Category: secured-loans

Getting rejected for a loan can be discouraging, especially when you’re in urgent need of funds.

There can be many reasons why this can happen, and it’s essential to understand why before making any other credit applications to avoid damaging your credit history.

While some lenders will tell you why your application was rejected, they don’t always have to, even when you ask.

Let’s explore some common reasons why loans are denied and what you can do to get your next application approved.

A Poor Credit Rating

Nearly all licensed, reputable lenders will look into your credit as part of your loan application assessment.

Your credit rating is essential in getting your loan approved since it tells the lender how you’ve handled credit in the past.

A low score is usually a red flag for many lenders, and it’s wise to check your credit score to see where you stand before applying for a loan.

Sites like ClearScore or Experian allow you to check your credit score for free.

Although all bad credit is pooled into one, there can be varying levels of bad credit.

You may have defaulted on a past loan, or you simply applied for too many loans in the past.

Depending on the issue, you can find specialised lenders who help borrowers with a less-than-perfect credit history.

Related quick help guides: 

• Secured loans brokers.
• Secured loans for pensioners.
• Secured loans for self employed.
• Interest only secured loans.
• Can I get a secured loan on a buy to let property? 
• Secured business loans.

Insufficient Income

Responsible lending requires that lenders only advance loans you can afford to pay back without getting into financial hardship.

Such affordability is usually assessed by looking at your income and monthly expenditures. You’ll have little chance of approval if you apply for a large loan with a low or inconsistent income.

Ensure you only apply for loans you can afford to repay based on your income and outgoings.

Work out the repayments for the amount you’re applying for to determine if they’re manageable based on your current income.

Non-existent Credit History

Even without a credit history, lenders will consider you a bad credit borrower.

With a non-existent credit history, lenders have no way of knowing what kind of borrower you are. It’s often the case with young adults who are yet to build their credit history, or you recently moved to the UK and can’t transfer your credit history across borders.

Consistent bill payments or applying for a credit card can help you build your credit history. Some phone companies even report to credit reference agencies, and paying them on time can improve your credit score.

Apply for a Secured Loan Today

Outstanding Debts

If you currently have several outstanding debts or loans you’re repaying, it can be alarming to potential lenders, especially if you’ve maxed out your credit. It’s wise to put more effort into reducing your current debts before applying for a new loan.

Errors In Your Credit Report

Mistakes or errors in your credit reference file can lead to automatic rejections among some lenders.

That’s why it’s essential to check your credit report and ask for a copy of your file if possible. If you spot any mistakes, you can write to the credit reference agency and ask them to correct them.

You may be required to provide enough evidence to support your case, and within 28 days, the issue on your report will be investigated.

Excessive Loan Applications

If you’ve been consistently making loan applications even while getting rejected, you’ve probably been damaging your credit without knowing. Recurrent applications look bad, regardless of whether it’s to the same lender or different ones.

Successful and unsuccessful applications register search markers on your credit file. You shouldn’t keep making applications once you’re rejected before remedying the causes. You can also restrict yourself to lenders who only conduct soft credit searches that don’t appear on your credit file.

Actions To Take If You Can’t Get A Loan

Improve Your Credit History

Your credit history is one of the most likely reasons you can’t get a loan. Improving your credit score before you apply for a loan can significantly improve your chances of approval. You can do this by:

• Taking out small amounts you can quickly repay on your credit card and repaying on time without fail.
• Register the electoral roll as a voter. It can help in your verification among credit reference agencies.
• Have utility bills in your name, even if you’re sharing a house with others.
• Set up direct debits for bills to ensure they’re always paid on time without delays.

Reduce Any Outstanding Debts

Try to reduce or pay off any existing debts before applying for a new loan. Existing debt is another common reason why borrowers can’t get a loan because lenders may not believe you can handle paying off too many debts at the same time. Consider how you can plan and budget better to pay off all your obligations or find alternative sources of income.

Find Alternative Sources Of Funds

Don’t make more applications once you’ve been rejected. Multiple applications damage your future credit chances, and it’s better to find an alternative source for the funds you need. Selling off old items, borrowing from a friend or family member, or starting a side hustle can provide an alternative avenue for cash flow.

Find Specialised Lenders

Nowadays, you can find lenders who specialise in helping all kinds of borrowers in the UK. Specialised lenders will consider your application and approve your request whether you have low income, bad credit, or no credit history.

Instead of concentrating on your credit history, such lenders focus on your affordability based on your income and expenditures. They provide personalised offers suitable to your circumstances to help you get the funds you need.

You’ll not find such lenders advertised and your best bet to access them is through brokers and advisers. They can help you find suitable lenders who will likely approve your request based on your circumstances, and this saves you both time and money.

The best part is that you get access to loans without worrying about your credit score, which will help improve your credit when you repay on time.

Apply for a Secured Loan Today

Provide Security

Having security involves providing a valuable asset used as collateral for the loan. With security, the risk to the lender is significantly reduced. If you fail to repay the loan, the lender can repossess the asset and sell it as a last resort to recover any outstanding balance.

The lender knows you’ll be motivated to repay to avoid losing your asset and will be more than willing to advance the loan regardless of your credit history. Assets you can use as security include your home, car, stocks, electronics and equipment or valuable jewellery.

Remember, you risk losing your assets when you default, so only borrow what you can afford to repay.

Incorporate A Guarantor

If you’ve found it challenging to get approved for a loan independently, a guarantor can help open the doors to borrowing for you. Having a guarantor involves incorporating a responsible person in your life in the loan application. It can be a trusted friend or family member with a good credit history and stable finances.

The guarantor agrees to repay the loan when you can’t, effectively ‘guaranteeing’ the loan and reducing the risk for the lender. With a guarantor, you can find better deals and terms than if you applied for the loan on your own. Since it’s such a big ask to a family member or friend, it’s vital you only borrow what you can afford to avoid getting them into trouble.

Why Can’t I Get A Loan? Final Thoughts

The lending world has made great leaps and bounds to provide all UK residents with access to financing despite their borrowing history.

Most online lenders are very flexible, and a lending broker or adviser can help you find a suitable solution based on your circumstances.

Give Loanable a call today on 01925 988 055 and they will provide you with the best deals available to meet your circumstances and consider any credit history you may have. With their expert advice, they can guide you through the process and give you the knowledge and confidence it takes to acquire a secured loan that is right for you.

If you have read all the information on secured loans carefully and feel that you want to proceed with a secure loan, get in touch with one of Loanable’s secured loan experts by emailing hello@loanable.co.uk who can work with you to find the best deal for your needs and circumstances.

A £30,000 loan can have a dramatic impact on your life and help you cover a wide range of purposes and desires.

£30,000 is a large amount to borrow, and it can be secured or unsecured depending on your credit history and lender.

To many, a £30,000 loan is the proverbial shining light at the end of the tunnel because it makes it possible to afford things you would otherwise have to save for many years for. Here’s everything you need to know about £30,000 loans.

How Does A £30,000 Loan Work?

