Bad credit can make it difficult to get a loan, but that doesn’t mean you should give up trying. If you need money and your credit history isn’t the best, there are options available to you in the UK that might be better than what you expected! You just have to know where to look. This guide on small loans with bad credit will help you find the right solution for your financial needs, no matter what challenges you’re facing.
Can I get a loan with a credit score of 500 UK?
The answer is yes; you absolutely can. Online lending has made it easier than ever to obtain a loan even if your credit isn’t perfect. It’s common knowledge that lenders prefer borrowers with good or excellent credit. However, with online lending, there are many options available for those who have less-than-stellar credit scores—and sometimes you’ll be surprised at how easy it is to get a loan.
How can I get a small loan fast
A good rule of thumb is to avoid applying for a loan that’s larger than 30% of your monthly take-home pay. If you have bad credit and are looking for help with a small loan, one way to get a better deal is by working with smaller lenders instead of larger banks. Smaller lenders can be more flexible with their lending requirements, which could mean getting approved for a small loan even if you have bad credit. Keep in mind, though, that it might be harder to qualify if you don’t have any collateral (like an asset or property) to offer as security against defaulting on your loan.
What are small loans?
Small loans are small amounts of money that you can borrow, typically on an unsecured basis. While most lenders will cap your borrowing at around £1,000 to £2,000 or so (the only way to get a larger loan is by using the property as collateral), small loans can be a great source of funds for short-term goals or for paying off other debts.
For example, if you’re looking to pay down some credit card debt but don’t want to dip into your savings, a small loan could help you reach your goal faster. Or if you need some extra cash for home repairs or even just some new clothes, a small loan might be right up your alley.
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How much will a £500 loan cost?
The cost of a £500 loan will depend on several factors, including how much interest you’re paying and how quickly you pay it back. If you borrow from a bank or payday lender at 12% interest over two months (which is possible if your credit score is between 560 and 650), for example, that £500 loan will end up costing about £585.70—and keep in mind that includes fees.
What are the criteria to get a £500 loan?
The criteria to get a £500 loan depends on how much you make and your credit score. For a loan of that size in the United Kingdom, you would need to make at least £1,200 per month and have at least two trade references. This is just an example; every lender has different requirements, so be sure to check with them directly before applying for a loan.