Taking Out a Loan With Bad Credit

If you’ve stumbled upon this article, it only means two simple things; first is that you have a bad credit rating, and second is that you need money and fast! But of course, with your current credit rating, how could you ever possibly get out of your sticky financial situation? Banks and other financial institutions rely heavily on a person’s credit score rating for them to grant a loan, so you might be close to impossible in approaching these companies to get quick cash. Loans for people with bad credit are very hard to come by, but it is not entirely impossible to get one. You could get loans for quick cash, but there are lenders who would charge you with a ludicrous amount of interest to pay back. You just have to be careful about where or who to get your loan from, especially if you have bad credit. Lucky for you, TFS Loans grant such loans for people even with a bad credit rating, and they would not stump you on the representative annual percentage rate of interest they would charge.

Your Credit Rating Matters

People who have a bad credit rating either know they have such a rating because of their financial decisions or circumstances they choose to be in, or either they do not know because of certain circumstances they are in. There are a lot of different factors that would comprise of your credit rating. Missing on loan, credit card, debt or mortgage repayments and/or actually being officially declared as bankrupt are the top reasons why you would have a bad credit rating. If you are the type of person who has never had the chance to start or even build up a credit line, then you are also in danger of having a bad credit rating, same goes for people who are self-employed. Your credit rating tells possible lenders of your capacity to make repayments on loans they could potentially provide for you, that is why most people with bad credit ratings have a hard time taking out a loan. You could actually improve your bad credit rating, and an easy way to do that is to take out a loan for people with bad credit from TFS Loans.

TFS Loans’ Bad Credit Loans

Securing a loan with TFS Loans is very easy, and the best part about it is that you would not have to pay high prices of interest that would only potentially make your current financial situation worse. Small value loans from £1,000 to £4,500 only have a representative APR of 69.9% or as low as 48.9% for higher values. For loans amounting to £5,000 and as much as £10,000, you could enjoy a representative APR of only 39.9%. If you plan to get a larger valued loan exceeding £10,000 up to a maximum of £15,000, you would only have a representative APR of 29.9%. It would be very easy to pay off as well because you have a choice of how long you want your loan period to be. So, you can base your loan period duration on how affordable the monthly repayments are and how much you have the capacity to pay it off vs how much you are willing to pay back in total. 

Guarantors and Bad Credit Loans

The reason why TFS Loans can easily approve your application for a loan even if you have bad credit rating is that because they make use of a guarantor loan set-up. When you apply for a loan with them, you are required to apply with a guarantor, ideally someone you know, you can trust, and someone who has a good credit rating. If you want to take out higher valued loans greater than £10,000, your guarantor should also prove that they are a homeowner. Your guarantor’s credit rating will be the basis of your loan application, but you would still be responsible for paying for your monthly repayments until your loan (with interest!) is paid back. Your guarantor would only stand in paying for your monthly repayments should you, for any reason, fail to do so. So, in a way, there is always a guarantee that you would be making your monthly repayments in order for you to easily improve your credit rating. It would then be a private discussion between you and your guarantor on how you would pay off your debt to him or her. That is why it is very important to get someone that you really know and trust to back you up as a guarantor, so that it would be easy to discuss terms should the worst happens.