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Short Term Loans
£50 - £995
Rates from 278% to 1576%
3-12 month repayment
£1k - £25k
Rates from 4.7% to 287%
3-36 month repayment
Representative Example: Borrow £700 and pay £111.27 per month for 12 months at an interest rate of 140% per annum (fixed).
The total charge for credit is £635.24 The total amount repayable is £1335.24. Representative 277.5% APR (variable). Your APR rate will be based on your circumstances.
† Subject to lender's requirements and approval. Not all loan amounts are eligible for 20 minute payouts. Your bank may increase the time you receive the money considerably.
Consolidation Loans for bad credit in the UK
- Combining debts into one manageable repayment amount can save you a lot of money in the long run.
- With only one debt to settle it’s easier to keep on top of your finances and what has to be paid each month.
- Each consolidated loan is tailored to your own circumstances so there are a variety of options available from UK direct lenders.
Through debt consolidation loans, you can lower your monthly costs and sort out your debt into one simple loan. When you are swamped with numerous debts, there are several options available in the UK today that can help you climb out of the hole. What’s more, you can even obtain one even if you have bad credit. The interest rate you will enjoy with the pound loans can be lower than your existing debts, which means your monthly expenses will be reduced. But the potential savings that you can enjoy is just one thing as you will also be able to organize your finances and debt when you decide to take out a debt consolidation loan.
Consolidation loans with a guarantor
If you are worried that your bad credit rating will get in the way in applying for a debt consolidation loan, providing a guarantor is an option that you can consider. A guarantor is someone who is willing to enter into a loan deal with you as a co-signer. Here are some features of the loan that will help you to consolidate debt and enjoy several unique advantages as well.
- By using guarantor loans to consolidate debt and making the proper repayments, you may be able to rebuild your credit score by demonstrating you have the financial ability and discipline to repay loans and other bills on time.
- The loans can be used for any legal purpose which includes consolidating debts. This means that you can use the proceeds of your loan to pay off your existing debts in their entirety and lower your number of repayments down to just one in every month. This helps make your debt more manageable and easier to pay off at the same time.
- The financial products allows you to consolidate your debts into a single loan and choose a repayment term that is ideal to your needs and present circumstances. You can opt with a short term loan of 1 year or extend this up to 5 years.
Who is eligible?
Almost anyone in the UK can apply for a guarantor loan as long as he/she is a legal resident of the country and has an income that can afford the repayments. If you meet these two basic qualifications, all you need next is to find someone with good credit rating to act as your guarantor and co-sign the credit agreement with you. Basically, they will be vouching for your ability to make the repayments and guarantee that the loan will be paid back.
Consolidation loans with a guarantor: things to consider
Consolidating all your present debs and credit obligations into a single monthly repayments with the help of a guarantor may sound very appealing. It can also be a great decision to make, especially if you have several creditors to deal with. With that being said, there are also a number of things that you need to consider such as:
- Just like with any type of loan, it is vital that you ensure you can genuinely afford any repayments based on the agreed terms and conditions. Carefully come up with an estimate on whether the proposed loan deal of one single repayment will allow you to comfortably cover essential living expenses such as food and clothing. You should also put an important priority on your rent, bills, mortgage and council tax every month.
- It’s important to consider that you may be paying back a debt consolidation loan over a longer duration of time. With that being said, make sure that you know full well when the repayments end and that you are content with its length.
- The interest rate you will be paying for a guarantor loan will be higher than a secured loan and personal loan. Normally however, if your guarantor is a homeowner, you can enjoy lower interest rates and this is something that you might want to look into.
- If you opt with a debt consolidation loan, never fall into the temptation of taking out new debt once again while you’re still paying off your current loan.
Debt consolidation loans for bad credit
If you are overwhelmed with debt just like with numerous other people in the UK, you may be searching for a means to pay off your bills and get back on track financially. Debt consolidation loans for bad credit are one of the solutions you can consider to get out of debt, but you may be wondering what your options are if you have been snubbed by your bank or credit union.
To avoid going down the wrong path, take some time to realize that there are viable choices for you, regardless of your credit rating and financial situation. Also, the more you understand what your options are, the better your chances of making the right decision and getting on the road to financial freedom.
Banks and credit unions may not be the ideal avenues
For many people in the UK who have bad credit profiles, the first places that they would go to for a debt consolidation loan would be their bank or credit union. While it certainly makes sense to apply for a loan with a lending company that you are already familiar with, you may be frustrated if your application becomes rejected. Here are things that you need to consider with banks and credit unions:
- Both banks and credit unions provide an assortment of traditional loans and other financial products but they normally won’t cater debt consolidation loan applications if you have bad credit.
