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What Can You Do If You Have Bad Credit and Need a Loan in an Emergency?

Financial emergencies can happen at anytime, and no matter how we try to prepare for them, such as saving, there can come times when we either may not have enough saved for that particular emergency, or we may not have any savings at all.

Financial emergencies come in many forms:

* Car repairs

* Moving house expenses

* Boiler repairs or replacement

* Emergency travel to visit a friend or family member

* Loss of a job

In any of these instances, you may need to seek out a short-term financial remedy to get you over this transient period, so a loan is a logical answer. However, not everyone has good credit, or a high enough credit score to qualify for a loan.

All is not lost, there are options and alternatives for those with bad credit, and are in need of a loan for a financial emergency.

Family and Friends

If you need to borrow money quickly in an emergency, one alternative is to turn to friends and/or family for a loan.

There are no credit checks or credit scoring used in lending family and friends money, and in most instances if they have the cash readily available, the loan can be arranged rather quickly.

So bad credit is not an issue.

Sell Unwanted Stuff

Another way to raise cash quickly is to sell off any of your old or unwanted stuff. You may be surprised what is hiding and lurking in your garage or loft. Items you may not have thought about, let alone seen in years, yet have a value to someone.

You can list these items on eBay, but there are free web sites available to sell your unwanted items. This is a way to make some quick cash in an emergency.

Use an Asset to Borrow Against

Pledging an asset for a loan, such as a car, or even your property if you have equity, is an option for someone with bad credit who is seeking a loan in an emergency.

Secured loans are easier to qualify for, and having a low credit score may not be as much of an issue.

However, while secure loans are an option for a financial emergency, you may want them to be a last resort or last option.

By pledging an asset for a loan, that asset is now securing the loan, which means if for any reason you cannot repay the loan, your asset, be it your car or property, could be repossessed.

Bad Credit Loans

There are short-term and long-term loans for those seeking a loan and have bad credit.

Payday loans are a consideration if you need a small loan and can repay it within 30 days. While these loans are quick to have, and the only real requirements are that you have a job and a bank account, and can show affordability, they come with high interest rates, and again, need to be repaid on your next payday.

Guarantor loans are another form of bad credit loans, however, they offer more flexibility than a payday loan.

Guarantor loans can be for high amounts than a payday loan, carry lower interest rates, and also offer longer terms to repay the loan, which makes the loan more affordable.

The only requirements are that the borrower have a guarantor, and can show affordability.

Financial emergencies, they are going to occur, and even with bad or no credit, there are options for an emergency loan.

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<strong>What is Our Criteria For Applying?</strong> 
Every lender on our website has their own specific criteria by the basics are mentioned below and you must have a guarantor to be eligible. Simply select the lender of your choice and you will be taken directly to their website where you can apply. You will be required to submit your details including:<li style=”text-align: center;” data-mce-style=”text-align: center;”>Name (must be over 18 as the borrow, 21 or 25 as the guarantor)</li><br /><li style=”text-align: center;” data-mce-style=”text-align: center;”>Residence (your chances will improve if your guarantor is a homeowner)</li><br /><li style=”text-align: center;” data-mce-style=”text-align: center;”>Employment status (must be employed or on a pension)</li><br /><li style=”text-align: center;” data-mce-style=”text-align: center;”>Income (earning at least £600 per month and able to make repayments)</li><br /><li style=”text-align: center;” data-mce-style=”text-align: center;”>Monthly expenses (not have too many loans open or in major debt)</li>
 
You will then be asked to include the details of your guarantor and as mentioned above, this is usually someone who you know and trust and wants to help you with your personal finances. Ideally, a guarantor with good credit will maximise your chances of being approved based on the idea of ‘if someone with good credit trusts you, well we can too.'<strong>How Much Can I Borrow From Guarantor Loans?</strong>Guarantor Loans gives applicants the chance to borrow £500 to £15,000 depending on the lender. Some lenders we feature like Buddy Loans only have a maximum loan value of £7,500 and TFS Loans is the only lender that stretches up to £15,000.Factors that can influence the amount you can borrow revolve around having a good guarantor. One that is a homeowner, with solid employment, income and good credit rating will maximise your chances of borrowing the largest drawdown possible.The lenders featured on Guarantor Loans see a homeowner as someone who has already gone through the rigorous process of credit checking and affordability and if they can afford a house, they should be able to act as a guarantor for you.By comparison, having a guarantor that is not a homeowner offers slightly less security and means that amount you can borrow is slightly less too.Higher amounts may be available to those who already have a better than average credit rating, are homeowners themselves and a repeat customer with the lender who has already paid their loan on time. To apply directly with your lender of choice see <a href=”https://www.paydaybadcredit.co.uk/direct-lender/” data-mce-href=”https://www.paydaybadcredit.co.uk/direct-lender/”>direct lenders</a>.<strong>What Does The Guarantor Have To Do?</strong>Upon completing an application, the lender will typically send you a <a href=”https://www.handbook.fca.org.uk/handbook/CONC/4/2.html” data-mce-href=”https://www.handbook.fca.org.uk/handbook/CONC/4/2.html”>pre-contract loan agreement</a> and SECCI (Standard European Consumer Credit Information form) which will highlight the terms of your loan. You and your guarantor will be required to review the terms of the loan, including the loan drawdown, fees, repayment dates and responsibilities – and this can be signed via an online verification process using your email and mobile phone.The lender will usually carry out an individual phone call with you and your guarantor to ensure that you both understand the responsibilities and what is required of you – notably that if you cannot make repayment, your guarantor will be required to pay on your behalf. Further to some additional credit and affordability checks, funds can typically be transferred within 24 to 48 hours (or sometimes on the same day).<strong>Are Guarantor Loans Available For Bad Credit Customers?</strong>Yes, even if you have a history of adverse credit, <a href=”https://www.gov.uk/county-court-judgments-ccj-for-debt” data-mce-href=”https://www.gov.uk/county-court-judgments-ccj-for-debt”>CCJs</a>, bankruptcy or IVAs several years ago, you can still be eligible. The idea is that you are using your guarantor and their financial history to ‘back you up’ and give your loan extra security. However, it is noted that your guarantor should have a good credit score and consent to co-signing your loan agreement.<strong>How Soon Can I Receive Funds?</strong>Guarantor Loans works with lenders that can facilitate funds within 24 to 48 hours of approval, or sometimes on the same day.When your funds are successfully transferred, most lenders working with Guarantor Loans will send the full amount to the guarantor’s debit account first. This is a standard security measure carried out by lenders to ensure that the funds are going to the right person and confirms the involvement of the guarantor. The guarantor usually has a ‘two week cooling off period’ where they can decide to pass on the money to the main borrower or they can change their mind and return the funds with no extra charges.