The Very Best Loans with Loantra
Apply Today to Borrow up to £995
*Rates from 278% to 1576%
*3-12 month repayment
Apply Today to Borrow up to £25,000
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*Rates from 4.7% to 278%
*3-36 month repayment
What Loantra can do for You
Direct Lenders for Bad Credit Loans
Going through direct lenders for bad credit loans could be more beneficial for you and possibly get you a better deal on your bad credit loan. Not only is this way more personal, but you could also cut out the middle man and not have to pay inflated fees which go to the higher power behind your loan. We all go through a financial rough patch at one point or another in our lives, and sometimes, this can result in us getting a bad credit score. While the banks won’t want to do business with someone who has a bad credit score, there are lenders who specialize in bad credit loans.
What Are Direct Lenders for Bad Credit Loans?
Direct lenders for bad credit loans are lenders who issue loans to people with bad credit. Unlike the banks who will base your loan application predominately on your credit score, a bad credit loan lender instead bases your application on your income level. This means that your application is based on your ability to make the repayments and how much you can afford to repay at a time. You can even negotiate different repayment terms with your lender, and some will let you pay on a monthly basis too.
The Four Benefits of Online Loans and the Four Things you need to avoid
Falling in long queues just to take a loan from a physical bank or lending institution is now a thing of the past. Before, you had to complete your loan application before 4:00 pm or you will have to go back the next day to continue it. Not only was this process quite hectic, but it was also time-consuming as well.
With the arrival of online loans, everything became different. People where now able to secure extra funding anywhere and anytime they wanted to through their smartphones and computers.
In the UK nowadays, online loans have become the standard forms of financing, with numerous lenders ready to cater online applications to numerous borrowers who are qualified. But while there are certainly numerous benefits that you can gain from the loans, there are also some things that you need to avoid and below we will discuss all of them.
The Benefits of Online Loans
So how are online loans unique from traditional bank loans that have been on the market for decades? The new kind of loans are designed to make things quicker and more convenient in the part of the borrower. Overall, here are the benefits of online loans:
Fast Approval – Once you apply for an online loan, you will know immediately if your request for funding has been granted or not. And if you are approved, you will know exactly what the amount is and how you are going to pay it back. This is a far contrast to traditional loans that will require you to complete piles of paperwork only to receive a response after several days. Sometimes, you will even have to make a follow up call or visit the bank just to hear an update on your application.
More affordable interest rates – When you scour the net for online loans from a variety of lenders, you will realize that every offer they make is extremely competitive. In fact, you won’t find more affordable interest rates and minimal fees (sometimes even zero fees) than those offered by online lenders. This is because online loans are transacted through websites, unlike traditional loans that are completed in physical branches. If you compare the cost of operating a website and a brick-and-mortar branch, then you will know instantly why online loans are cheaper.
Easier Access – Banks and other traditional lenders are quite picky when it comes to handing out their loan products. If you don’t possess a stellar credit rating, then it would be extremely difficult to qualify for their financial products. Now, this would be a problem if you are someone who is still establishing a personal credit history or have damaged it due to past financial hardships. With online loans, however, you can still get approved even if your credit rating is not that good. This makes the financial products a great funding alternative for people with poor or non-existent credit histories.
Unsecured types of funding – Online loans are mostly unsecured which means you don’t need to attach a high-value asset to your home or property in your credit agreement. With this kind of deal, you won’t risk losing anything in the event that it becomes hard to keep up with your repayments. However, it’s still important to note that your credit rating will be significantly blemished if you miss out or default from your repayments that’s why it would always be best to keep up with your payment responsibilities even if it’s an unsecured loan.
How to obtain an online loan in the UK
Obtaining a loan is the same as you would with any type of loan albeit just a lot easier and quicker. You are required to provide vital information like employment details and your residential location. There are also online loans that will require you to submit proof of income such as payslips and the like.
So you can secure extra funding from an online lender, simply complete the online application form that is provided in its website. To accomplish this vital step, it should only take about 15 minutes of your time and attention. If your application becomes approved, you can expect the money to be deposited into your bank account in a couple of days and sometimes even in the same day depending on the loan, how your application went, and the lender providing it as well.
Things to avoid
Because of the kind of ease and speed that they provide, online loans have become the most widely used credit options in the UK. This kind of popularity, however, has inevitably attracted a lot of dubious parties whose sole purpose is to exploit borrowers and their dire need to obtain extra funding.
