We offer loans for bad credit, poor credit and even no credit at all.
Here at Omacl, we understand that everyone needs access to credit, regardless of what their credit score is or what is contained on their report. Life happens, an unexpected expense presents itself and with money tight month to month, it’s difficult to find the funds to make ends meet. People with a good credit rating can easily get a loan to cover the shortfall. Or increase their already maxed-out credit card limit with relative ease. But those with bad credit often struggle.
That is where we come in. We work with a team of direct lenders who offer loans for bad credit specifically. A team who can see past a basic credit score and endeavour to provide you with funding when you need it most.
Our goal is simple. To provide you with quick and easy access to fast cash, regardless of your credit status. So if you have bad credit, poor credit or no credit history at all. You’re still welcome.
How much would you like?
Representative Example: Rates from 12.9% APR to 1625.5% APR. The minimum Loan Term is 1 month. The maximum Loan Term is 36 months. Representative Example: £1,000 borrowed for 18 months. Repayment of 17 Months at £87.22 and final repayment of £87.70 The total amount repayable is £1570.44. Interest amounts to £570.44, an annual interest rate of 59.97%. Representative APR: 79.5% (variable).
Bad Credit Loans – Are they the right solution for you?
Most people who turn to bad credit loans tend to do so as they’re either out of options. Or are aware that their credit rating is poor and did not manage to take out a loan elsewhere. Many lenders, especially high street banks consider your credit score to be the be all and end all when it comes to accessing your borrowing eligibility. This can often lead to people with even a relatively good credit rating being refused, let alone a bad one.
But regardless of their lending preference, there is a huge demand for borrowing by those with a below-par credit score. Sometimes due to having no credit rating at all, or perhaps due to missing a payment 6 years ago. Whatever the reasoning, the demand exists and Omacl is here to facilitate it.
A Good Solution, Even With No Credit Rating
As to whether it’s the right solution for you, it would depend on your current credit status. If you have no credit rating at all, a bad credit payday loan could perhaps assist you in future by illustrating to future lenders that you’re able to take on debt, manage it and repay it. As well as giving you access to the cash you need today. Likewise, if you have a bad or poor credit rating, you may find yourself unable to take on credit elsewhere. And subsequently require a lender who specialises in loans for bad credit applicants.
In addition, bad credit loans often have a higher approval percentage than traditional loans, so if your credit status is less than perfect, it could be an ideal solution.
Understanding Credit Scoring – and How to Find Out Yours
There is no industry wide, standard scale when it comes to a credit score or rating. Each CRA or credit reference agency has their own scoring and tallying system, some of which we’ve linked below but all agencies base their scores on the same group of factors. So regardless of which agency you use or what scoring model, the same elements of your credit history will play a part.
In the UK, your credit report contains your credit history from the past 6 years. And your activity throughout this period contributes to your overall score. So, a missed payment 6 years ago could still have an influence in your report today. Therefore, it’s important to maintain a good credit report, check it regularly and avoid at all costs anything which might leave a black mark.
Common Reasons for Bad Credit Scores
Some common factors considered to have a negative impact on your credit report are as follows:-
- Late or missed payments.
- Exceeding credit limits.
- Changing addresses frequently.
- Current address not matching that of the loan application.
- County Court Judgements (CCJ’s)
- Debt Relief Orders (DRO’s)
- Individual Voluntary Arrangements (IVA’s)
- Bankruptcy
- Unauthorised overdrafts.
- Never having taken on credit.
- Open/historic accounts.
- Lack of electoral roll presence.
… and many more. All the above will significantly downgrade your score. But all are entirely avoidable with proper budgeting and good financial management. And above all else, it’s important to be aware of your situation, know what your score is, and what is working for you and against you. And perhaps there are inconsistencies you can address regardless. Therefore it’s important to keep tabs on your credit report as often as possible. All of the UK CRA’s allow you to do this entirely online, some at a cost, however.
