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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.
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Quick and Easy Process to the money you need. The most reliable lenders from across all the UK
Representative Example: Borrowing £14,500 over 5 Years, repaying £324 per month, total repayable £19,438, total interest payable £4,938. Annual interest rate 12.9% (fixed)
305.9% APR. £400 borrowed for 90 days.
Total amount repayable is £561.92 in 3 monthly instalments of £187.31.
Interest charged is £161.92, interest rate 161.9% (variable)
How to obtain Consolidation Loans for Bad Credit in the UK
To become eligible for debt consolidation loans in the UK, you will typically need to possess at least a good credit score and a stable source of income that can afford the repayments of your loan. While it would be challenging to get approved for a debt consolidation loan if you have a low credit score or bad credit, it doesn’t entirely mean that you can can’t successfully obtain reliable funding from a legal lender.
So before you panic and resort to desperate measures, try to relax and take comfort on the fact that there are still consolidations loans for bad credit available for you no matter what your current credit rating looks like.
Important steps to consider in securing consolidation loans for bad credit
Majority of lenders in the UK have financial products designed to consolidate debts but if you are someone who has bad credit, banks, credit unions, and other traditional lending institutions will not cater your application for one. Nevertheless, there are still other financing companies in the country who will consider your loan request despite what your credit history says and there are plenty of them online.
Follow these 3 vital steps in securing consolidation loans for bad credit:
- ) Check your credit rating
You will need to know how bad your credit rating really is and you can go about this by grabbing a copy of your credit file. There is usually no cost involved in accomplishing this step but you should expect to wait for more than a week for your credit file to be ready. You can also secure a free copy from Equifax and once you have it in your hands, try to check for these information:
- Missed and late payments and defaults
- Excessive inquiries
- History of being bankrupt
- Record of CCJs or Country Court Judgments and IVAs
If you know what your bad credit standing is, it would be easy for you to find the lenders who are ready to provide you with the ideal consolidation loans for bad credit. Avoid making multiple applications to lenders who do not offer debt consolidation loans for bad credit as every inquiry will be recorded in your credit report and having too much of them will paint a negative picture to your creditworthiness.
- ) Know your current financial situation
List any and all current debts that you have and try to decide which of them you will need to consolidate into a single loan. Use these points as your guide:
- Prioritize secured forms of debt over unsecured ones as they are more crucial given the real risk that your asset will be seized if you won’t pay them back.
- Prioritize debts that have high interest rates. If you manage to find a debt consolidation loan agreement that is cheap, you can save money in the process.
- Review the terms and conditions of the loans and debts that you will want to consolidate and find out if they feature charges and fees for advance payments. Choose those that don’t have this kind of condition.
- ) Consult the lender before applying
It would be best to consult the lender first before you make an application for its debt consolidation loan service. Lenders in the UK are more than happy to guide you in obtaining the right financing solution that will help ease your current debt situation. They can also tell you firsthand whether or not their loans for consolidating debts are ideal for you given your circumstances. If they are not, they can even refer you to other lenders who may be able to help you out.
Online Debt Consolidation Loan Lenders
Banks, credit unions, and other traditional financing institutions will normally reject your application for an unsecured debt consolidation loan if you have bad credit UK. It’s simply part of their lending criteria that unfairly deems a poor credit history as an automatic red flag and there is just nothing that you can do about it.
What you can do however, is search for reputable online lenders in the internet who provide debt consolidation financing solutions to borrowers of all credit ratings. These lenders will let your borrow money that is enough to pay off your existing debts today and pay it back it back based on an agreed payment term and set of conditions. And unlike banks and other traditional lenders, online debt consolidation loan companies will look at every aspect of your application and not just on your credit rating to determine your eligibility.
There are plenty of online lenders in the UK that offer consolidation loans for bad credit and you can easily find a good number of reputable companies who are more than willing and capable to help you secure legit funding based on your unique needs and circumstances by doing a bit of research.
Online debt consolidation loan guarantors know full well that credit scores and ratings don’t tell the whole story and are is just one of the many ways to gauge a person’s ability to repay a loan. They will typically present you with a number of options that you can consider and will guide you on each one so you can make the best decision.
Guaranteed debt consolidation loans
If you are in an emergency situation because there is an urgent payment that you need to make, there are also guaranteed debt consolidation loans that you can look into. These consolidation loans for bad credit are normally offered in small amounts with short payment periods that won’t last more than a year. The eligibility requirements are also fewer, quite basic, and easier to satisfy than standard personal loans for debt consolidation.
What’s more, credit rating is not important for guaranteed debt consolidation loans as lenders are normally more concerned if you can afford to pay back the money that you borrowed on time which means that if you have a stable source of income that is enough to cover the repayments of your loan, getting approved is almost a guarantee.
The most important thing to bear in mind when it comes to consolidation loans for bad credit however, is that the interest rates that they feature will normally be higher than standard debt consolidation loans. This is something that you need to think about before you apply.
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This is my second loan with Bridge Finance and both times they have been very helpful and informative. Explained everything to me and made sure I understood the process and what would happen. I would recommend Bridge to anyone.
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