Which loan company is the best for bad credit?

If you have a bad credit history, access to mainstream credit products can be difficult. But is it fair that your borrowing past stops you from being able to borrow when you most need to in the future?

Maybe it's an emergency expense or an unexpected bill. Sometimes it can’t wait until payday, and it’s not always convenient to use money from your savings (if you even have savings, of course). So, what are the other options available for people who want to borrow with a bad credit history?

Bad Credit Loans

Well, there is such a product as a bad credit loan. It allows you to borrow a few hundred pounds for a couple of months so that you can meet your cash flow needs on the odd occasion that things don’t go according to plan. If it sounds familiar, it may be because you’re thinking of a payday loan, and you wouldn’t be wrong in connecting the two because they are exactly the same loan product. The reason payday loans are also called bad credit loans is because they are accessible to people with bad credit.

Creditworthiness Assessments

The affordability and creditworthiness assessments will take your credit score into account, but you won’t be automatically rejected if it isn’t brilliant. Even if you do get declined initially, most bad credit lenders will give you the option to have your application manually reviewed, so you can offer further information about your financial circumstances to create a fairer, more accurate picture of your finances.

Where can you find a bad credit loan?

The other great thing about bad credit loans is that most of them are available online. Online lenders make up a massive percentage of the short term loan industry and it’s because being an online direct lender lends itself so well to this kind of product. The application forms are quick and easy, and thanks to online banking services, your loan can be transferred instantly upon approval so you could have the funds the same day.

So, which loan company is the best?

If all of the above sounds great, you might be wondering which loan company is the best for bad credit. Well, it’s difficult to say because different payday creditors will offer different services. Some services are particularly unique — for example, you can repay weekly instead of monthly, and some will offer repayments over 12 months where others will offer repayments over 3 months. This is why it’s important to have a look around and establish exactly how much you need to borrow and for how long before you make an application. It’s also a really good idea to use an online payday loan comparison site.

Online Loan Comparison Sites

Price comparison websites will compare direct money lenders to give you an overview of how much a cash loan would cost from each credit company. You should also compare things like their default fees and online reviews. Just in case something was to go wrong, and you were unable to make your repayments, knowing you’ve borrowed with a friendly and supportive direct lender can be a nice comfort in times of financial discomfort.

Clear and Fair

Using Clear and Fair Loan Comparison site makes the process of choosing a bad credit loan even easier. We not only rank the bad credit loan creditors in order from cheapest to most expensive for your loan requirements, but we don’t accept sponsored rankings so the online direct lender you see at the top of your search results is always the cheapest.

Being a Responsible Borrower

While we understand that sometimes you might need fast access to money, you have to take all of your financial responsibilities into consideration. Although lenders have to make responsible lending decisions in regard to your application, you also need to be a responsible borrower and make sure you are only borrowing if you really need to, and that you only borrow the amount that you need to meet your short term financial issue.

Failing to make your repayments on time or in full can cause serious money problems and make credit harder to obtain in the future. You need to make sure you are considering your finances at the time of repayment and take into account any one-time payments that are due or any potential reasons you may have a reduced income that month.

Even if you do have a bad credit history, there is no reason that you can’t improve it. And repaying your loan on time can help, so make sure you don’t worsen your credit history unnecessarily.