Instalment Loans – Even for Bad Credit
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Representative 277.5% APR Representative Example: Borrow £700 and pay £111.27 per month for 12 months at an interest rate of 140% per annum (fixed). The total charge for credit is £635.24 The total amount repayable is £1335.24. Representative 277.5% APR (variable). Your APR rate will be based on your circumstances.
Warning: Late repayment can cause you serious money problems. For help, go to MoneyAdviceService.org.uk
When an unexpected bill suddenly wrecks havoc in your day to day finances or your child suddenly gets rushed to the hospital, sometimes you need to take out installment loans to deal with such unexpected situations. Depending on the amount that you need and how you want to pay it back, installment loans are options that you can consider. The investments are typically short-term with many fixed monthly payments rather than one single lump-sum payment.
You can take out anywhere from £50 and £2,500 depending on your:
- Credit history
- Income level
In the UK, installment loans can last for a number of years although borrowers have the option to pay them off in advance depending on the lender and the agreement. If credit history is something that worries you but you need to secure a reliable loan that can be paid back in a set period of time, like six months, then installment loans could be the ideal option for you.
Installment loans with a guarantor
Installment loans with a guarantor are unsecured types of loans wherein another person outside you and the lender enters the loan deal and agrees to shoulder the responsibility of the loan's repayments once the borrower is unable to keep up with them. The loans are popular options to people with poor credit rating or those with little credit history who would otherwise find it difficult to be approved of an unsecured loan because of their unappealing credit status.
It's important to note that the interest rates for installment loans with a guarantor can sometimes be higher than other forms of investments and having a stable relationship with your chosen guarantor is a must as the person will risk losing his property and assets if you default from your loan.
If it's your first time securing credit or you have an adverse credit history, installment loans with a guarantor can be an ideal option for you. This is because with installment loans with a guarantor you can:
- Secure larger sums of money that you can pay for a set period of time
- You can enjoy more favourable interest rates than other bad credit loan options
- The payment terms are flexible and often tailored to your needs and present circumstances. You have the option to pay off your loan earlier to save on interest costs.
- Some lenders who will cater your need for an installment loan if you can offer a suitable guarantor.
- The process of taking out an installment loan with a guarantor is quick and easy.
How to secure the best installment loan with a guarantor
The best installment loan with a guarantor is often that one that is cheapest to pay back. The total cost that you will have to bear in your loan deal will be determined by several key factors such as:
- The amount your borrow. Installment loans with a guarantor allow you borrow anywhere from £50 and £2,500 depending on the lender and your qualifications. Your repayments will be divided equally, which means you will be paying a fixed amount every month.
- Annual Percentage Rate or APR. It is the interest rate levied on your loan deal. The APR's for installment loans with a guarantor can be higher than other forms of traditional loans so make sure that you determine first on whether or not you can afford the monthly payments before you make an application.
- Loan term. It indicates the period in which you will need to pay back the money that you borrowed from your lender. Most lenders offer terms from 6 months to several years, but a shorter loan term can save you more because you pay less in interest overall.
Installment loans with a guarantor can aid you in securing the funding that you need if you are struggling to obtain an unsecured loan. However, be sure to borrow what you can afford to avoid entering into a credit agreement that will become a bane to your finances.
Your guarantor's requirements
Anyone can be your guarantor as long as the person is willing to enter into a loan deal with you and agree to cover its repayments if you are unable to. It can be a friend, family member, or co-worker but they must also be:
- At least 18 years old (some lenders require them to be over 21)
- In full time employment
- Someone other than your spouse
- Someone who does not share a bank account with you
Make sure that your guarantor completely understands the serious responsibility that he/she needs to bear if you cannot make your repayments before applying for an installment loan with a guarantor.
Installment Loans with no guarantor
Installment loans with no guarantor can help you enjoy reliable funding without the need to find a suitable guarantor to back up your loan deal. To find the best loan option that is ideal to your needs and circumstances, follow these three simple steps:
- Determine the amount that you need to borrow
- Decide the loan term that is suitable to your budget and present financial standing
- Compare different rates from lenders to find the one that offers that cheapest rates
The best installment loan option will allow you to borrow the amount of money that you need at the lowest rates possible with affordable payment terms. You can rely on a loan calculator to determine the different rates and loan terms available and how much it will cost you before you make an application.
The ideal installment loans with no guarantor
There are plenty of installment loans with no guarantor in the UK and you can easily access them online through numerous reputable online lenders. All of the available options, however, fall into two main categories which includes:
- Unsecured installment loans with no guarantor which provides for personal loans and peer to peer loans
- Secured installment loans with no guarantor such as the homeowner, logbook and several debt consolidation loans.
So which is the ideal option? Unsecured or secured installment loans with no guarantor? This will depend on your unique circumstances, the amount that you need to borrow and the period in which you want to pay it back. Secured installment loans can provide larger sums of credit than unsecured loans and typically have lower interest rates and longer repayment periods. However, they can put your asset at risk and the lender has the legal right to take possession of your home or vehicle and sell it to recover the money that you still owe them when you default from your loan.
The basic qualifications
Before you apply for an installment loan with no guarantor, make sure that you know what the basic requirements are which could include:
- Having an income that checks affordability for the loan's repayments
- Being a homeowner (for secured installment loans with no guarantor)
- Possessing a strong credit record (for unsecured installment loans with no guarantor)
There are lenders that provide a soft quote which can determine whether or not you will be approved for their loan service without affecting your credit record. This is something that you may want to look into when you apply for an installment loan with no guarantor.