- Both banks and credit unions typically utilize a risked-based pricing model, which means the “riskier” you are in terms of your ability to repay the loan as reflected by your credit status, the higher the interest they will charge you. Thus, even if you get approved for a debt consolidation loan, you could still end up paying more in interest and fees than someone with better credit.
With that being said, whether you are approved for a loan deal with hefty rates or you get rejected due to your inadequate credit score, bear in mind that there are numerous other options for debt consolidation loans if you have bad credit. Just keep doing your research and find those lenders that provide the best financial products that are ideal to your needs and present circumstances.
Online loans from alternative lenders
While banks, credit unions, and other traditional lending institutions may turn you down for a debt consolidation loan if you have bad credit, there are those that don’t. In fact, you can find plenty of alternative lenders online who specialise in providing debt consolidation loans for people with bad credit. They can even provide you with competitive rates and payment terms that can be ideal to your needs and present financial situation. Some of the bad credit loans that you can turn to in paying off those exiting debts include:
- Debt consolidation personal loans for bad credit
- Secured debt consolidation loans
- Logbook loans
Debt consolidation loans with No Guarantor
A no guarantor debt consolidation loan won’t require a second party to co-sign or “guarantee” the repayment of the loan. Normally, when a person believes they have poor credit or is in a difficult financial standing, having someone with a higher credit score or better resources to co-sign the loan will improve the chances of getting approved. And because the guarantor basically promises to take over the loan’s repayments if you miss out or default from your loan completely, this gives lenders the confidence they need to accept your application.
This means that there is no need for you to find someone who is willing to back your loan deal, significantly simplifying the entire process. On the other hand though, it might be more challenging for you to secure a loan with larger amounts, lower interest rates, and flexible payment terms if you have a low credit score.
How the absence of a guarantor will affect your loan terms
Every time a lender agrees to lend someone with money, they are always carrying a real risk that the person won’t pay back the money that they owe them. Guarantors provide security to the loan deal, lowering the risk involved in the lender making it easier for them to grant the lowest interest rates possible.
When you apply for a no guarantor debt consolidation loan with bad credit, you would appear riskier than if you had a co-signer with better credit who practically ensures that the loan will be paid back. For this reason, interest rates for no guarantor loans tend to be higher. This means that you could end up paying more than you might have for a guarantor loan.
Should I Take Out a No Guarantor Loan to consolidate debt?
Taking out a debt consolidation loan, whether it’s something that has a guarantor or not, is a personal decision but there are important points that you need to consider before making an application to a certain lender.
- You should carefully evaluate what your purpose is for taking out extra funding. If the money is not for paying off debts and simply for unnecessary expenditure, then you might want to reconsider getting a loan altogether. Instead, you could save to satisfy your desires or find other sources of financing like family and friends.
- If you are convinced that a no guarantor loan is the ideal option for consolidating your debts, you should carefully consider how much you will borrow and for how long you will need to pay it back. And before you sign your loan contract, make sure that you check what the repayment schedule is to get a sense of how much you’ll need to pay for every month.
- It would be best that you set aside a budget from your monthly earnings and outgoings to determine how much you can afford to repay every month based on your present financial situation. Never borrow more than what you can genuinely afford to pay back.
What Does Having No Guarantor Mean?
The role of the guarantor in a guarantor loan is to give lenders that feeling of security and assurance that the money they lend will be paid back. Simply put, it’s all about risk. Having a guarantor in your loan agreement means that the lender will not have to charge you as much interest as they might have to offset the risk involved in your bad credit rating.
Thus, the first thing that you should expect if you take out a no guarantor loan to consolidate debts if you have bad credit is a higher APR%. While the APR% for a guarantor loan tends to hover somewhere in the 40 – 50%, the rate for an equivalent loan without a guarantor could fall somewhere in 70% or more.
Online Debt Consolidation Loans in the UK and debt consolidation loans with Instant Approval
Looking for an instant approval debt consolidation loan that will cater your need for funding even if you have bad credit? Searching for a great means to get out of bad debts? If you are, then you might be thrilled to know that that are plenty of online banks and financial companies in the UK that are ready to grant you the instant funding that you need despite you’re not so stellar credit rating. All you need it to do is to put some time and effort in finding them through the internet. Here’s how they work:
- Online financing companies in the UK will receive your request or application online for a bad credit debt consolidation loan and they will instantly forward the best available deals to you.
- Normally, the loan is processed in an online application wherein you will need to fill out some basic information such as the amount that you intend to take out and the repayment period.
- After you have submitted the necessary information, you will get a debt consolidation loan offer from your lender what will allow you to enjoy a consolidated single monthly bill, to repay back at easy installments.
- Your debt consolidation loan will not exceed more than 5 years and if you manage to stick to your repayments in the agreed terms and conditions, you get out of debts sooner and improve your credit score as well.
