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You Can Still Get a Loan, Even With Bad Credit

Banks and financial institutions would rely mostly on your credit rating as a deciding factor whether or not to approve your loan application or reject it. A good credit rating gives lenders, whether banks or financial institutions, the confidence to trust that you would be able to make your repayments. As a matter of fact, your credit rating would also be a determining factor of how much interest you would be charged against the loan that you are getting. So, if you have a bad credit rating, it might be nearly impossible for these banks and financial institutions to approve your loan application. If you get really lucky enough to be granted a loan, however, you might think twice about actually being lucky because of the incredibly high-interest rates you would be faced with. Loans for people with bad credit are hard to come by, so when a financial emergency arises, it might be hard to look for possible, or in lucky cases – affordable, options on where to get the money from. Lucky for you, with TFS Loans, you would not have to look farther anymore, so you could get a loan on financially bad days.

Lower Rates, Longer Repayments

With a bad credit loan from TFS Loans, you would be able to enjoy lower interest rate and charges compared to getting one from other financial institutions or other similar loans such as payday loans. With payday loans, you would also be given relatively a shorter amount of time to pay it off, hence causing the interest rate to be higher and higher as time passes by. When you apply and get approved for a payday loan today, you would usually have up until the next payday to pay it off, or else, you would incur additional charges and face higher interest rates. At TFS Loans, when you apply and get approved for a bad credit loan, you have a minimum of 12 months or 1 year to pay off the minimum loan amount of £1,000. For higher amount loans, you would be able to enjoy the flexibility to pay it off at a range of 24 to 60 months. Payday loan interest rates average between 15 to 20%, at a shorter repayment time, but it could also bloat up to more than a thousand percent should you fail to make the repayments. The lowest representative APR TFS Loans would charge a loan applicant is only 29.9% and maxes out at 69.9% for smaller valued loans.

Never Miss a Payment

TFS Loans has a high approval rate for bad credit loan applications because of its lending model – through Guarantor Loans. With guarantor loans, bad credit loans are much easier to approve and give out to people who are in need. Through guarantor loans, you would need to find someone whom you really trust and who also trusts you back. How it works is that your guarantor’s credentials would be used in assessing the approval of your loan. The loan would be in your name, but it would be your guarantor’s responsibility to make sure that all of the monthly loan repayments would be paid off, even if you cannot. When there is a safety net to ensure that you would never miss a monthly repayment on your line, it would have a domino effect on your credit rating. Meaning, you would be able to work your way into a good credit score as you pay off your loan.

Flexible Amounts

You could apply for loans starting at a minimum of only £1,000 and up to as much as £10,000 with increments of £500. If you have a guarantor who has a good credit score but does not have a property to his or her name, you would be able to loan up to a maximum amount of £10,000. If you need more money than that, you could loan from £10,500 up to a maximum of £15,000 if you have a guarantor who is a homeowner. For any amount of money that you would loan, you would be able to enjoy flexible amounts of monthly repayments, depending on the affordability and of course your capacity to pay it off. A £5,000 loan would score you a 39.9% representative APR which you could pay off within 24 months at the minimum or 60 months tops. If for example, you choose to pay it off at the minimum of only two years, you would have to pay a monthly repayment of £290.17 and total repayable of only 6,964.08 at the end of your loan period. But if you wish to pay a smaller amount each month, you could opt to pay off your loan within 60 months so you would only have to shell out £174.50 each month, but at a larger total repayable of £10,470.