Installment loans for bad credit
Securing a loan from a traditional lender like a bank can be quite difficult if you have bad credit. Fortunately, there are plenty of lenders in the UK who specialize in providing installment loans for people who don't have that stellar credit rating. These lenders will focus on your financial capability to afford the loan rather than your traditional credit score. Some of the important things that you might want to know about installment loans for bad credit and the lenders providing them include:
- Most traditional loans put a premium on good credit standing but not all borrowers in the UK follow this. If you are one of the many who has dealt with money problems in the past, there are still plenty of lenders who will cater your need for funding despite your credit score through installment loans for bad credit.
- The most crucial factor in getting approved for an installment loan for bad credit is your ability to repay. If you possess a reliable income and an active bank account, bad credit installment loan lenders will treat you as less risky compared to traditional lenders and credit card companies.
- When you have decided that an installment loan for bad credit is the ideal option for you, be sure that you know what the requirements are before you apply. While there is no such thing as guaranteed approval, ensuring that you are eligible before applying gives you the best chance of getting approved.
- Every lender has its unique lending criteria so compare different companies and remember only to take out the amount that you need. It will help save a lot of costs in the long run and will help make a positive impact on your reputation to lenders.
- An installment loan for bad credit will be a sound financial option if you have a solid repayment plan in place that is suitable to your present circumstances. Remember that you may incur additional fees and penalties if you don't make your repayments on time and it can negatively impact your credit score as well.
Lastly, never forget to go through every term and condition before you sign a legally binding loan contract. It will ensure that you know what the payments are and what the possible consequences will be if you try to violate the agreement.
Installment Loans from a Direct Lender
When you decide to opt with installment loans from a direct lender, this means that you will be foregoing the services of a broker or middle man. While you will be limiting your options to only one (a broker allows you to choose from a panel of lenders) the process could be a lot quicker and more simplified when you apply straight to a direct lender. There are even direct lenders that can process your application in less than one hour although this is mostly for smaller amounts. Still, majority of direct lenders who provide installment loans in the UK will at least fund your loan in the same day you made your application.
Bad credit installment loans from a direct lender
Bad credit can be a major hindrance in taking out a loan as most lenders in the UK won't cater your need for funding no matter how dire it is if your credit rating is not that stellar. Luckily, your adverse credit rating won't be much of a factor if you apply from a direct lender who specializes in providing installment loans for people with bad credit. These lenders will look at other areas of your loan application and if you can afford to repay your installment loan, your chances of getting approved is already pretty high. And because the loans they are offering are paid through installments, it means that it would be more affordable to you and therefore easier to get approved for.
No guarantor installment loans from a direct lender
You can also take out installment loans with no guarantor from a direct lender and enjoy quick and reliable funding with very minimal requirements. Mostly, when you apply for the financial products from a direct lender, it will only take several minutes to complete an application with no paperwork and hectic steps involved whatsoever as it is done purely online. There are also no hidden fees and upfront charges when you avail for the loans. However, if you need a longer term say more than a year, you may need to offer a guarantor or secure it with an asset.
No Credit Check installment loans from a direct lender
While lenders will need to conduct some form of credit check to determine your eligibility for a loan, rest assured that your credit rating won't become much of a factor. But there are, however, companies that do provide installment loans without any credit checks involved such as those that provide text loans - loans that can be processed through text! If you want to ensure that a direct lender is indeed a legit no credit check installment provider, be sure to checks its authorisation or licensing from the FCA or Financial Conduct Authority's website.
Installment loans with instant approval
Normally, installment loans and installment loans with instant approval are those provided by online lenders that will approve your application without credit check in the shortest period of time. Bank loans have very strict lending requirements and this is often the primary reason why completing a loan from the traditional lender could take several days and even weeks to complete. Online lenders however, are a lot different with their lenient lending criteria and advanced systems that can evaluate your application and determine whether you are eligible or not in a matter of minutes. There are companies that can transfer the money that you have availed for in a matter hours but typically it would take just 1-2 days for most lenders to wire your funds to your bank account,.
How instant approval works
The process needed to secure an instant installment loan is pretty straightforward. It can be accomplished through your mobile phone anywhere you are in the UK at any given time as long as you are connected to the internet. The necessary steps needed to take out instant installment loans online are few and easy which includes:
- Complete an online form in a lender's website which will ask some basic information about yourself, your employment details or source of income if you are self-employed, and bank account info. Once you have completed the form, simply click the submit button and it will be sent directly to your lender.
- Next, you will receive an instant response from your lender notifying you on whether or not your application is approved.
- If you are approved, the lender will work with you on a finalised payment schedule, and you will then electronically sign and verify your loan documents.
The process is that quick and simple! It is the reason why installment loans and instant installment loans are increasingly becoming the number one option for many borrowers in the UK today.
Enjoying same day funding
Installment loans that provide same day funding or payouts are easily available to numerous direct lenders in the UK who have local storefronts spread across the country. Once your application is approved, simply drive to the lender's nearest store and pick up your cash or check. If you don't have time to drive to a physical location, you can also have your money deposited into your bank account in the same day or the next business day depending on the lender.