You can apply for a £30,000 loan online through a quick application process that only takes a few minutes. They usually involve an agreement between you and the lender where you promise to repay within the agreed timeframe.

Once you’re approved, your application will be processed usually in a short time frame. You’ll then receive a lump sum and repay the money plus interest over the chosen term until the loan is settled.

Apply for a Secured Loan Today

Most lenders offer fixed interest rates for £30,000 loans, and they’re usually repaid in monthly instalments. This means the interest and monthly payments will remain the same for the entire loan term.

When assessing your application, lenders will consider your monthly income and expenses to determine affordability.

They’ll also look at your credit history, which will tell them how you handle your finances and your likelihood of repaying the loan.

Related quick help guides: 

• Secured loans brokers.
• Secured loans for pensioners.
• Secured loans for self employed.
• Interest only secured loans.
• Can I get a secured loan on a buy to let property? 
• Secured business loans.

Uses Of A £30,000 Loan

You can use a £30,000 loan for any purpose without restrictions. Common uses include:
Personal And Business Needs

You can use a £30,000 loan to finance different personal financial needs, whether large or small. You can accomplish what you desire or buy what you need now and pay later through affordable monthly payments.

A £30,000 loan can help you buy a home, car, land, advance your education, finance your dream wedding or take your family on vacation or a holiday retreat. You can use it to invest in yourself and acquire new skills to advance your career.

A £30,000 loan can give you the boost you need to get started if you have a business idea but no funds for capital. If you already have a business, the occasional cash injection may be necessary.

With a £30,000 loan, you may be able to cover the costs of current and future business needs. It can help you get new stock, resources, equipment or when you need to expand your business or relocate.

Home Improvements

Home improvements projects can be very costly, but with a £30,000 loan, there’s no need to worry. It’s an excellent way to re-invest into your property and improve its curb appeal and value. Whatever home improvements you desire, a £30,000 loan can provide the finances you need to cover the costs.

You can use it to achieve your goals, including a new bathroom, kitchen, extensions, or conversions. A £30,000 loan can also come in handy when you need to carry out urgent home repairs or maintenance like replacing an entire roof, buying new shingles or exterminating a termite infestation.

Apply for a Secured Loan Today

Consolidating Debts

It may feel like you don’t have a way out as you struggle under the weight of multiple high-interest debts, but you do. You can use a £30,000 loan for debt consolidation where you combine and pay off multiple outstanding debts at once using the proceeds from the loan.

If you owe money on various debts with high interest rates, you can use a £30,000 loan to cover the total amount. You can eliminate the debts from different creditors and remain with only one lender to deal with.

Instead of making multiple payments to different creditors every month, you’ll be making one manageable monthly payment.

It will allow you to catch your breath, and you’ll benefit from reduced costs and the simplicity of a single loan.

£30,000 Loan with Bad Credit

Lenders may still consider you for a £30,000 loan even with bad credit. Even if your credit score is because of late payments, defaults, or county court judgement (CCJs), a £30,000 loan is still within reach.

Many understanding lenders in the UK will consider you even if you’ve had an Individual Voluntary Agreement (IVA) or are currently on a debt management plan.

Instead of focusing solely on your past financial troubles, lenders who specialize in lending to bad credit borrowers will consider your current circumstances. Working with a loans advisor can help you find specialized lenders who help borrowers with bad credit access financing solutions.

Improving Your Chances of Approval

If you have a bad credit score or are finding it difficult to get approved for a £30,000 loan, you can improve your chances or approval and get reduced interest rates by:

Providing Security

You can secure a £30,000 loan by pledging one of your valuable assets as collateral for loan repayments, usually your home. The lender will place a lien on the collateral and acquire the right to seize it and sell it as a last resort to recover the loan if you default.

With security, lenders know you’ll be motivated to repay the loan to avoid losing your asset. If you’re using your home as collateral, a home visit will not even be necessary, thanks to online property valuation, and you won’t need to contact your mortgage company.

A secured £30,000 loan is more accessible if you have a bad or non-existent credit history. You’ll get favourable terms and easy monthly repayments that will improve your credit score in no time.

Apply for a Secured Loan Today

£30,000 Loans for Bad Credit Final Thoughts

A £30,000 loan can help you cover large costs and expenses now and let you repay in easy monthly instalments over a long period. It’s crucial to ensure you can comfortably repay the loan before you commit, especially if you’re securing it against your home.

Even with bad credit, you can greatly improve your credit scores by diligently making repayments on time. Ensure you have a reasonable monthly budget and avoid additional debts before repaying the loan in full.

Give Loanable a call today on 01925 988 055 and they will provide you with the best deals available to meet your circumstances and consider any credit history you may have. With their expert advice, they can guide you through the process and give you the knowledge and confidence it takes to acquire a secured loan that is right for you.

If you have read all the information on secured loans carefully and feel that you want to proceed with a secure loan, get in touch with one of Loanable’s secured loan experts by emailing hello@loanable.co.uk who can work with you to find the best deal for your needs and circumstances.

Loans against your house allow you to borrow large sums of money and get access to the funding you need when you need it. A loan against your home is the same as a secured loan.

Unlike unsecured loans, secured loans may allow you to borrow considerable sums at a lower interest rate even if you have bad credit.

Read on to find out everything you need to know about taking loans against your house.

How Do Loans Against Your House Work?

Loans against your house are loans that use your property as collateral. You can only take out a loan against your house if you own all or part of your home in what is known as equity in your property.

The lender will use the value of your property or the equity to determine how much you can borrow up to a certain percentage of the value.

The value of your house acts as the security for the loan, and you must pay off the loan each month over an agreed time frame.

If you fail to keep up with repayments, you risk losing your home because the lender can take action to repossess and recover the outstanding debt.

Apply for a Secured Loan Today

When you apply for a loan against your house, the lender will want to see if you’ve built up equity in your home if you don’t own it outright. It involves having paid off part of your mortgage or having a home that’s increased in value.

Lenders will also look at your credit score and monthly income, and outgoings to determine affordability. They’ll use this information to decide how much they can advance to you and the interest rate they’ll offer.

Types Of Loans Against Your House

You can take out different types of loans against your house, including:

Secured Loans

These are loans secured against the value of an asset, in this case, your home. They’re also called homeowner loans, and they feature large amounts and more extended repayment periods than standard loans.

Second Mortgages

Also called a second charge mortgage, this is a secured loan that uses the equity or capital in your home as collateral. The amount you can borrow on second mortgages will depend on the difference between your home’s value and the amount you owe on your first mortgage.

It’s completely separate from the first mortgage and is an excellent way to access further advances or extra funds without remortgaging. You’ll have two mortgages to pay off on your home, and if you fail to repay either the first or the second, you risk losing your house.

Related quick help guides: 

• Secured loans brokers.
• Secured loans for pensioners.
• Secured loans for self employed.
• Interest only secured loans.
• Can I get a secured loan on a buy to let property? 
• Secured business loans.

Remortgaging

Remortgaging involves switching to a new mortgage provider without moving from your current house. You may be able to obtain a better deal with your existing lender or switch to a new lender.

