If you need a £300 loan or another fairly small amount of money to borrow, but you have a bad credit record, then you may worry about how you will qualify to be able to borrow money. Most lenders will do a credit check and they will not lend money to those that have a poor credit record. Sometimes, credit reports are incorrect and so it is worth checking it out and seeing if it is correct. This will enable you to be able to make changes to it, if it is incorrect and therefore you may be able to improve it and improve your chances of borrowing money. However, if it correct, then you may have to look outside of traditional borrowing to get the £300 loan that you need.
Once you look beyond the traditional lenders, you do get a lot less choice with regards to borrowing. You have a few choices and the main ones are probably the following:
Rates from 49.9% APR to max 1333% APR. Minimum Loan Length is 1 month. Maximum Loan Length is 36 months. Representative Example: £250 borrowed for 30 days. Total amount repayable is £310.00. Interest charged is £60.00, annual interest rate of 292% (fixed). Representative 669.35% APR (variable).
If you do not have friends and family that you can borrow from or do not want to ask them, then this will not be an option for you. However, even if you do have friends and relatives that have enough money to loan to you, you may be reluctant to ask them because you may fear that it will have a detrimental effect on your relationship with them. Money can be the cause of many arguments and it may just not be worth it. A logbook loan is a form of lending where you use your vehicle as collateral. This is therefore only available to a vehicle owner and can be risky because if you miss a repayment your vehicle could be taken from you. A loan shark is someone best avoided as they are not regulated and can charge you whatever they like taking advantage of the most vulnerable borrowers. Therefore the short-term loan could be the best option for you.
A short-term loan is a loan where you just borrow a small amount for money and repay it over a short period. They normally do not do strict credit checks and so are useful for anyone with a poor credit record. The loans are organised very quickly which means that it can be possible to get the money that you need on the day that you apply. Often with this sort of loan you will need to repay it all in one lump sum when you next get paid. There are some where you can repay over a longer period of time though. Therefore you can find a repayment schedule that will suit you.
Where to find short-term loans
As short term loans are not available through regular lenders, you may find it harder to find them. They do not appear on comparison websites or things like that and so you may wonder where to look. You may see some advertising, but it makes sense to compare different lenders to find the right deals for you. Looking on a search engine for a short-term loan can be very time consuming and sometimes even confusing. It can therefore be worth going through Omacl who will take some details of the loan that you are looking for from you and then match you up with lenders who are willing to give you a loan. This will enable you to see your options and pick the lender that you think will be the best for you. You should find that you will find at least a few lenders that will be happy to provide the loan that you need. Then you will need to compare them and see which looks to be the best for you. It is wise to look at various factors such as the interest rate, fees, late repayment charges, number of repayments, repayment amounts, customer service and things like this. You want to be sure that you are choosing the best company for you. It can still take some time to find out this information but it is worth it because you can be sure that you will pick the loan that suits your needs and that you will have the very best chance of being able to repay it.