatively impact your score and your ability to apply and be accepted for other financing options. You can get a report fairly easily by going online.
No unpleasant surprises
You might find out that your score is actually better than you thought, or on the contrary - it may turn out to be lower than you imagined and that may affect your eligibility for different types of financing, including credit cards and unsecured loans of every variety.
Use the soft search tool
The easiest way to make sure that you are actually likely to be approved is to perform something called a soft search, which tells you whether or not you would be accepted for the loan you want without actually needing to apply. This will not affect your credit score and it may save you time and money.
Look out for errors
Credit reports may also draw attention to something you may have not even taken into consideration before - mistakes in your credit score. You see, these reports aren't foolproof, and it's more than likely that different lenders may not have their records updated, in which case they may be operating with outdated information that may not be to your advantage. Take this opportunity to correct any such mistakes if you want to get a fast loan.
How Do You Get Quick Loans?
The nature of this kind of loan means that the entire process has a sense of urgency to it and thus, moves along a lot faster than a normal procedure would. Quick loans are designed to provide financial aid in an emergency situation, so time is of the essence here.
Of course, there are some basic details that are essential in order to get a loan, but you won't need to provide extensive information. While eligibility requirements may differ, here are a few of the common ones most lenders share:
- Be a UK resident
- Be over 18 years of age
- Have a UK bank account
- Have a full-time job or earn over a certain amount monthly
After you're done with this part, which is usually contained to a quick online form that you can fill out in just a few minutes, the lender will move on to perform the credit check.
Can You Get Quick Loans With Bad Credit?
The million-pound question is whether you are eligible for quick loans with bad credit. First, let's talk about some of the characteristics of quick loans. They're offered on an urgent basis, they're given out in smaller amounts, and they tend to have short repayment terms. Because the loan amount is low, it's not as risky as normal unsecured loans, so you have a better chance of getting one with a bad credit score.
Credit score is a reflection of your financial behavior
Before you look into borrowing with bad credit, you first need to understand that your score is a reflection of your financial history and behavior. It will demonstrate to potential lenders whether you pay your debt off on time, if you miss payments, pay your bills late, etc. Even if you've experienced these things, you should still be eligible for quick loans.
If these behaviors are recent or you've got a history of repeating them, you may not be approved, or you may have major restrictions. Some lenders may not be comfortable extending a line of credit to you if you already have unpaid debt.
Affordability checks are still performed
Something else to keep in mind is that an affordability check will be performed anyway, even if you're looking to get a quick loan for an emergency expense. It's true that it's a quicker process, but it's still necessary.
All in all, it's possible to get quick loans with bad credit, but it's always best to be aware of your financial situation and how far your score will get you. You may be approved, you may have restrictions, or you may be rejected altogether.