If you are looking for instant loans for bad credit, you may find that there are a lot to choose form and be rather confused. You are likely to come across a selection of lenders and wonder whether they are better than the rest. It can be difficult to know how to tell. However, if you consider what features you want from your loan and lender to start with, it will enable you to see which fit those criteria and which do not and this can help you to pick. There are even companies such as Omacl which will match your requirements to lenders for you and let you know which lenders will be the best. However, what factors should you be looking out for?
Cost is often one of the most important factors for many of us. You will not want to have to pay more than you have to for your loan. Of course, there will always be a charge with a loan and instant loans for bad credit can be one of the dearest because of the high risk that is being taken by the lender. However, if you can search for a loan which is cheaper than others, then this will mean that you will save money. Lenders have to tell you how much you will repay in total and on most sites you can actually tell them how much you want to borrow so you can calculate how much you will have to repay. This allows you to calculate the cost of the loan and to compare different loans to find which will be the cheapest. With conventional lenders they will often advertise a loan rate and then increase it for customers with a poor credit record. Many short term lenders do not do a credit check and so you are more likely to get the advertised price, which can also be more reassuring.
Representative Example: £400 borrowed for 90 days. Total amount repayable is £561.92 in 3 monthly instalments of £187.31. Interest charged is £161.92, interest rate 161.9% (variable). Representative 305.9% APR. We are a broker not a lender. We don't charge fees. We don't sell your personal information.
As well as looking at the cost, it is good to think about how you will repay the loan. Different lenders may vary in their repayment terms and it is worth looking at that. Especially if you’re talking longer terms like 12 month loans. Consider how much you can afford to repay each month and whether you will manage what the lender is asking. Some loans will ask for one lump sum and others will spread repayments, meaning that they are smaller amounts. It is good to look at your finances and calculate how much spare money you have each month and therefore how much you would have available to make a loan repayment. It may be that you could afford a lump sum, but it may be that you want smaller repayment amounts so that you can manage them easily. If you are not sure how you will manage any repayment, then you need to come up with a plan before borrowing any money. Consider what you need to do to afford the repayments, perhaps cut down on your spending or try to earn more money, so that you can cover the costs.
There may be a risk that you could miss one or more repayments and it is worth finding out what would happen if this was the case. Like with all lenders, you will find that there will be charges if this happens. It is worth seeing what charges each of the lenders that you are considering has, as that could be another factor to think about when you are picking between them. You may think that there may be no chance you will miss a repayment, but it is still wise to be aware of the consequences. If there are two lenders that are very similar then this could be a way of choosing between them.
If you any questions, queries or problems before or during the term of the loan, then you will want to be confident that they will be answered in a professional way. You want to be able to get through quickly and be able to speak to someone who is polite, friendly and very helpful. This could make a big difference if you have a problem that needs quickly dealing with and you want to ensure that you can get the help that you need as quickly as possible.