Remortgaging is suitable if you’re looking for a better deal, want to fix your rates or need to take money out of your property.

Remortgaging can help you find better terms and lower rates, and the amount you can borrow will depend on your financial situation.

Features Of Loans Against Your House

A loan against your house is ideal if you’re looking for a large sum you can repay over a more extended period. Features include:

High Loan Amounts

Loans against your home enable you to borrow more considerable sums of money than unsecured loans. The value of your property or equity will influence the amount you can borrow. The more valuable your property is, the more money you can borrow.

Low-Interest Rates

A loan against your home is less risky for lenders, making them more willing to advance a loan at more favourable interest rates. Repayments will also be spread over long periods, further reducing the interest rate. Since lenders will make their money over the long term, they’ll happily offer attractive interest rates.

Apply for a Secured Loan Today

Instalment Payments

With loans against your home, you can often borrow over longer periods than personal loans. You’ll repay in small manageable monthly instalments. Repayment plans are outlined right from the outset, making it easy to plan for monthly payments.

The instalments include a percentage of the principal amount plus interest spread evenly over the loan’s duration.

Uses Of Loans Against Your House

It’s risky to borrow against your home, and you should only consider it when there are no alternatives. Loans against your house are suitable for large projects, including:

Home Improvements

Home improvement projects are an excellent way to re-invest in your property, increase its value and curb appeal. Such projects can guarantee a lucrative deal when you decide to sell, but they can be expensive.

You can take out a loan against your house to cover the costs of your desired home improvement project. You can use the funds to finance a new kitchen bathroom, extensions, conversions, renovations, home maintenance or needed repairs.

Personal And Business Needs

You can borrow against your property if you need more money than standard personal loans and want long repayment periods. The funds can help you make large purchases like buying land or a second property.

If you have a business idea but no funds for capital, a homeowner loan may help you get started. You can also use it to inject cash into your business to finance needs like resources, stock, equipment, expansions or investments in new premises.

Loans Against Your House with Bad Credit

You may qualify and get approved for loans against your house, even with bad credit. Your property will significantly reduce the risk for the lender because they can reclaim the outstanding debt by repossessing your home if you default.

It’s a more accessible option if you’ve found it challenging to get a loan because of your credit score. You can borrow more considerable sums for longer, and the easy repayments will help to improve your credit score.

Read our complete guide on how do secured loans work? 

Loans Against Your House Final Thoughts

Loans against your property can give you access to large amounts, more extended repayment periods and favourable interest rates. However, they come with the risk of losing your home as the lender has a legal claim to your property if you default.

It’s crucial to ensure you can comfortably pay on time every month throughout the loan’s term, even when your circumstances change.

Give Loanable a call today on 01925 988 055 and they will provide you with the best deals available to meet your circumstances and consider any credit history you may have. With their expert advice, they can guide you through the process and give you the knowledge and confidence it takes to acquire a secured loan that is right for you.

If you have read all the information on secured loans carefully and feel that you want to proceed with a secure loan, get in touch with one of Loanable’s secured loan experts by emailing hello@loanable.co.uk who can work with you to find the best deal for your needs and circumstances.

Borrowing against your house involves taking out a homeowner loan. You can find lenders in the UK who offer homeowner loans from £1,000 to £2.5 million.

However, the amount you can borrow against your house will depend on several factors, including:

• The property’s value.
• The equity you have in the property.
• Your credit history.
• Your affordability.
• The LTV ratio.

When you borrow against your home, you’ll be able to get higher amounts than you could with an unsecured loan. The risk to the lender is reduced because they can repossess the property and sell it as a last resort to recover the owed debt if you default.

Lenders will look at your monthly income and outgoings to determine how much you can afford to borrow. They’ll also often look at your credit score to determine how well you handle your finances and debt repayments.

A bad credit score may not necessarily disqualify you from borrowing against your house, but it can influence the amount and interest rates lenders are willing to offer.

The equity you own in your home will highly determine the amount you can borrow rather than the worth of your house. This is especially significant if you have a mortgage on your home.

Apply for a Secured Loan Today

What Is House Equity?

House or home equity refers to the value or portion of your property that you truly own. You’ll have 100% equity in your home if you own your house outright, but the proportion will be lower if you still have a mortgage.

You can easily work out the amount of equity you have in your house by subtracting the amount you have left in your mortgage from its current market value.

For example, let’s say you bought a house worth £300,000, put down a deposit of £60,000, and took out a mortgage to cover the remaining £240,000. In such a case, you would have £60,000 equity in your home.

Remember, the equity in your home grows over time as you continue to repay the mortgage and as the value of the property increases. If you’ve owned your house for several years and you’ve kept up with mortgage repayments, you likely have much more equity in it than when you originally bought it.

The more equity you have in your home, the more you’ll be able to borrow against your house.

The Loan To Value Ratio

The loan to value (LTV) ratio is an important metric that assesses the lending risk lenders carry by providing you with a loan. It’s an important figure for re-mortgagers and homebuyers, and it will have a considerable impact on your borrowing power.

The LTV refers to the size of the loan relative to your property’s value or the equity you have in the property, and it’s expressed as a percentage. It shows how much equity you have in the house you’re borrowing against or how much money would be left if you sold your home and paid off the loan.

The LTV is vital when determining how much you can borrow against your house because it assures lenders. Lenders use it as they consider whether to approve a loan and what terms to offer. If the LTV is higher, the risk is higher for the lender, and if you default, the lender is less likely to recover their money by selling your house.

All homeowner loans set a maximum loan to value ratio. If yours is too high, your loan may not be approved, or you may be required to purchase mortgage insurance which protects the lender if you default and they’re forced to foreclose.

Related quick help guides: 

• Secured loans brokers.
• Secured loans for pensioners.
• Secured loans for self employed.
• Interest only secured loans.
• Can I get a secured loan on a buy to let property? 
• Secured business loans.

Calculating the LTV

You can calculate your LTV by dividing the amount you wish to borrow with the equity you have on your house.

LTV = Loan amount / Equity

For example, if your equity is £300,000 and you want to borrow £180,000, the LTV would be 60%.

If you have an outstanding mortgage balance on your property, you must deduct the balance before calculating your LTV.

For example, if your home’s value is £300,000 and you have an outstanding balance of £60,000 on your mortgage, you have an equity of £240,000. If you want to borrow £180,000, the LTV will be 75%.

Apply for a Secured Loan Today

How The LTV Impacts Borrowing Against Your House

Interest Rates

The higher the LTV, the higher the interest rates since lenders will consider you as riskier. Therefore, you should aim for a lower LTV, which will reduce the interest rates and translate to lower monthly payments and less strain on your finances over the loan’s term.

Loan Amount

The LTV will determine your credibility, and the lower it is, the easier it becomes to qualify for more favourable terms, including higher loan amounts and low rates. If you’ve been paying off your mortgage and your home has risen in value, then your LTV will be lower, helping you qualify for better deals.

Can I Borrow Against My House With Bad Credit?