Credit Reference Agencies
The 3 main credit reference agencies in the UK are –
As mentioned above, all have their own scoring criteria, so if you run a report on each, you’d likely get a different result. But they do all score on the same metrics, so if you’re bad/poor/good or even excellent on one, you’ll likely have the same overall rating on the others.
Each lender has its own preference for which CRA to use in the decision-making process. Some divulge it, some don’t.
Good Credit Is Easier to Achieve than You May Think
Credit scores are built. You don’t automatically start with a good one. But building a good or even perfect credit score is easier than you may think. Even if you’re starting from scratch with no credit rating whatsoever. To get a good credit rating, you need to have had credit in the past. A lender wants you to demonstrate that you’ve handled debt in the past responsibly, made all your payments, not exceeding the agreed limits, stuck to the terms, and ultimately repaid your balance in full.
There is a high chance you will be approved for a loan or credit in future if you can demonstrate the above.
Requirements for a Perfect Credit Score
Here are some of the requirements for a perfect credit score: –
- Have a history of taking on and paying back loans/cards without issue.
- Never exceed agreed limits.
- Maintain a presence on the electoral roll.
- Never miss payments.
- Stay well within your credit limit, don’t get too close to the max.
- Close inactive accounts.
- Regularly check your credit report for inconsistencies.
- Keep personal information updated.
- Have a record of previous addresses and time lived at each.
The above is offset against any bad credit markers on report. So even if you fulfil all the above, you may still have a poor credit score. But if you stick to the above, over time it will resolve itself.
I have a bad credit score… But I’m not sure why?
Sometimes, people do suffer from a bad credit score even if they’ve done nothing that they consider “wrong” in the past. Here are some factors which are perhaps dampening your credit score which you have maybe overlooked: –
Old/Open Accounts: This is a common issue where an old bank account with no balance that you haven’t used for a long time. Or a loan that has not been fully marked as repaid is dragging down your overall score. Fortunately, issues like these are relatively easy to resolve by simply asking the bank or lender in question to properly close the account on your behalf.
False Missed Payments: On occasion, a loan payment you send might not arrive in time or a system error stops the payment from being credited properly. Sometimes even human error plays a part, and you may have a record of some historic missed payments on various loans and/or credit cards you’ve had in the past. Therefore, it’s important to check your credit report regularly. Fortunately, just like the above, it’s simply a matter of getting in touch with the lender and asking them to update the historic data. Assuming it is a mistake of course.
Lack of Electoral Roll: A presence on the electoral roll is one the key factors used to determine your eligibility for a loan by lenders. This is to check if you are who you say you are and that you really live at the address you specified in the application process. Whilst voting rights has nothing to do with loan applications, an entry on the roll is borderline essential if you want approval for any type of significant credit.
Less Common Reasons for a Bad Credit Score
Credit Limits: It goes without saying that you should always stick within your credit limits. Going over them is a huge red flag to potential lenders. But being too close to your limit can also have an effect. Particularly if you have lots of open loans and active credit cards. If you’re close to your limit and your credit rating allows it, it would be worth increasing your limit so you’re not so close to the edge. Even if you don’t immediately need the funds.
Identity Theft: Unfortunately, this is becoming an unwelcomed but common addition to society. It involves someone stealing your identity to take out loans and credit cards in your name. Unless you ran a credit report or got a letter in the post referring to a loan you know nothing about, you may never know. Resolving the issue by proving it wasn’t you can be a little more difficult than handling a false missed payment or old account but the sooner you start the process, the better.
Bad Credit Loans vs Personal Loans – Making the Right Choice
Whilst as a financial product, a bad credit loan and a personal loan offer the same ultimate solution, the specifics in terms of the amounts borrowed, interest rates, repayment terms and overall application success/approval rates can differ wildly. Below we’ll run through some of the key topics surrounding both loan types and how they differ between products. This should help you make an informed decision on which loan type is best for you.
Interest: The key difference and often one of the most important considerations with any loan is the interest. This is the percentage of the total amount you’ll repay on top of the funds you borrow. Personal or regular loans will often have a lower interest rate than bad credit loans as those accepted are a less risky proposition versus someone taking out a bad credit loan due to chequered credit history.
