It can be difficult to know where to start when you are looking at how to get bad credit loans.
You may think that if you have a poor credit history then your options are limited when it comes to applying for finance.
While to some extent this is true, if you know where to look there are many lenders offering poor credit loans to those who need them.
How to get bad credit loans
There are a variety of methods you can use to apply for a bad credit loan.
For instance, you can apply online, by telephone or in a physical shop.
CashLady takes a look at these different methods and explores the pros and cons of each one.
How to get bad credit loans online
If you are looking for poor credit loan providers you can find many of them online.
Many short-term lenders offer bad credit rebuilding loans that you can apply for through their website.
This usually involves completing an application form with information about yourself and your situation. After you have submitted this form, the lender will then make a decision about whether they can approve your loan application.
The time it takes for a loan provider to approve your application can vary from lender to lender. If this is something that is important to you, then you should take a look at how quickly they say they approve applications on their website.
If your application is approved, the money will typically be sent to your bank account within a few hours.
Applying for bad credit loans online with one lender
Almost all short term lenders will have a website where you can apply directly for a personal loan.
What are the advantages of applying for bad credit loans directly online?
By applying for a loan through the internet you can request finance without having to leave the comfort of your own home.
If you are confident in doing your own research then you could choose to apply to just one lender through their website.
What are the disadvantages of applying for bad credit loans directly online?
The quantity of companies offering poor credit loans can be intimidating.
It is important to make sure that you get a loan from a provider who is FCA regulated. This way you can be sure that you are borrowing money from a reputable company.
Research can be time-consuming and it can be difficult to know if you are getting the best deal.
One of the main advantages of shopping for products and services online is that you can compare prices and potentially save money.
Searching for a loan online is no different. Without adequate research, you cannot be sure that you are getting the best ‘value for money’ if you just go directly to one lender’s website. Many people find that they simply do not have the time to do this intensive research.
Applying for bad credit loans through a broker
By going through a broker your application will be seen by more than one lender.
CashLady has a panel of trusted short-term lenders who will review your loan application.
What are the benefits of applying online through a broker?
The advantages of applying online still apply, in that the convenience factor means you will not have to leave your home to apply for finance.
There are also many more positives of going through a broker rather than applying direct to a lender:
- You will only have to fill in one application form to apply to a number of different lenders
- You do not have to conduct extensive research. Because, brokers like CashLady already have a trusted panel of FCA regulated short term lenders
- Your chance of getting approved for a loan dramatically increases because you are applying to more than one lender
- You could get multiple loan offers so you can choose the best deal for you
What are the disadvantages of applying online through a broker?
Some people worry that brokers will charge them for their services.
Whilst this can be true of some online brokers, CashLady never charges you to make an application for a loan.
CashLady also never works with any fee-charging loan providers. By applying through CashLady you can be sure that any offers you receive from lenders will not involve any upfront fees.
How to get bad credit loans through call centres
Many short-term lenders who are based online will only let you complete your application through their website.
If you are not able to fill in an application form online or do not like using the internet, it is possible to get poor credit loans through call centres.
The Money Shop allows you to apply for a loan over the telephone.
What are the benefits of applying for a loan over the telephone?
If you do not have an internet connection or do not like to fill in online forms, then applying over the telephone for finance can be an option.
Just like applying online, you will not have to leave your home to apply for a loan.
What are the considerations when applying for a loan over the telephone?
It can be difficult to take in a lot of information over the telephone. If you apply online you will be able to read and take in information in your own time.
If you are telephoning just one lender to apply for a loan, you may not be obtaining the best deal. Telephoning a wide range of different lenders to ensure you are getting a good deal can be time-consuming.
How to get bad credit loans through physical shops
If you are looking for poor credit loans there are some loan providers who operate out of physical shops.
This means that you can go to the high street to apply for poor credit loans.
What are the advantages of applying for bad credit loans through physical shops?
If you like to talk to someone face-to-face you may prefer to go to a physical shop to apply for your loan.
What are the disadvantages of applying for poor credit loans through physical shops?
There are only a limited number of loan providers who have physical shops. Many poor credit loan providers now work primarily online.
By only using loan providers who have physical shops you could be severely limiting your options. Because there are more online lenders you could find it easier to find a good deal on the internet.
Online-based businesses also tend to have lower overheads than those that have physical shops. This can mean that you may be able to get a better deal from an online-based loan provider.
Going to a physical store can be much more time-consuming. But you will also have an opportunity to speak directly with a real person who may understand your needs and circumstances in better detail.
Applying for a loan online or over the telephone does not require you to travel to and from a shop. If you need to drive there or take a bus, it could cost you money to go to the physical shop rather than applying online from your house.
Should I only consider bad credit loans?
It is important that you consider your other options before deciding on a bad credit loan.
Poor credit loans usually end up costing you more than other personal loans because the interest rate and APR tend to be higher.
You should also make sure that you are only borrowing what you can comfortably afford to pay back – both now and in the future.
Deciding how to get bad credit loans can be a challenge.
There are many loan providers out there who offer you the ability to apply for bad credit loans online, on the telephone or in a physical store.
Each method comes with its own set of benefits and disadvantages.
If you want to apply for a loan from the comfort of your own home then you could try a loan provider offering the opportunity to apply online or by telephone.
Applying online enables you to digest information at your own pace. For many people, it can be the least time-consuming method of applying for a loan.
Going through an online broker allows you to apply to a panel of lenders by only filling in one application form. This can increase your chance of being approved compared to applying to only one lender.
Applying through a reputable online broker will also save you time. Because you already know that the lenders your application will be going to are all FCA regulated.
As with applying for any kind of finance, you should be sure that you can comfortably afford to make the repayments before signing up.