Yes. Even with bad credit, you can borrow against your house and get approved. The loan is secured against your property which significantly reduces the risk for the lender since they can repossess and sell the property if you default.

If you’ve found it hard to get approved for a loan because of your credit score, borrowing against your home may be an option. You may get access to higher amounts with easy repayments that will help improve your credit score.

Remember, like other forms of borrowing, your credit history plays a part in the lending decision. Lenders may charge you higher interest rates if you have bad credit or cap the amount you can borrow.

Apply for a Secured Loan Today

Other Costs To Consider

Valuation Fees

A valuation to ensure your house is worth the amount you’re borrowing may be necessary. The lender can arrange for this, but you may have to pay for it, and the costs may vary depending on your property’s location, value, or terms of the deal.

Insurance Fees

Lenders may require that you have your house insured, especially if the LTV is high. Insurance protects you and the lender when you’re unable to repay or any unfortunate event causes damage to the property’s structure.

How Much Can I Borrow Against My House? Final Thoughts

Borrowing against your house provides you with access to large sums of money depending on the equity you have in your property, your credit score, and your LTV ratio.

It also comes with the risk of losing your home if you fail to make repayments, so it’s vital to ensure you can afford the loan amount you’re requesting over the long term.

Give Loanable a call today on 01925 988 055 and they will provide you with the best deals available to meet your circumstances and consider any credit history you may have. With their expert advice, they can guide you through the process and give you the knowledge and confidence it takes to acquire a secured loan that is right for you.

If you have read all the information on secured loans carefully and feel that you want to proceed with a secure loan, get in touch with one of Loanable’s secured loan experts by emailing hello@loanable.co.uk who can work with you to find the best deal for your needs and circumstances.

APRC is the annual percentage rate of charge. It’s the interest rate associated with secured loans and mortgages.

Different secured loans often come with different rates, and it can be challenging trying to determine which loan offers the best value and is suitable for your specific needs.

In 2016, the Financial Conduct Authority (FCA) introduced the APRC to give you a more realistic view of how secured loans and mortgages will cost over the long term.

Here’s everything you need to know about APRC rates.

How Do APRC Rates Work?

APRC rates are expressed as a percentage, and they bring together all the charges of the loan, including fees and other costs.

The APRC is calculated as if you’ll keep the secured loan or mortgages for the full term without any changes.

The APRC rate will help you compare secured loans so you can understand how much any deal you’re considering will cost you. This ensures you make an informed decision among secured loan options and choose the best and most suitable deal available.

You can find secured loans that offer lower interest rates, known as an introductory rate, for the first few years before the rates revert to the lender’s standard variable rate. The APRC considers this and shows you the impact the different rates, together with any other charges, will have over the full term of the secured loan or mortgage.

Apply for a Secured Loan Today

Uses Of APRC Rates

The APRC rate gives you a glance at which lender provides the best deal after considering all the costs. The lower the APRC rate, the cheaper the loan.

Marketers will often try to persuade you to choose a specific loan option with attractive offers like low starting or introductory interest rates. However, once you consider all the factors, you may find that a once appealing offer is quite expensive compared to other lenders.

For example, once the introductory period ends, the lender may introduce high variable interest rates. The APRC helps you see that and ensures misleading offers with attractive starting rates do not sway you. With the APRC, you can compare secured loan costs from different providers using the same parameters.

Related quick help guides: 

• Secured loans brokers.
• Secured loans for pensioners.
• Secured loans for self employed.
• Interest only secured loans.
• Can I get a secured loan on a buy to let property? 
• Secured business loans.

Calculating The APRC

The APRC considers the initial or introductory interest rate and the long-term interest rate together with any other charges and calculates a percentage. The percentage tells you how much it would cost you every year if you stayed on the same deal until the loan is fully repaid.

The APRC rate combines factors specific to you, including the loan term, loan amount, credit history, and house value. Such factors are assessed at the initial application stage when checking your affordability and total loan cost.

Consider an example of a borrower who wants to buy a house worth £150,00o. With a £20,000 deposit, the APRC can help you compare two possible secured loans for £130,000.

• The first option offers an introductory rate of 2.99% for 24 months. It then increases to a standard rate of 4.94% for 18 years with arrangement fees of £250.
• The second option has a starting interest rate of 3.26% for 24 months. It then increases to a standard rate of 4.34% for 18 years with arrangement fees of £1,400.

At face value, the first option is very tempting. You may think it’s a no-brainer because it has a lower initial rate and fewer fees. Here’s where the APRC comes in handy. The first option would cost £218,026, while the second option would cost £205,829 when considering all interest rates and fees.

The APRC for the first option would be 4.6%, while the APRC for the second option would be 4.2%. Therefore, the second option would save you £12,000, making it the better and cheaper option over the loan’s lifetime.

Suitability Of APRC Rates

The suitability of APRC rates when comparing secured loan options will vary. When calculating the APRC, it’s assumed that you’ll keep the same secured loan or mortgage plus the lender for the loan duration. This can limit the suitability of the APRC rates.

You may want to move from your current home or compare other deals when your fixed term ends and switch to another lender with a more competitive deal.

It’s important to consider such factors before looking at different APRC rates, including how long you plan to stay on the property or life events that are likely to happen and impact your living situation.

If you don’t plan to stay with the same provider or will be actively switching, the initial rate will be more important than a high APRC. Since you plan to pay off the mortgage or secured loan early and get a new one when you move or switch, the initial rate will apply for a larger proportion of the loan than is shown in the APRC, which assumes you’ll be in the deal for the full term.

Apply for a Secured Loan Today

How Does Representative APRC Work?

The representative or headline APRC is the rate advertised with the assumption that all other factors are constant. Most people approved for the secured loan or mortgage product will pay this rate or lower. The interest you’ll be charged when you take out a secured loan or mortgage will depend on:

• The amount you’re borrowing.
• The period or term of the loan.
• Your circumstances, including your affordability and credit score.

Therefore, you may find a representative APRC advertised as 5%, but once the lender considers your unique circumstances and credit history, the actual APRC goes up to 9%. It’s vital to ensure you double-check the actual APRC once a lender approves your loan request.

APRC Vs. APR

The APRC can easily be confused with the APR because of the similar names and meanings. APR refers to the annual percentage rate and functions like the APRC. It can help you compare the total cost of loan products by showing a percentage of the interest cost you’ll pay on loans per year.

While the APR only shows the loan cost per year, the APRC shows the total cost of the loan once you repay it in full for the entire term.

APRC Final Thoughts

Think of the APRC as a tool that helps you compare secured loans and mortgages to find the best deal available. The lower the APRC, the cheaper the loan in the full term. The APRC assumes you’ll stick with the deal to the end. Always consider any possible changes that can affect your situation soon when using APRC rates to compare secured loan options

Give Loanable a call today on 01925 988 055 and they will provide you with the best deals available to meet your circumstances and consider any credit history you may have. With their expert advice, they can guide you through the process and give you the knowledge and confidence it takes to acquire a secured loan that is right for you.