- Once your application becomes approved and you have signed the loan contract, the money that you requested for can be deposited into your account within 24 hours or 48 hours.
An instant debt consolidation loan can also be used for other purposes on top of paying off existing debts such as the purchase of a brand new car, financing of a home improvement project or education. The lenders providing the unique financial products are adept in providing a number of financing options and solutions to borrowers. And if you are suffering from poor credit history, you will find bad credit debt consolidation loan deals at attractive terms with the right lender online.
Debt Consolidation Loans from a direct lender
With a direct debt consolidation loan lender, you will be working with a dedicated financing company that is ready to help different borrowers in the UK get the extra funding they need. You can also expect your transaction to be as transparent as possible, beginning from the application up until your repayments. When you complete the simple online application offered by the lender, you will see exactly what amounts you can qualify for. Any and all detail regarding your loan including the amount the your borrow and its duration period will be presented to you upfront before you sign your contract.
Direct Debt Consolidation Lenders
Direct lenders online operate differently from banks and credit unions in a way that they focus more on offering debt consolidation loans for people with bad credit, as well as those with average or better credit profiles. What you can expect from lenders who specialise in providing debt consolidation loans to borrowers with unique circumstances include:
- If you take out a debt consolidation loan from a direct lender online, you are entering into an agreement that will allow you to pay off your existing debts now rather than sooner.
- You will only be managing one loan – which means just a single monthly payment due to your direct lender, which you’ll pay back over a period of time.
- The debt consolidation loans they provide generally use a risk-based pricing model similar to banks and credit unions, so the interest rate you will be covering will not only be based on your credit rating but on your ability to pay back the loan as well.
A reputable direct lender will also provide a number of different debt consolidation loan options for borrowers with bad credit profiles. These lenders know that a one-size-fits-all approach will not take into account you unique financial situation. If you decide to partner with a direct debt consolidation lender, ensure that the company offers you numerous options, and that you know full well how each option works, what the repayments are, the interest rates and fees attached in your loan deal, and how quickly you can pay off the loan.
Consolidation Loan FAQ’s
What is a Consolidated Loan?
This is the process of securing a loan to cover for one or more debts that you are yet to fully repay-this could be small loans you secured previously or credit card balances. A consolidated loan is an affordable way to regain control of your finances.
Consolidated loans have a longer repayment time frame, this greatly reduces the loan amount to be repaid by the customer. Also, they are available at lower interest rates when compared to the smaller loans.
How do Consolidation loans work?
Debt consolidation is an attempt to combine debt from different lenders into one, then try to secure a single loan to pay them all off, hopefully at a reduced interest rate and monthly repayment plan. This system of loan repayment is usually adopted by people or customers who are trying to keep up with multiple credit card payments and other unsecured loans.
Is it a good idea to secure a consolidated loan?
Whether a consolidation debt is good for you depends on your current financial condition and the sort of consolidation debt you are considering. With a consolidation debt, you could significantly reduce your monthly repayment amount and get the much-needed relief. But a longer payment plan could mean that you’d end up paying more in terms of interest.
However, securing a consolidation loan is one of the few good ways to get out of debt and regain some sort of financial control.
Do consolidation loans affect your credit score?
If you are having a hard time trying to manage debts such as high-interest credit card debts, students loans, and medical debts, securing a consolidation loan could significantly boost your credit rating-if used the right way. However, there are situations where a consolidation loan will do your credit ratings more harm than good.
How long will debt consolidation remain on credit report?
The fact that you have settled a debt instead of keeping up with the repayment plan will remain on your credit report for as long as the individual accounts are reported. This usually runs for as long as seven years.
Do banks run debt consolidation loans?
You can take an unsecured personal loan from an online lender, credit union or local bank to cover for credit card and other kinds of debts. The loan will either offer you a lower interest on your debt or help you clear your debts faster.
How do I get a consolidation loan?
To get a consolidation loan you need to apply. This is the first step and it is also called the pre-approval stage. The next step is to set your loan terms-this will determine your loan amount and how long the repayment plan will be. Finalise your application for the loan, and await approval.
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It doesn’t matter how much you are looking for or what your credit history is like, we will be able to find you the best rates possible.
This type of loan is designed specifically for those that have an extremely bad credit score and are very likely to be refused by any normal lender due to their high risk. A Guaranteed High Risk Loan means that anyone that has been refused multiple times in the past or those that have been blacklisted will still have the chance to get the money they need.
An Instant Cash Loan is for those that are in a hurry to get the finance now. By using this sort of loan you will find that you get the funds in no time at all. Once approved you will get the cash straight into your account within 15 minutes. Fast Loans is one of the fastest ways to gain access to money on the loan market. Even those that have been blacklisted will be able to apply.