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Borrow Money

Need to borrow between £100 and £5,000 over three to thirty-six months? There's never been so much choice for borrowers applying for a loan but what if you've got a poor credit rating?

On this page, we look at the options available to you if you need to borrow money in a hurry.

How can you borrow money if you have bad credit?

For all lenders, your credit rating is particularly important. However, there are around 80 lenders in the UK who specialise in working with people:

  • whose credit history may not be perfect but
  • whose current personal and financial circumstances strongly indicate that they can afford to service additional borrowing.

How can I borrow money fast?

You can approach bad credit lenders direct or via a broker if you wish to apply for a loan.

Where can I borrow money?

In England and across the rest of the UK, all registered lenders (including fast same day lenders) are authorised and regulated by the Financial Conduct Authority.

What is the cheapest way to borrow money?

There are a number of different ways for you to borrow money including:

  • personal bad credit short term loans
  • guarantor loans
  • from friends and family or from your boss
  • the funds available on your credit card

Please make sure that, when you're considering the options open to you for borrowing money, that you choose the option which is the most affordable to you.

Can I borrow money from my bank?

Banks and building societies do lend money to individuals however they tend to turn away applications from borrowers with poor credit ratings - even borrowers who bank with them.

How much will a loan cost me?

The cost of your loan varies and is affected by a number of different factors including:

  • your credit rating and your current financial situation
  • how much you want to borrow
  • time requested to repay the loan

The interest rate you're charged will reflect the level of risk a finance company perceives in agreeing to lend you money. The rate offered will be fixed and it may be the same as the representative APR shown on the lender's site - occasionally however, the rate offered may be lower or higher than the APR, depending on your personalised offer and your circumstances.

You may be charged additional fees if you're late in making a repayment.

Please only borrow what you need. If you have savings which you can dip into, please consider using those savings to reduce the amount of money you ask to borrow.

Borrowing money online with Little Loans

You can apply to borrow the money you need through Little Loans - the we work with offer a wide range of different bad credit loan products.

Loans comparison - working out what's best for you

It's tough to compare loans – loan comparison is not an exact science. Why is that? It's because every finance company in the market sets their own criteria on:

  • the types of borrowers they’re happy to lend to and
  • the size of the loans they like to make.

When working out which loan to take, the place to start is with understanding what works best for you. Ask yourself:

  • Is this really an emergency? In other words, do you really need the money, or can you wait until payday?
  • Can I repay the loan comfortably?
  • Will I easily be able to meet my other financial commitments with repayments on my loan now coming out of my account every month?
  • Am I borrowing just the amount of money I actually need? Remember that you'll be paying interest on every pound you do borrow so make sure you only ask for the amount of money you require.

What information do lenders need about me?

Any offer of a loan made to you by a lender is:

  • subject to status,
  • based upon the information you provide them with,
  • based on a credit check.

What's on your credit report is very important to finance companies in general, but bad credit lenders, for example, might also be interested in and take into consideration your current personal and financial circumstances.

In most cases, you won't need to send your lender any documentation or identification. The entire process of applying is all online.

In addition to providing your bank account details, you'll need to provide information about your monthly income, what you spend every month, your address history and your source of income.

Approaching a lender to borrow money online

You may want to approach a direct lender - most will accept direct approaches from potential borrowers. If you do apply directly though, remember that you will only be offered that lender's products.

Lenders don't generally publish details of the profiles of borrowers they like to work with on their website, so you’ll never know what your potential chances of approval are.

Every time you make a full application to a lender, they also run a hard credit search on you. That's really important and we'll let you know why below.

Approaching a broker to borrow money online

Little Loans, as an FCA authorised and regulated broker, works with a wide range of lenders offering different types of financial products to different types of customers.

Whenever we start working with a new lender, we ask them the following questions:

  • "tell us about your ideal type of borrower" (minimum amount a borrower is paid, type of work they do, how often they've moved houses in recent years, monthly outgoings, and so on)
  • "tell us about the loans you specialise in" (short term loans, guarantor loans, minimum loan amounts, maximum loan amounts, length of time you allow borrowers to pay back, and so on)

What they tell us is really important. When you fill out the application form on our website, we compare all the details you've given us with the details that each of the lenders on our panel told us about their ideal borrower.

Within a few seconds, we're then able to match you to the lenders most likely to approve a request for a loan from you.

Lender versus broker

Earlier, we mentioned that hard searches were really important. Why?

Whenever a lender runs a hard search on you, they can see the searches other finance companies have run on you as well. And the more searches that have been run on you lately, the more a finance company might think that you're struggling with cash and become a lot less willing to lend you money. Too many hard searches may also have an adverse effect on your credit score.

Because lenders don't really share the type of customer they're looking for on their websites, how does potential borrower work out whether this is the right lender for them? The answer is that they can’t, and they risk negatively affecting their credit score looking for the right finance company by making application after application.

With a broker like Little Loans, we only contact the lenders most likely to approve your request and, if you do make a full application on the website of the lender we redirect you to, that's only one hard credit search carried out against your name.

Using a broker saves time and it can help protect your credit score from damage.

What happens if I am made an offer?

If your request to borrow money is approved, you'll be shown:

  • your schedule of repayments – that’s when the lender collects money from your account and for how much,
  • the interest rate you're being charged to borrow money
  • any additional charges – that is if you miss a repayment or you want to pay the loan off in full early

If you like the offer that you're made and you're certain you can repay the loan, please then take a few moments to read and understand the terms and conditions of your credit agreement - remember, you'll be legally bound by them if you go ahead.

If you choose to proceed, agree to the terms and conditions (save a copy for your own records) and, within minutes*, the lender money to your bank account.

I am in so much debt - should I borrow more money?

If you are worried about the level of debt you are in and your ability to manage it, you should not make an application to borrow money online. You may benefit from contacting one of the debt charities in the UK offering free advice and support to borrowers – like StepChange and Money Advice Service, for example.

Please remember that any credit accounts you currently have open may be repayable on demand if you miss multiple repayment dates. If you are concerned about your ability to make repayments on your current credit accounts, please refrain from making a new application to borrow money online.

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Representative Example: Amount of credit: £1200 for 18 months at £90.46 per month. Total amount repayable of £1628.28. Interest: £428.28. Interest rate: 49.9% pa (variable). 49.9% APR Representative. We’re a fully regulated and authorised credit broker and not a lender