If you have read all the information on secured loans carefully and feel that you want to proceed with a secure loan, get in touch with one of Loanable’s secured loan experts by emailing hello@loanable.co.uk who can work with you to find the best deal for your needs and circumstances.

Calculating your income and expenditure helps ensure your budget is accurate. It’s an excellent way to organise your finances and gain better control of your cash flow.

There are many income and expenditure forms available on the internet.

They’re also called budget planners or budget calculators, and you should choose one that suits you best to understand your financial situation better.

Let’s explore everything about income and expenditure forms.

What Is An Income And Expenditure Form?

An income and expenditure form is a standard or common financial statement you can use to list all your income, debts, and spending every month. An income and expenditure form is similar to a budget in many ways:

• They both require filling in your income, obligations, and expenses.
• To gain a true reflection of your financial situation, you must be as honest and accurate as possible.
• They involve costs and expenses that have more priority than others.

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Benefits Of Calculating Your Income And Expenditure

Calculating your income and expenditure is an exact method for analysing and understanding your finances. It will help you answer a few key questions, including:

Do You Spend More Than You Earn?

If you’ve found yourself building up debts or eating into your savings, you’re likely overspending. Spending more than you earn is a significant cause of debt spirals and severe problems for many UK residents.

A debt spiral involves a financially unhealthy lifestyle where you spend more than you earn, borrow to fill the gap, use most of your income to repay debts and keep borrowing to maintain the lifestyle. With all your income going towards debt repayments, you’ll have nothing left!

To regain control, you need an accurate idea of the scale and size of the problem by calculating your income and expenditure. It will help you see exactly where your money goes and identify areas where you could cut back spending.

What Can You Afford To Spend?

Calculating your income and expenditure gives you an accurate and realistic assessment of your monthly disposable income. It shows you where you’re spending to prioritise and alter what you do with your money so you can stick within your means.

Knowing what you can afford is useful when you’re thinking about taking out a loan. A standard financial statement or income and expenditure form is used and recognised by various lending and financial institutions. You can use it to show creditors how much you can realistically afford to pay them.

Most brokers and debt advice providers will initially ask you to complete an income and expenditure form when you’re looking for a loan or help with your debts. It allows them to assess your income and spending to provide the right advice according to your situation and connect you to suitable creditors.

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What To Include In An Income And Expenditure Form

A typical income and expenditure form will have the following sections:

Your Income

In this section, you’ll fill in any money you regularly receive, including:

• Employment or self-employment income
•  Child or working tax credit
• Jobseeker’s allowance
• Universal credit
• Housing benefit
• Income support
• Pension payments
• Rental income
• Housekeeping from partners or dependants

Ensure you include all types of income you receive to provide an accurate picture of your situation.

Related quick help guides: 

• Secured loans brokers.
• Secured loans for pensioners.
• Secured loans for self employed.
• Interest only secured loans.
• Can I get a secured loan on a buy to let property? 
• Secured business loans.

Your Priority Bills

Household or priority bills are the most necessary expenses, and you must account for them. Failing to pay priority bills like your rent or mortgage comes with severe consequences like repossession or getting kicked out of your home. Priority bills can include:

• Mortgage, rent or secured loan payments.
• Utilities like gas, electricity and water.
• Council tax.
• Fuel like oil, gas or logs
• TV licenses.
• Logbook loans or hire purchases.
• Child maintenance.
• Magistrates court fines.
• County court judgements.

Other Spending

Although they’re also important, they’re not necessarily as crucial as household bills. They include:

• Car insurance or breakdown covers.
• Streaming and digital television services.
• Insurance for buildings and contents.
• Pension or life insurance.
• Internet and telephone.
• Maintenance and repair costs.
• Public transport.
• Accident or medical insurance.
• Professional or union fees.
• Education fees.

Other Living Costs

Living costs include anything you spend money on every day. You can work these out using an average from recent shopping receipt figures or bank statements. They can include:

• Individual and family food costs.
• Clothes and footwear.
• Toiletries.
• Opticians and dentists.
• Hairdressing.
• Emergencies and sundries.
• Prescriptions and medicines.
• Hobbies, sports and entertainment.
• School essentials and pocket money.
• Parking costs and petrol.

If you spend too much on non-essential living costs, creditors may require more information to determine whether it’s reasonable.

Non-Priority Debts

In the final section, you’ll list down the debts you currently owe and the payments that go towards them. The amount you give creditors depends on the surplus left after you’ve covered priority payments like household bills, living costs and other expenses.

Items considered as non-priority debts include:

• Credit and store cards.
• Unsecured loans.
• Overdrafts.
• Catalogue repayments.
• Payday loans.
• Arrears from properties you no longer live in.
• Arrears from service providers you no longer use like gas or electric.

Remember, non-priority debts can become priority debts if creditors pursue and are successfully granted a county court judgement (CCJ) against you by the court.

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Expert Tips Before Calculating Your Income And Expenditure

Gather Receipts And Statements

Bring together all your receipts and statements to avoid guessing or estimating. The success of your endeavour will rely on actual income and expenditure costs.

Accuracy, Accuracy, Accuracy

We can’t emphasise this enough. Try to be as accurate as possible and avoid underestimating your expenditure. When you’re not sure, guess larger, not smaller. It will ensure you have funds leftover and you don’t fall short.

Stay vigilant of overlapping some types of spending in different sections to avoid counting them twice. If you include insurance in the other spending section, don’t include it again in living costs.

Don’t Forget About One-Off Spends

Whether it’s a birthday treat or a holiday, one-off spending will affect your expenditure costs. You can account for these by apportioning their annual costs into monthly amounts. If you include one-offs like holidays, don’t forget to subtract regular spending that wouldn’t occur. For example, if you’re abroad for a week, you won’t spend on regular petrol, parking or public transport costs.

Income And Expenditure Final Thoughts

Provided you’re honest, an income and expenditure form will give you an accurate assessment of your budget and show you what you can afford and where you spend more than you earn.

It will help you make the most out of your money, cut out necessary expenses, and stop running up enormous debts or over-commitments. If you already have debt problems, it will show you how much you can spare so you can make realistic offers to creditors.

Give Loanable a call today on 01925 988 055 and they will provide you with the best deals available to meet your circumstances and consider any credit history you may have. With their expert advice, they can guide you through the process and give you the knowledge and confidence it takes to acquire a secured loan that is right for you.

If you have read all the information on secured loans carefully and feel that you want to proceed with a secure loan, get in touch with one of Loanable’s secured loan experts by emailing hello@loanable.co.uk who can work with you to find the best deal for your needs and circumstances.

If you struggle with multiple, high-interest debts, a debt consolidation loan can give you a breath of fresh air and help you regain control of your finances.

Here’s everything you need to know about debt consolidation loans.

What Are Debt Consolidation Loans?

Debt consolidation loans are types of loans you use to streamline your debts into one for effortless monthly payments.

It can get overwhelming if you make different payments for various loans like credit cards, personal loans, store cards, or overdrafts each month.

Debt consolidations loans allow you to consolidate such debts and cover the total amount, so you’re only left repaying one lender instead of multiple creditors.