Easier Approval
Approval/Acceptance: Typically speaking, you are more likely to get accepted for a bad credit loan than a personal loan. This is because the requirements in terms of your credit score are not as strict (hence the name). Bad credit loans are offered by lenders who look at other factors outside of your credit report. Factors such as your current income versus expenditure. It should also be noted that even if you have no credit rating whatsoever due to never taking out a loan before, you might find yourself with a better chance of approval without the need of a guarantor by applying for a loan targeted at those with a less than perfect credit score.
Borrowing Amounts/Terms: Bad credit loans tend to be for lower amounts than personal loans. There is simply too much risk on the part of the lender to be able to match the amounts offered via other loan types. But the amount you’re able to borrow is still significant. Typical loans for bad credit such as those offered here at Omacl have an upper limit of £5,000. Some personal loans however can be for as much as £50,000 or more depending on your credit status. You will also find the max term length for bad credit loans to be significantly shorter.
Credit Brokerage Vs Direct Lending – What’s right for you?
To decide which is the best avenue to pursue, you first need to understand the key differences between a credit broker and a direct lender. Both come with numerous advantages but depending on the loan type you’re interested in, the amount you’re looking to borrow and your credit score, one may well be a better option than the other.
Credit Brokers
A credit broker such as Omacl operates by taking an applicant’s request and essentially asking multiple lenders if they’re interested in offering a loan to that person. This is all done behind the scenes, usually via an automated process and typically results in an applicant, even if their credit score is below par, being matched with a lender. A lender who is willing to lend them the sum requested. Therefore, credit brokers are often preferred when it comes to loans for bad credit. As by using a broker you increase your chances of approval significantly.
Direct Lenders
A direct lender (as the name suggests) is a lender who will borrow the money to you directly. No middleman, you will always deal with them directly. They will facilitate your request from start to finish. The only real downside to using a direct lender is that is lessens your chances of approval. If you have a good credit score, getting approved for a loan at any direct lender should be relatively straightforward.
If you have a poor or low credit score however you may run into difficulties. Keep in mind as per the above also that applying to multiple direct lenders and being denied due to your credit history may end up being detrimental to your score.
Omacl’s Eligibility Requirements
Omacl makes getting a loan extremely straightforward. Our entire application process has been designed from the ground up. With a view of getting you the money you need when you need it in a safe, secure, responsible, and hassle-free manner. As a result of this, we’ve created a solution allows you to apply for a loan in less than 5 minutes. And have a decision presented to you on screen around 2 minutes later.
Here at Omacl, we only request the most basic personal details to determine if you’re eligible for one of the bad credit loan solutions. We will also ask for some general information surrounding the source of your income, amount of income and month to month expenditure. This is primarily to make sure you’re able to service the loan as agreed. We will also request your bank account details (UK current account) to transfer the loan funds should you be approved, and you accept the loan terms.
Applying for a Loan
In order apply for a loan at Omacl.co.uk, you will need: –
- To be a UK resident with a UK address.
- To maintain a UK bank account (current).
- Be over 18 years of age.
- Receive a regular income (to your designated bank account) either via employment, self-employment, or benefits*.
* Our lending partners do not consider some benefit types as include. These include housing benefits, job seekers allowance or income support.
If you would like to apply for a loan, just head over to our application form to start the process. Upon approval, it is possible a lender will offer you a different loan amount and/or term than you originally requested. You are under no obligation to accept this offer. And no mark will be left on your credit report should you choose to decline.
Managing Repayments, Budgeting and Cash Flow Tips
More often than not, people will fall into uncontrollable debt issues because of poor money management. As opposed to a new loan or credit card itself being the primary cause. It’s so easy to miss a payment here and there or plan to make a payment a week later. Allowing the chance for something else to crop up which is a higher priority. It happens, but if it’s not monitored and dealt with in a timely fashion, it can often spiral out of control. Therefore, creating a budget (and sticking to it) is so important. Below are some tips to help make sure you keep up your loan repayments and avoid any issues further down the line.
