Bad Credit Loan Options

When you have a bad credit rating, it can be next to impossible to secure a loan through traditional means. Banks rely heavily on your credit score to determine if you are eligible for a loan from them. If you have a bad credit score and need to secure a loan, there are several other options that you can consider. All of these options will either lend to you even though you have bad credit, or will not even take your credit score into account.

  1. Monthly Payday Loans – This type of short term loan is usually taken out over the course of 30 days. Typically they are for small amounts, between £100 and £750, although there may be a smaller limit if this is your first time borrowing. The interest rates are around 30 percent, so the more you take out, the more you will have to pay back in interest. Keep this in mind when deciding on how much to borrow.
  2. Logbook Loans – A logbook loan is ideal for a anyone who has poor to no credit, and currently owns a car. If this is you, consider a logbook loan. With this type of loan, there are no credit checks involved, and all you need is to be the owner of a car and some proof of income. A representative from the logbook loan company you choose will work out a repayment schedule with you so that you don't get in over your head. This makes taking our a loan and paying it back nice and simple for you.
  3. Doorstep Loans – If you are unable to leave your home, or simply want the convenience of being able to take out a loan without leaving your house, consider a doorstep loan. With a doorstep loan, someone will come to your house to deliver the money, and collect payments. They will also work with you if any problems arise or if you have any questions. Some people like to have a more personal touch when getting a loan, and if that's the case, you'll want to think about a doorstep loan. A note of caution though, these loans typically have high interest rates.
  4. Pawning – If you have something valuable, you can secure a loan from a pawnshop. They can give you cash on the stop in exchange for holding onto your item. Pawning is not usually recommended though, as the loan rates can be very high and if you fail to make payments, you could lose your valuables. This should be considered a last resort type of option. Hang on to your valuable items and consider one of the above loan options if you can.