How Do Debt Consolidation Loans Work?

Debt consolidation loans relieve you from debts by giving you an affordable repayment period and reducing your monthly payments. The process is pretty straightforward.

The loan may allow you to get the funds needed to cover all your existing debts and pay them off at once.

Once you pay off all your creditors, all that’s left is one fixed-rate monthly repayment to the consolidation loans lender instead of multiple monthly repayments.

It may help you save money you’d spend on interest with multiple creditors. You’ll also get a reduced repayment amount that frees up your finances for other bills and a set repayment schedule for the entire loan period for easier budgeting.

You don’t have to balance several debts each month or borrow from one lender to pay the next with debt consolidation.

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Suitability Of Debt Consolidation Loans

You have to consider whether debt consolidation loans are suitable for you, depending on your circumstances.

It’s right for you if you’re having trouble paying off multiple high-interest debts and you need a debt solution to get you out of the monthly panic and stress of trying to make ends meet.

A consolidation loan will make managing your finances much more effortless. It’s only suitable if the loan amount puts you in a better financial situation. Before taking out a debt consolidation loan, ensure you review your existing debts i.e interest rates, terms, balances etc.

Debt consolidation loans may be suitable if you don’t see a way out of multiple mounting debts, need to reduce monthly repayments, and get extra cash flow and control of your finances.

Even with a bad or poor credit history, many understanding lenders in the UK may help you acquire a debt consolidation loan provided you can afford repayments and are eligible.

Debt consolidation loans for bad credit borrowers may feature capped loan amounts or higher interest rates to reflect the higher lender risk.

Related quick help guides: 

• Secured loans brokers.
• Secured loans for pensioners.
• Secured loans for self employed.
• Interest only secured loans.
• Can I get a secured loan on a buy to let property? 
• Secured business loans.

Eligibility Criteria for Debt Consolidation Loans

Although each lender will have their criteria, some of the essential criteria considered include:

• You’re at least 18 years old.
• You’re a permanent UK resident.
• You can prove regular income or are employed.
•  You’re not bankrupt and haven’t applied for bankruptcy.

Advantages of Debt Consolidation Loans

You need to consider the different pros and cons of debt consolidation loans to make an informed decision. These include:

Reduced And Easy To Manage Monthly Payments

When you consolidate your debts, you get a reduced monthly repayment to one lender instead of struggling to repay different amounts to different creditors. The fixed monthly payment makes it easier to budget than various debts with different rates and repayment dates.

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Easier To Get Out Of Debt

A debt consolidation loan features a single rate of interest that can make it easier to clear your debts sooner. With multiple loans with varying interest rates, most of your repayments go to servicing the interest instead of reducing your balance.

Peace Of Mind

The weight of multiple debts can drain you mentally and physically. It allows you to pay off all your existing debts and only deal with one lender with a debt consolidation loan.

Extended Repayment Period

Debt consolidation loans allow you to repay for longer, which reduces your monthly expenses. You’ll no longer have to worry about missing repayments or the mounting charges of short-term loans.

Disadvantages of Debt Consolidation Loans

Repayments May Not Reduce

Depending on how much you’re currently repaying and over what period, a debt consolidation loan may not reduce your repayments. Additionally, it will not erase your debts. It’s more like a new payment plan and not a form of debt settlement or relief.

You May End Up Paying More Overall

The amount repaid at the end of the term may be higher than the previous individual payments with a more extended repayment period. Therefore, you have to ensure a more prolonged period guarantees you peace of mind, and you can afford to make the repayments.

Considerations When Applying for Debt Consolidation Loans

Things to consider before or when applying for a debt consolidation loan include:

Repayment Cost

You need to decide whether consolidating your debts is a better option than making individual repayments. You can do this by comparing how much you’re currently paying vs. what you’ll be spending in the new repayment structure of a debt consolidation loan.

Affordability

Ensure you can comfortably make repayments over the chosen period without fail. Review your monthly income and how much goes to necessary expenses to determine what remains for loan repayment.

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Credit Score Impact

Lenders run credit checks when you apply for any credit, which can lower your credit score. Closing debt accounts as you consolidate your debts will also impact your credit rating. However, with debt consolidation loans, the effect on your credit score is only temporary.

Over time it will help you improve your credit score thanks to affordable monthly repayments. As you repay each month, your credit score improves while showing lenders you’re a trustworthy borrower.

Debt Consolidation Loans Final Thoughts

While other debt solutions exist, debt consolidation features less severe consequences. It’s suitable if you’re looking for an extended period to repay and reduced monthly expenses that help you regain sanity and control over your finances.

Give Loanable a call today on 01925 988 055 and they will provide you with the best deals available to meet your circumstances and consider any credit history you may have. With their expert advice, they can guide you through the process and give you the knowledge and confidence it takes to acquire a secured loan that is right for you.

If you have read all the information on secured loans carefully and feel that you want to proceed with a secure loan, get in touch with one of Loanable’s secured loan experts by emailing hello@loanable.co.uk who can work with you to find the best deal for your needs and circumstances.

A £10,000 loan can help you cover the costs of different financial needs and turn your dreams into reality, even with bad credit.

Various lenders in the UK specialize in advancing loans to borrowers with bad or poor credit scores, and they may readily help you get a £10,000 loan bad credit.

Let’s explore everything about a £10,000 bad credit loan.

What Is A £10,000 Bad Credit Loan?

Lenders who offer bad credit loans treat you as an individual. They consider more than your credit history when you apply for a bad credit loan.

Lenders will focus on the current facts, including how you handle your finances now, your income, and your affordability.

Bad credit loans lenders understand your bad credit score can result from different issues. You may have a negative score on your report if you were previously bankrupt, missed repayments, or made a late payment on a past loan.

You can also be a bad credit borrower if you have no credit history to prove you’re a trustworthy borrower. This can be the case if you recently moved to the UK, you’re yet to build a credit record, or you’ve never borrowed or opened a bank account.

How Does A £10,000 Bad Credit Loan Work?

When you borrow £10,000, you’ll get a fixed amount once you’re approved. All that’s left is to repay the loan plus interest in timely monthly payments over a few months or years.

The monthly payment usually remains the same throughout the loan term. The payment amount is influenced by the loan amount, the loan period, and the interest rate charged, which varies depending on your situation.

Remember, a £10,000 bad credit loan will have higher interest rates attached or more stringent terms than regular £10,000 loans. This is because of the higher risk of lending to bad credit borrowers.

However, every lender uses different criteria when assessing your application, and some may view you more positively than others.

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Uses Of A £10,000 Bad Credit Loan

You’re free to use a £10,000 bad credit loan for any legal purpose. Common uses include;

Consolidating Debt

A £10,000 loan can come in handy if you have many debts and wish to streamline them into one for easier management and repayments. The funds can help you pay off the total from different creditors, so you’re only left dealing with one lender. It’s an excellent option for regaining control of your finances and cash flow from multiple high-interest debts.

