Bad Credit Loans

Can I get Bad Credit Loans?

If you have a poor credit record then you may wonder whether you can get any loan, including bad credit loans. It can be a worry, especially if you need money in an emergency and wonder whether there will be any available to you. You may worry that your credit is just too bad to get a loan or something like that. There are some restrictions on bad credit payday loans and it is worth thinking about these to make sure that you will qualify.

Age

Lending is only allowed for those over the age of 18. This means that if you are younger than this then you will not be able to get a loan. This includes all types of loans and therefore you will only be able to borrow from people you know on an informal basis such as your parents. Hopefully if you are this young you will not have an urgent need to borrow money anyway.

Location

If you want to take out a UK loan then you need to be a UK resident. You will need to prove this as well by having something with your address on. This could include a driving licence or bank statement. It can sometimes be hard to prove your address if you do not pay any of the bills in the home and do not drive. However, there may be other methods to prove your address and the lender will be able to let you know what they can accept.

Income

You will need to have a regular income to get a loan. This is because the lender will need to see that you will be capable of repaying the loan. With something like a payday loan, they will want to set up a direct debit to repay the loan when you get paid. Therefore, they will need to see evidence that you are getting paid. All lenders will want to see that you have money coming in. However, do not worry if you are not earning, it could be that you have benefits or pensions coming in regularly and these will count as being an income. Some lenders might be less willing to lend to those who are not earning but it will vary between lenders. It can be worth checking with them in order to find out.

Bank Account

You will need a bank account to be able to get a loan. This is because the lender will want to set up a direct debit form the account to repay the loan. Therefore, you will need to be able to provide with that facility. Most people do have an account that is capable of having direct debits set up from them though and it is easy to get one if you do not.

Other loans

There may be some restrictions on getting loans if you already have them. This is because there is a rule that a short-term lender is not allowed to give someone more than one loan at once. This make sense because it could mean that the loans will be really difficult to repay. People may also end up getting a loan to repay another and that can lead to problems as well. It may be possible to get a loan from one short-term lender if you have a loan with another though. It is not really a sensible thing to do though as you may then struggle to repay them both.

Apart from these general restrictions you will find that there are possibly some lenders which have their own restrictions too. However, most lenders will want to encourage people to borrow form them and therefore will not have many rules with regards to who can borrow from them. This means that even if you feel that you are unlikely to get a loan, you will be likely to be able to get a bad credit loan. Other types of loans will have far more restrictions including wanting a person to have a good credit report and therefore it is more likely that you will be turned down for these.

It is well worth finding out about different loans and what requirements they have of lenders. This will allow you to assess the market and to work out what borrowing options you have. You may find that there will be a lot more options that you expected and it could be a good surprise. It is wise though, to still compare loans and lenders even if you have a small choice. You could find that they will vary in price and how they work and it is important to find the one that you think will offer you the best value for money, good repayment terms and everything else that you are looking for in a lender.