What are personal loans for bad credit?
Personal loans are unsecured loans, that means you do not need to submit collateral to borrow money. These loans allow you to pay off the debt over an extended period that maybe a few months or a few years. Personal loans for bad credit are unsecured loans that you take out despite bad credit history.
As the name suggests, these loans aim at personal uses; you cannot use them for commercial reasons. These loans allow you to borrow a large amount of money to meet significant expenses such as a wedding, home renovation, buying a car and consolidating debts.
Getting a bad credit personal loan with a bank is not possible, but Safe Money Loan provides such loans at competitive interest rates. Benefits of applying for these loans with us are:
- You will have 15 days that serve as a buffer against interest penalties and late payment fees when you struggle to pay down the debt.
- We allow you to prepay the debt with no fees provided you have made earlier payments on time.
- You will get exclusive deals during festival season.
|Loan amount||Repayment length|
|£1,000-£3,000||Up to 6 months|
|£3,001-£5,000||Up to 9 months|
|£5,001-£7,000||Up to 12 months|
|£7,001-£10,000||Up to 15 months|
Note - £1,000 is the minimum amount you can borrow as a personal loan for bad credit. If you need to borrow less than £1,000, consider applying for other short-term loans.
What are personal loan interest rates?
The interest rate for personal loans for bad credit depends on the amount you borrow. We charge fixed interest rates regardless of the amount you borrow. Since your credit rating is not stellar, the interest rates are likely to be a bit higher than those with good credit rating.
However, our interest rates are lower than other mainstream lenders. You must note that interest rates you are offered after you applied for a personal loan may be different from those you saw at the time of searching. It happens because we will look into your financial situation before making any decision.
Can you get a lower interest rate deal if you secure the personal loan?
Personal loans are mainly unsecured loans. No lender will ask you to arrange collateral. Likewise, we do not seek any security when you apply for these loans. Bad credit rating lowers the chances of borrowing money at lower interest rates, which is why some borrowers try to secure the loan. Since our motive is to offer you flexible lending, we never discourage you from doing what you are comfortable with, but you need to bear these points in mind.
- The deal will be cheaper if you secure your loan. However, it may put your asset at risk. If you fail to repay the debt, we will liquidate your asset to recover cash we lent you.
- The value of the secured asset must be higher than what you owe.
- Secured personal loans do not fall in a grace period of 15 days, which means you will be liable to pay off interest penalties and late payment fees if you miss any repayment.
How do Safe Money Loan decide to approve a personal loan?
Of course, there is no much role of a credit score left when you apply for a personal loan for bad credit, but it does not mean that we will not peruse your credit report. It tells us about the number of defaults you made in the past. Though we offer personal loans to bad credit borrowers, there is always a possibility of rejection. No lender would like to lend you money when the default risk is very high.
Your income statement also serves as a basis for our decision. Even though you have the freedom to borrow up to £10,000, but you need to have sufficient income to pay off the debt. We will evaluate your income sources to make sure that you are not borrowing more than your affordability.
Why choose us?
Applying for a personal loan for bad credit with us can be the right choice because of the following reasons:
Quick access to money: You will get cash the same day when you put in the loan application form. After you submit your income statement, you will get money within 15 minutes if approved.
Repayment in instalments: Even if you borrow a small amount, you will pay off the debt in fixed instalments.
Rebuild your credit score: Our personal loans can help you rebuild your credit score if you make your monthly payments on time.
Safe Money Loan provides personalised personal loans for bad credit at affordable APRs. Apply for the loan today.
Personal Loans for Bad Credit FAQs
1. How to get guaranteed approval of my loan without a guarantor?
If you need a large amount of sum but don’t have time to visit a lender, fill out the lengthy and complicated paper form, and then wait endlessly for the approval. In this situation, you can consider taking a loan from a direct lender like Safe Money Loan with guaranteed approval and no guarantor. Apply online on the same day and once approved, you will receive the money into your bank account within few minutes after approval.
2. How can I get a personal loan with bad credit?
If your credit score is not good enough to impress a traditional lender or credit union when seeking a loan, then you can consider applying for a personal loan with bad credit from direct lenders like Safe Money Loan.
Direct lenders have straightforward and smooth online application process wherein you need to fill a simple application form with the necessary information and bank account details and submit your application. Once your application is approved, you will get the money into your bank account within 24 hours.