Improving Your Home

If you’ve been eyeing some significant renovations to make your home more homely or improve its value and curb appeal, a £10,000 loan can help you get started. You can use it to cover the costs of a new bathroom, kitchen, extensions, conversions, or any needed repairs and maintenance.

Related quick help guides: 

• Secured loans brokers.
• Secured loans for pensioners.
• Secured loans for self employed.
• Interest only secured loans.
• Can I get a secured loan on a buy to let property? 
• Secured business loans.

Personal And Business Needs

Whether you have a big or small personal financial need or need to make a purchase you’ve been eyeing. It can go towards purchasing a car, advancing education, turning your wedding dreams into reality, or going on a much-needed vacation.

You may also use a £10,000 loan to start a business or finance an already existing one. A cash injection can help you cover current and future business needs, including stock, resources, equipment, expansions, or relocation.

Improving Your Rates And Chances Of Approval

Lenders will usually place higher rates and stringent terms to approve a £10,000 bad credit loan because of the increased risk. However, you can reduce the lender’s risk and get better rates while increasing your chances of approval by:

Providing Security

Whilst personal £10,000 bad credit loans are unsecured, you may be able to secure them by pledging a valuable asset as collateral for repayment. It can include your car, expensive jewellery, home, bonds, stocks, equipment or other valuables.

Lenders place liens on collateral, acquiring the right to seize it if you default. The lender can repossess or take the collateral and sell it as a last resort to recover the loan balance. As such, they know you’ll be motivated to repay the loan to avoid losing your asset.

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£10000 Bad Credit Loan Final Thoughts

A £10,000 bad credit loan will help you meet different financial demands while benefiting your credit score provided you repay diligently. It’s essential to ensure you can comfortably afford to repay the loan amount before making any commitment.

When you make repayments on time, it reflects positively on your credit score, shows lenders you’re a reliable borrower and helps you qualify for even higher amounts in future.

Having a reasonable monthly budget can ensure you don’t miss repayments. Additionally, avoid additional debts that will overstretch you and make it hard to repay.

Give Loanable a call today on 01925 988 055 and they will provide you with the best deals available to meet your circumstances and consider any credit history you may have. With their expert advice, they can guide you through the process and give you the knowledge and confidence it takes to acquire a secured loan that is right for you.

If you have read all the information on secured loans carefully and feel that you want to proceed with a secure loan, get in touch with one of Loanable’s secured loan experts by emailing hello@loanable.co.uk who can work with you to find the best deal for your needs and circumstances.

Responsible lending is a top priority of the Financial Conduct Authority (FCA), and central to this is the assessment of customer affordability.

Borrowing money is a risk for both you and the lender, making it vital to ensure you can afford the repayments for the duration of the loan term.

Here’s everything you need to know about affordability checks.

What Is an Affordability Check?

An affordability check involves determining whether you can afford to repay a loan when you borrow. All lenders are responsible for thorough checks on borrowers to ensure the loan amount and duration they get are suitable for their circumstances.

Before a lender advances a loan to you, they must take steps to ensure you can afford to pay it back through an affordability check.

Failure to do this amount to irresponsible lending, and you may end up with a loan you can’t afford or is larger than your needs.

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How Does an Affordability Check Work?

Lenders must take steps to check affordability when they apply for a loan or other credit agreements.

Responsible lenders will ask you about your income and regular household expenses to assess whether the agreement is manageable. It includes reviewing how much you earn and your outgoings or committed expenditures like bills and other regular payments.

This helps them work out how much you have left from your income so they can determine how much you can afford to pay them regularly.

Related quick help guides: 

• Secured loans brokers.
• Secured loans for pensioners.
• Secured loans for self employed.
• Interest only secured loans.
• Can I get a secured loan on a buy to let property? 
• Secured business loans.

Income Assessment

As part of the income assessment, you’ll need to provide proof of income. For employees, this usually means copies of your last three payslips, your latest P60 and copies of your last three bank statements.

If you’re self-employed, you will usually be asked to provide tax year overviews and two to three years of audited accounts and bank statements for the last three months for both business and personal bank accounts.

If your income involves other sources like part-time earnings, pensions, child support from a previous partner, or benefits, you’ll be required to provide proof of these as well.

Outgoings Assessment

Once your income is assessed, the next step will involve assessing your outgoings. Lenders must ensure your outgoings aren’t so high that a monthly loan repayment causes you financial hardship.

You’ll be required to provide details of how much you spend on bills each month. This can include your utilities like water or power, council tax, telephone charges, or any insurance policies you may have in place.

You’ll also need to provide information about any store cards, credit cards, car finance agreements, or personal loans and their outstanding balances. Any school fees or childcare costs will also be considered, and any maintenance payments you’re paying for children or an ex-spouse.

Credit Check

When you apply to take out a mortgage (or any other type of loan), lenders will look at your credit score. This will help them to determine how much risk is involved when lending to you. Are you a reliable borrower, or will you struggle to repay the debt?

Normally, a high credit score means you’re a low risk borrower. In this case, you’ll often be accepted for a mortgage, sometimes even with a better interest rate than someone with a lower credit score.

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Why is an Affordability Check Important?

The main aim of an affordability check is to ensure you don’t get into financial hardship because of the loan. Taking out a loan you can’t afford may force you to cut back on essential living costs to keep up with repayments. You may also miss repayments to the loan and end up with a defaulted account.

Responsible lenders must ensure you can repay the loan:

• On-time and in full.
• Without borrowing more money.
• Without any financial hardship.
• Without falling behind on your current or existing commitments.

What Happens When You Fail an Affordability Check?

Most lenders will not offer you a loan if the affordability check shows you can’t afford the requested loan amount. Depending on your circumstances, they may offer you smaller loan amounts with reduced repayments, but this isn’t always guaranteed.

Generally, borrowers fail affordability checks, and lenders deny their loan requests if they have other debts they’re struggling to manage. If you’ve failed affordability, check multiple times, it may be a sign that you need help with money, and you must decide whether you need to borrow more.

Can I Pass an Affordability Check with Bad Credit?

Potentially yes, creditworthiness is part of the affordability check. You can find lenders in the UK specializing in lending exclusively to borrowers with bad or poor credit scores.

Having bad credit is a broad term that can result from different reasons. It can include previous loan defaults, bankruptcy, or even making one late payment on a loan in the past. Even a non-existent credit history can affect your credit profile.

Thankfully, lenders specializing in advancing bad credit loans treat each borrower as an individual based on the current facts. They’ll consider facts like how you handle your finances now, your income, and whether you can afford monthly repayments instead of focusing on your credit score.

Finding such lenders can be a challenge, making it wise to work with some of the best credit brokers in the UK to access bad credit loans lenders.

Giving Wrong Information During an Affordability Check

You may be tempted to exaggerate your income or omit some expenses during the affordability check to increase the amount you can borrow or get accepted for a loan. However, this is a grave mistake.

You’ll likely end up making your situation worse by borrowing more than you can realistically afford. It’s vital to give accurate information to lenders when they’re checking affordability.

