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Unsecured loans are the loans that are sanctioned without the requirement for collateral. Collateral is when an asset is pledged to get a loan. They are based on a borrower’s creditworthiness completely. Borrowers qualify for unsecured personal loans bad credit solely based on their income and credit history. The lender does not have the rights to take any physical assets if the borrower stops making payment on an unsecured loan.

An unsecured loan, also known as a personal loan or a signature loan, is a loan provided to a person by the lenders without collateral. The lenders do a complete background check for your credit score and credit history before lending. A higher credit score tends to be the main criterion that bears your creditworthiness proof. While it can be hard to get an unsecured loan with poor credit, it’s possible with high-interest rates.

An unsecured loan with bad credit generally has a shorter term of 2-5 years and are small in amounts. They can be taken for anything like college tuition, debt consolidation, for business, for a trip or medical bills.

To get an unsecured loan bad credit, you don’t have to deposit anything as collateral. Rather, the lender will review your loan application depending on your repaying ability. Lenders look at different factors like your credit score and your income to find out whether you are likely to repay or not. Moreover, you can get the best deals for the lenders if you’ve a co-signer.

Who Is An Unsecured Loan Best For?

People with bad credit who are in need of getting money quickly can apply for unsecured personal loans. An unsecured loan lets you borrow money for nearly any purpose. Unsecured loans are unique as they do not require collateral and are guaranteed by the borrower’s pledge to repay only.

Benefits of Unsecured Loans

An unsecured loan is available to borrowers as the repayment is completely based on your income, credit rating, and credit score, instead of any property or asset. This loan is generally offered over a very flexible time period, generally at fixed rates, letting you carefully plan your repayments and make sure that you have the capacity to borrow. Moreover, if you meet the repayment in full and on time, the unsecured loans can increase your credit score – enhancing your possibilities of receiving better credits in the future.

Can I Apply for Unsecured Loans While Having Bad Credit?

Are you worried due to no credit or bad credit? Payday Loans Now is here to help. Payday Loans Now has specialized in assisting people who have bad credit to get loans for their needs. Whether you are looking to improve your home, consolidate debt or create a good credit rating, we can help you by offering unsecured loans. Getting accepted for loans can be quite difficult if you have got a bad credit history, but don’t worry.

There is some light at the tunnel’s end and lenders like us specialize mainly in finding and offering an unsecured loan for individuals like you. Regardless of the financial issues you experience while you materialize your plans, Payday Loans Now has ready-to-deliver and affordable unsecured loans without a credit check and guarantor. At Payday Loans Now, we don’t need a high credit score for our application procedure. We want to change the financial status of those having bad credit with our loans. Once your application is approved, you can rest assured to get an unsecured personal loan which will contribute to enhancing your credit score.

Our unsecured personal loans bad credit instant decision keeps you free and relaxed from worries of a credit check and hidden charges, delivering an exceptional experience of customized finance at the end. Apply today and get a loan in just 5 minutes.

Unsecured Personal Loans

  • Unsecured loans aren’t secured against your assets or property
  • Unsecured loans include almost all kinds of personal loans, credit cards, and student loans
  • Unsecured loans are more difficult to obtain
  • Getting unsecured loans is dependent on your creditworthiness
  • Unsecured loans interest rates are generally higher than of secured loans and also needs higher credit

Secured Personal Loans

  • A secured loan needs you to offer an asset to the lender which will be utilized as a collateral to get the loan. The collateral can be seized by the lender if you default on your loan.
  • Secured loans generally have a low rate of interest compared to unsecured loans since secured loans are less risky.
  • A secured loan is simple to get as it’s less risky for the lender to dispense it.
  • A secured loan usually has a longer repayment period.
  • Types of secured loans are mortgages, HELOC, and car loans

Why opt for Unsecured Loans for poor Credit

People may need to borrow money in myriads of situations. Nowadays, unsecured personal loans are preferred by a majority of people when they need to borrow money. However, it is prudent that you weigh the pros and cons of the lending method before choosing it.

Listed below are some situations in which you may opt for unsecured personal loans:

  1. Debt consolidation – If you have been using a credit card, you may be aware that a majority of scheduled repayments comprise of the steep interest charges. A personal loan lets you pay fixed monthly amounts over a preset period of time. That way you know the exact amount that you will need to shell out every month. So, an unsecured personal loan can serve as the perfect means to streamline your finances and consolidate outstanding debts.
  2. Credit Rating boost – Everyone in the UK undergoes credit checking. This is applicable even if you have not taken a loan or used a credit card at all! Your credit file contains all financial and personal data. These include borrowing behavior, credit score and default history. Lenders check this information to decide your eligibility for loans. When you pay back a loan in time, it enhances your credit score.

Future of your credit

At Payday Loans Now UK, we are not as focused on your credit history as we are about its future! We help people connect with lenders, including those having poor credit history. We strive to find a suitable lender matching your needs and ensure you do not lose out. We also ensure you find a loan offer that is on par with your repayment capability. You have to be in a full time job and above 18 years to be eligible. The loan sanctioning does not take a lot of time either.

Unsecured Loan Bad Credit FAQ

Frequently Asked Questions

We specialize in locating loan options for diverse types of customers, including those with poor credit rating. So, your credit score will not a hurdle for getting an unsecured loan, when you avail our services. We have alliance with lending entities and they evaluate customers as per their individual circumstances. They do not focus solely on poor credit history! To assess your eligibility for the loan, factors like present income and existing assets are also taken into account.

Sometimes, an unsecured loan can be the best finance option for individuals in need of cash.

  • Like many individuals you may approach various banks for loans under certain situations. However, in many situations the banks won’t lend money if you have inadequate credit score. In such times, a lender offering an unsecured loan can salvage your situation. It can be helpful for addressing medical emergencies. You may even opt for such a loan for house repair post a natural disaster.
  • Since these loans are not secured against assets like property, the amount borrowed tends to be on lower side. So, you are able to repay it within a short time span. The amount can vary from £500 to £25,000. It is ideal for amalgamating your existing debts into one single payment. So, this is actually beneficial for the borrower.