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– 3-12 month repayment –
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Apply Today to Borrow up to £25,000
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– 3-36 month repayment –
– Rates from 4.7% to 278% –
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Representative example: £5,000 over 5 years at 16.9% APR representative. Rate of interest 16.9% fixed. Monthly repayment £120.85. Total charge for credit £2,251.00. Total amount repayable £7,251.00
Representative Example: Borrow £700 @ 12 months at £111.27 per month, total repayment of £1335.24, Interest £635.24, Interest rate 140% p.a.
Representative 277.5% APR (Variable). APR rates range from 45.3% APR. to 1575% Max APR. Your APR rate will be based on your circumstances.
Small Loans With Short-Term Repayment
If you’re looking for urgent money, one of the best alternatives you have is small loans. Unlike the regular loans from banks and traditional lending establishments, these ones are usually offered by private lenders. It provides a smaller amount that is settled within two weeks or a month or less. It may not be enough to cover major expenses, but it is beneficial if you need to settle unexpected bills, falling short on cash, or you’re having an emergency. The best part is – small loans provider does not apply strict criteria and complicated terms and conditions.
The amount you can acquire ranges from £100 to £1000 and once your loan application is granted, it will be transferred directly to your bank account. The entire loan application is hassle-free; in fact, it can be obtained without leaving your post. Small loans, which are offered by private lenders, can be acquired over the Internet but despite its convenience, you must be careful with the loan. As a bad credit loan, it carries a high-interest rate that could trap borrowers in the vicious cycle of debt.
Why Small Loans Come With High-Interest Rates
One of the popular drawbacks of small loans is the expensive interest. Private lenders tend to apply exorbitant rates than the ones offered by banks and credit unions. Therefore, if you’re looking for an alternative choice, this loan is should not be an option.
One of the reasons why it is costly is because of the minimal requirements it demands. Often, it skips conducting a credit check and to compensate the risks from its borrowers, the lender charges a very high-interest rate. Loan seekers who are having difficulties repaying the loan ask the lender for an extension. “Roll over”, as they call it, is allowed providing that the debtor agrees to pay for additional charges on top of the already expensive debt.
On the bright side, bad credit borrowers now have the chance to acquire the financial assistance they need during emergencies. Small loans provider do not use the credit score to come up with a decision, therefore, they have the chance to get approved despite the poor credit remark. But that doesn’t mean that they will totally ignore the credit report; some lenders may still use it to determine the maximum amount they can borrow and the interest rate that they will apply. The higher the credit remark, the lower the interest rate; the lower the credit remark, the more expensive the interest rate it carries.
If you think small loans are just too expensive, you have other options to choose from and one alternative is the credit union.
The financial establishment is cheaper since it operated by its own members, rather than private owners. It is also recommended if you want a more flexible repayment term and lenient requirements. Another inexpensive choice is to borrow from a family or a friend. Usually, it doesn’t come with interest rate although both of you can agree to come up with fees and due dates.
Meanwhile, if you want to stick with small loans, you can start by filling out an online platform with personal and financial details, like your name, email address, bank account, and employment information. It takes 5 minutes or less to complete the form and normally, no other paperwork is required. In some cases, however, there are lenders who ask for a soft copy of your payslips, certificate of employment, proof of billing, and so on; you can send it via email or fax it to the company.
Once your application is approved, your money will be transferred to the bank account provided. Thus, a working bank account is important. But other than receiving the fund, you also need it to get approved. The lender will assess your bank statement to find out your creditworthiness. Having a proof of income is also imperative because this is one way to verify capability in repaying the loan.
Requirements When Taking Small Loans
Small loans are easy to acquire but that doesn’t mean that no one will be rejected. Therefore, to avoid a declined loan application, borrowers should take note of these basic prerequisites:
- The borrower must be at least 18 years old and above.
- The borrower must be a UK resident or citizen.
- The borrower must have a working bank account.
- The borrower must show a proof of income in the form of salary, benefits, alimony, or pension.
Do You Need A Guarantor If You Have A Bad Credit Rating?
To increase their chance of getting approved, most loan seekers who struggle with a bad credit score may turn to guarantors; however, small loans do not really require a second person to guarantee the loan. The amount offered is small and easy to settle, thus there’s no need to involve anyone except the borrower and the lender.
Below are some tips you should consider when looking for small loans:
- Shop And Compare
Many people who look for online small loans feel overwhelmed because of the vast choices they have. But no matter how desperate or in a hurry you are, be sure to shop and compare at least five lenders. Check out their rates, terms and conditions, and repayment option to know which one will suit your needs.
- Communicate With The Lender
Most websites contain all the necessary things you need to know about the lender, however, it’s still best if you can clear your concerns with them directly. There’s no need to visit its physical site if your time is limited as you can always drop them a call. Create a list of the things you need to clarify first and ask them to your lender. Reputable companies are more than willing to assist you with your concerns.
- Check Reviews
Doing a background check is important and so as taking time to read feedback. Find out what their former customers have to say about them to have a glimpse of their service. Do they offer vague terms and conditions? Are there any hidden charges? Do they offer good customer service? These are just some of the things you need to know before you consider a lender.
5 most recent personal loan reviews
Great team at credit star. Helped me out a few times with no bother at all! The new expense calculator is a great way to speed up the application too! A quick phone call to confirm some bank details and the money was in my guarantors bank in hours! Brilliant service, thanks you stars!
Review posted by Ian Yeates, Pocklington
Ease Of Use
Value For Money
Loans Hub are seriously good at what they do. I knew I would struggle to get a loan as have poor credit history although I work full time. My sister was happy to be my guarantor as she knows I would never leave her to pick up my debt.. that's the key to loans hub loans and why they work so well. From start to finish the process was professional and easy. I never leave feedback for anything however I felt so strongly that I should share my positive experience.... just go for it, you won't regret it!!
Review posted by Emma Maguire, Darlington
Ease Of Use
Value For Money
Money made simple - M&S complete all the necessary background checks, even though it may seem a lot, it is not. Its made simple by an efficient team of advisers. Money is drawn down by the underwriting team within an acceptable time frame of 2 working days. I spoke with a guy called Michael over the telephone and he was able to discuss my top up loan and within a matter of minutes the loan application was completed. Great service all round.
Review posted by Connor Brewer, Cheltenham
Ease Of Use
Value For Money