Giving false information on loan applications can have you flagged and cause problems with future loan applications. Some lenders use fraud prevention services that flag up discrepancies on previous loan applications.

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Affordability Checks Final Thoughts

While affordability checks can seem time-consuming and daunting, they’re worthwhile because they ensure you can comfortably repay the amount, you’re loaned to avoid financial difficulties.

To ensure a speedy process, have the required documentation ready before you apply. It’s worth it knowing how much you can realistically afford to borrow and repay without any problems.

Give Loanable a call today on 01925 988 055 and they will provide you with the best deals available to meet your circumstances and consider any credit history you may have. With their expert advice, they can guide you through the process and give you the knowledge and confidence it takes to acquire a secured loan that is right for you.

If you have read all the information on secured loans carefully and feel that you want to proceed with a secure loan, get in touch with one of Loanable’s secured loan experts by emailing hello@loanable.co.uk who can work with you to find the best deal for your needs and circumstances.

Instalment loans are an excellent option if you need quick cash and extra time to repay in instalments over several months or years.

In the past, qualifying for any type of loan with bad credit, including instalment loans, was an uphill task. Nowadays, it’s nothing more than a hiccup when you need financial help.

What Is An Instalment Loan?

An instalment loan bad credit is a personal loan designed for borrowers with a bad or poor credit score or no credit history.

A bad credit rating results from negative scores in your credit report due to various issues.

You may have failed to pay a previous loan in full, gone bankrupt, or defaulted on a loan.

You may even have made a late repayment on a past loan.

You can also be categorized as a bad credit borrower if you have no credit history because:

• You recently relocated to the UK and can’t transfer your credit history across borders.
• You’re a young adult whose yet to build any credit record.
• You’ve never borrowed or opened a bank account.

Although it doesn’t seem fair for lenders to hold this against you, they often do. Thankfully, many understanding lenders in the UK specialize in lending to borrowers with bad credit.

Instead of focusing on your past financial hurdles or lack of credit history, they consider your current income and how you handle your finances now to offer instalment loans with bad credit.

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How Does An Instalment Loan Bad Credit Work?

With an instalment loan bad credit, you borrow and get a fixed amount of money. You then repay the loan plus interest in regularly scheduled payments called instalments over a few months or years.

You pay back a portion of the principal amount plus a percentage of the interest on the loan in every instalment payment.

The regularly scheduled payments usually remain the same throughout the loan term and are often made monthly. Different factors will determine the amount of each scheduled payment, including the loan amount, length or term of the loan and the interest rate you’ll be charged.

An instalment loan bad credit will have a higher interest rate and more stringent terms than regular instalment loans. Lenders will charge higher rates to mitigate the risk of lending to bad credit borrowers. Others may cap the maximum amount you can borrow with bad credit.

Keep in mind that every lender uses their criteria for assessment, and some may view you more positively than others.

Related quick help guides: 

• Secured loans brokers.
• Secured loans for pensioners.
• Secured loans for self employed.
• Interest only secured loans.
• Can I get a secured loan on a buy to let property? 
• Secured business loans.

Features Of Instalment Loan Bad Credit

Flexible Loan Amount

An instalment loan bad credit features loan amounts that are easily tailored to suit your specific needs. They’re suitable for all kinds of needs, budgets and occasions. Although some lenders may restrict the amount you can borrow, it’ll still be higher than a short-term bad credit loan.

Flexible And Longer Repayment

Instalment loans bad credit are flexible, and you can choose a repayment period that makes it easy to repay the loan comfortably. You’re free to select a repayment schedule that fits your budget and personal circumstances.

Since you’ll be paying back in instalments, you get an extended period of 1 to 20 years, and you can decide on a term that is most affordable to you.

No Usage Restrictions

You can use an instalment loan bad credit without any limitations or restrictions. Common uses include:

• Home improvements like a new bathroom, kitchen, extensions, conversions, renovations, maintenance or repairs. Home improvement is a great way to reinvest in your property and improve its value.
• Debt consolidation, where you combine multiple debts into one for more straightforward repayments and management.
• Financing business needs like a cash injection for resources, stock, expansion, equipment or a new premises.
• Financing personal financial needs like buying land, a car, advancing your education, taking your family on holiday or turning your wedding dreams into reality.

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Getting Higher Limits And Better Rates

Lenders can place higher interest rates and lending limits on an instalment loan bad credit. However, you can reduce the level of risk involved for the lender and get better rates and limits through various actions. These include:

Offering Security

You can secure an instalment loan bad credit by pledging a valuable asset as collateral for repayment. It involves borrowing the instalment loan bad credit against an asset like your car, home, stock, bonds, jewellery, equipment, or other valuables.

The lender places a lien on the collateral, which gives them the right to seize it if you default. If you default, the lender can repossess, foreclose or seize the collateral and sell it to recoup the outstanding loan balance. The lender knows you’ll be motivated to repay to avoid losing your asset.

As such, it’s relatively easy to get approved for an instalment loan bad credit with security. You’ll be able to borrow more money with better rates and repayment terms than you’d otherwise get.

Incorporating A Guarantor

Incorporating a guarantor can open many borrowing doors for you if you’ve been struggling to get a loan because of bad credit. Having a guarantor involves co-signing the instalment loan bad credit with a responsible friend or relative who has an excellent financial standing and credit history.

The guarantor agrees to meet the loan repayments when you’re unable to pay, which reduces the risk for the lender. Incorporating a guarantor is suitable if you’ve found it challenging to access funding independently for any reason, including bad credit or low income.

When someone backs you up, the loan is effectively ‘guaranteed,’ allowing the lender to advance an instalment bad credit at higher limits and better rates. The better the guarantor’s financial position and credit rating, the better the rates and higher the limits lenders will offer you.

Managing An Instalment Loan with Bad Credit

An instalment loan bad credit will help you get the funds you need to meet any financial demands while benefiting your credit score provided you repay diligently.

Ensure you only borrow an amount you can afford to repay comfortably. Making repayments on time will reflect positively on your credit score. It will show lenders you’re a reliable borrower and enable you to qualify for better deals in the future.

It’s wise to ensure you have a reasonable monthly budget to avoid missing repayments. Avoid additional debts while repaying an instalment loan bad credit to avoid overstretching yourself and making it hard to repay.

Most lenders are understanding, and as soon as you realize you may miss a repayment, contact them to work out a better schedule and discuss your options.

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Instalment Loans for Bad Credit – How Can We Help?

There’s no doubt that secured loans are great for those with bad credit but as mentioned previously, taking out a secured loan is a major life decision that’s not to be taken lightly and nobody should have to make that choice alone!

Give Loanable a call today on 01925 988 055 and they will provide you with the best deals available to meet your circumstances and consider any credit history you may have. With their expert advice, they can guide you through the process and give you the knowledge and confidence it takes to acquire a secured loan that is right for you.

If you have read all the information on secured loans carefully and feel that you want to proceed with a secure loan, get in touch with one of Loanable’s secured loan experts by emailing hello@loanable.co.uk who can work with you to find the best deal for your needs and circumstances.