Budgeting: As touched on above, budgeting is the key to successful money management. If you take out a loan via Omacl (or any other lender) make sure to treat your loan repayment like any other bill. You need to have the funds available, in your account, on that specific day, just like you would if you were paying a utility bill. This way you know exactly how much of your wage to allocate each month. Along with how much disposable income you have left over to spend as you see fit.
Direct Debits: Making a manual, single payment month to month is a sure-fire way to miss payments. Not only do you need to remember the payment date and amount due, but you also need to be present to action it and have the funds readily available. It sounds simple, but it’s so easy to overlook. Setting up a direct debit to make the repayment month to month on your behalf will alleviate all these issues.
Lender Communication
Lender Communication: If you’re unable to make a repayment one month, for whatever reason. It’s important that you talk to your lender. In some cases, the lender may be willing to give you a payment break or roll the amount onto the following month. This is much better than simply missing the repayment entirely. Or being charged extra interest as your loan term extends and leaving a black mark on your credit report.
Early Repayments: Repaying a loan early (assuming no associated fees or penalties become incurred) or even making extra repayments to lessen the term of your loan will allow you to clear your debt much faster. And in turn give you access to more cash month to month. It will also be a huge positive when it comes to your credit report as it shows you can be trusted as a borrower to other lenders in future.
People Love to Borrow Via Omacl – Here’s Why
Omacl is a well-established, reputable, trusted and highly valued operator in the personal finance sector for over 5 years. Our customers have nothing but good things to say about us. This is primarily due to our ability to match people looking for loans for bad credit with UK based lenders. Lenders who can facilitate their request. Our customers turn to us at their time of need. And we consider it our responsibility to assist. Here are just a few reasons why people use Omacl and why you’re in safe hands should you choose to use us to help you find a loan: –
- Well established, over 5 years in business.
- Loans for bad, poor, and even no credit.
- No guarantors on any of our loan products.
- 24/7/365 service and support.
- UK based limited company.
- FCA approved and regulated.
- Fair customer treatment and responsible lending.
- Flexible loan amounts and terms. Easy repayments.
- Quick application, instant decision, fast/same day transfers.
The list goes on. We truly believe we’re one of the most reliable operators in the sector and our customers tend to agree.
How Does Omacl Compare?
Omacl Loans for Bad Credit FAQ’s
Is it better to take out a loan for bad credit or a regular loan?
Do you practise responsible lending and fair customer treatment?
I have no credit rating. Can I still apply for a bad credit loan?
Debt Management – Help Is at Hand If You Need It
Getting into debt is easy, but getting out of it is a real challenge. Especially if you’re not armed with the right tools and knowledge. Fortunately, as a UK resident, you have access to all the free advice you could wish for along with several organisations who make it their mission to help people out of their debt struggles. Below you will find a collection of resources and a description of what each can offer by way of debt advice and practical, tailored services.
Debt Resources
StepChange: A UK based debt charity who offer lots of information on debt as well as help setting up tailored plans and solutions such as debt management plans (DMP’s), debt relief orders (DRO’s), and IVA’s (individual voluntary agreements). They can also guide you through equity release as a means of debt consolidation and even assist with bankruptcy if there are no other options. Whatever you need, they exist to help you.
NationalDebtline: This popular debt charity offers free, independent debt advice via several channels including a web-based chat. Their website features a ton of debt fact sheets that are easier to consume than longer form articles and budgeting advice. They also operate a sister service named Business Debtline should you be self-employed but suffering with debts associated with your business. A common issue in the aftermath of COVID-19.
MoneyHelper: This is the UK government’s primary offering when it comes to money management techniques, tips, and advice. It covers everything from creating a monthly budget to repay your loans right through to how to deal with lenders should you be unable to. Unlike the two resources above however, it doesn’t confine itself to personal debt related issues. It also covers subjects such as family, property, pensions, savings and work.
