Having a poor credit score can have serious consequences on your financial future. For instance, most lenders will hesitate to approve you for a credit card or loan. This is a situation that many people with bad credit in the UK are constantly faced with.
However, that does not necessarily mean that it is impossible to get a loan if you have a low credit score. There are several options for you to choose from. For example, many people have benefited from bad credit instalment loans from direct lenders in the UK.
In addition to helping you fund an important personal expense, a bad credit instalment loan also gives you an opportunity to gradually build your credit score. At the same time, with this type of loan, you are fully aware of your interest fees from the word go. That means you don’t have to worry too much about more interest getting heaped on top of your debt.
Here are five benefits of choosing bad credit instalment loans:
When you need money urgently, you can’t afford to sit and wait for a bank’s approval. Many times, the process of loan approvals in financial institutions can take weeks. For bad credit instalment loans, it is possible for your loan to be approved in just a matter of minutes.
At traditional banks, it’s almost impossible to walk in and get a loan approved without proving that you actually have all the requirements to qualify for the loan. In many cases, you have to show proof of income, letters of recommendations, credit history and several other types of documentation. With a bad credit instalment loan, as long as you are a British citizen over the age of 18 and with a valid bank account and an ability to repay, you can get a loan.
3.No restrictions on how to spend the money
If you get a car loan, you can only spend the money to buy a car and if you get a mortgage, it can only go towards buying a home. With an instalment loan, you are free to decide how to spend the money. Even if you had originally taken the loan for a specific reason, if an unexpected bill pops up, you are free to divert some of the money or even all of it to pay for it.
4.Great for unexpected expenses
From time to time, you will find yourself having to deal with emergencies. An instalment loan is a viable option when you need a quick financial fix.
5.Short repayment plan
With an instalment loan, you don’t have to spend years paying it off. In some cases, 90 days is all it takes to repay the loan. Having a short repayment plan is a great thing because you don’t have to worry about interest continuing to add up over an extended period.
6.Great option for people with bad credit
The high number of people in the UK with bad credit scores would have trouble getting loans without the option of bad credit instalment loans. Some lenders of these loans don’t even bother to run a credit check. All they want to know is whether you will be able to repay the loan or not.
Bad credit instalment loans are a great option for people who would find it difficult to access loans due to poor credit scores. The fact that you can repay the loans over time makes defaulting less likely compared to normal payday loans.