With that being said, be sure to keep an eye of these things when you are taking out an online loan over the web:
Online Phishing – The malicious act attaches a certain program in your network without you even knowing it. This program will save any and all information that you send to your lender which includes sensitive bank details and the like.
Online Scams – One of the oldest trick used by online frauds, scamming happens when you apply for a bogus loan lender that is set up to suck as much money from applicants. Often, scam sites will request some form of payment from you so your application will be processed. Once you paid the fee, the bogus lender will then vanish into thin air with your money.
Loan Sharks – These are illegally operating lenders that exploit a borrower’s desperate need to take out a loan. Loan sharks do lend money to borrowers but in exchange for insanely high-interest rates and fees. One effective way to avoid a loan shark is by examining a lender’s credentials before you make an application. Be sure that it has an FCA (Financial Conduct Authority) license so you will be dealing with a legit lender.
To ensure that you will only be raking the benefits of online loans and none of its potential dangers, be sure to consider all that has been discussed above before you make an application.
How Could I Ever Need to Get A Bad Credit Loan?
There are many reasons as to how someone can get a bad credit score, and it’s not always under circumstances that they can control. Take a look at this example below with John and how a series of events in his life led to him getting a bad credit score and a loan. John has a bad credit score because 4 years ago his former employer made him redundant. He became unemployed as a result and found the job market incredibly difficult to crack. Because of this, he needed to use his credit card to survive and unfortunately maxed out the limit in a few months. John did thankfully get a job, but his credit card went into arrears, and the debt got sold off to a collection agency for pennies in the dollar. John was getting hounded by this collection agency and refused to pay them because he believed the debt should rightfully be with the bank and not an agency. This doesn’t matter, as the bank is legally allowed to sell your debt and a collection agency can purchase it and seek its payment as the new owner. John never paid the agency, and his credit score kept getting worse as time progressed. He did, however, get a very nice promotion and now earns an above average income. He has a job in the government sector, and it’s a very safe position in addition to some great employee benefits. Unfortunately, John’s wife has had a terrible accident and requires some medical care. He has to front the bill now and pay for her treatment but doesn’t have any savings or get paid for a while. He can’t go back to the bank which sold his debt, so he tries another one and makes a loan application. They refuse him due to his bad credit score and tell him it doesn’t matter who he works for or how much he is making. Outraged at the treatment he has just received from the bank, John seeks out direct lenders for bad credit loans and finds a lender he wants to go through. He makes an application and supplies his identification and proof of income. The lender can see that John has a great job and is more than capable of making the loan repayments, so he approves John that same day and John gets access to much-needed funds.
See How We Compare to Our Competitors
Representative 49.9% APR (variable). Borrowing £4000 over 36 months, repaying £195.16 per month, total repayable £7,025.76. Interest rate 49.9% (variable). Repayment terms available between 1 and 5 years. Maximum APR 99.99%
Loantra is a licensed credit broker and not a lender.
We will never charge you for our service and the lender will not increase the rate to cover our fee to them.
We work with over 40 different lenders to bring you the very best rates from across the UK market.
Representative 305.9% APR. Representative example: £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)
Warning: Late repayment can cause you serious money problems. For help, go to moneyadvice.org.uk.
Do not borrow more than you can pay back as defaulting on payments can lead to serious monetary problems.
Any collateral you have against the amount may be at risk of repossession.
5 most recent personal loan reviews
My personal loan from NatWest was planned in advance because I like to do plenty of research before committing to something as important as a building extension. I wanted to make sure the loan would be possible and that it was at a competitive rate before I started employing architects and builders. I was in regular contact with our local branch’s loan adviser and they finally sorted out a very good loan for me and once that was agreed I got on to the job of planning this extension. We’d already had the go ahead from the local council so it was all systems go once that all important loan was finalised. Sometimes it’s best to deal with your own bank for such an important loan and I am pleased that I entrusted NatWest with my loan.
Review posted by Wayne Crouch, Plymouth
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- Ease Of Use
- Value For Money
In our position your company treats us well. We have the income but unfortunately due to circumstances beyond our control our credit rating is bad. Thank you Uswitch for giving us a chance.
Review posted by Neil Morrison, Perth
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- Ease Of Use
- Value For Money
Suprised at ease of application. Never wanted to use these kind of things but had a very tough month and needed a few pounds before payday. After checking different options I found the small amount to payback manageable and it’s all payed back 2 days after payday. Easy process with quick response.
Review posted by Anthony Bell, Chelmsford
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- Ease Of Use
- Value For Money
All reviews have been sourced from Trust Pilot to ensure authenticity of testimonials.