October 14, 2019 7:25 am Written by

Where Can I Get an Emergency Loan Fast With Bad Credit?

At some point in our lives an emergency may arise that requires and creates a financial need. Something occurs that is going to cost us money, and we may not always have that money saved.

It may be a car repair, boiler replacement, new fridge, cooker, washing machine, roof repair, or even you may need to buy a car for a new job, there can be any number of financial emergencies that can happen, and these emergencies may require getting a loan.

Couple the need for a loan with having weak, poor, no credit or bad credit, only makes the situation seem worse.

Most banks and lenders base the granting of a loan on a few factors, and the two main factors are:

* Credit scores

* Affordability

A person may be able to afford a loan, but if their credit score is not high enough, or meets the lenders requirements, the loan can be rejected. And having a loan rejected at the very moment you need it the most, during a financial emergency, is not good timing.

However, there are loans that can be approved quickly even for someone with bad credit, in addition, there are some preparations one can do before you actually need a loan, to help insure you are approved for the loan.

Since loans are based on affordability and credit scores, you should do two (2) things:

* Get a copy of your credit file and credit score

* Prepare an income and expense sheet listing all your income and all your expenses

This way you know your credit score, and also you can show affordability.

If your credit score is low, you can try to improve your credit score:

* Pay your bills on time

* Don’t apply for unnecessary credit

* Get on the electoral role

* Inquire if your landlord (if you are a tenant) wants to join the Rental Exchange

All these can help in improving your credit score.

What If I Need a Loan Quickly and Have Bad Credit?

There are loans that cater to people with bad credit, and many of them payout quickly, so you do not have to wait days to know if you are approved for the loan.

* Guarantor loans

* Payday loans

* Logbook loans

Each of these types of loans will accept someone with bad credit, as they are based on affordability and a second factor, but that second factor is NOT credit scores.

Logbook loans: Logbook loans are based on affordability and the fact you have a car of value. You pledge the car as security for the loan.

Payday loans: Payday loans are also based on affordability, and the fact you have a job/wages, and a bank account.

Guarantor loans: Guarantor loans are based on affordability and the fact the borrower has a guarantor; someone who will pay the loan payments should the borrower default on the loan.

There are some issues with some of these loans, even though they do not require good credit, they may not suit every borrower.

Logbook loans require you have a car of value. The loan can only be based on the value of the car, usually a percentage of the value of the car.

Payday loans are short-term loans of only 30 days or less. This can make the repayments difficult, and the interest rates high. Payday loans are also for lower amounts, £500 or less.

Guarantor loans off the borrower the ability to borrow £5,000, £7,500, or in some instances higher amounts, and spread the payments over longer term, some are up to 60 months (5 years).

So if you need a loan quickly for an emergency and have bad credit, there are options available to you.

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