When you have a poor credit rating, it’s understandable if you assume that you’ll be unable to borrow £1,000 with a short-term loan. So what options are open to you if you receive an unexpected bill or you’ve been caught short with your finances at the end of the month? Where could you find the money you need?
Little Loans provide a streamlined, easy-to-use application process designed to put you in touch with lenders who are more likely to offer you a £1,000 loan. That’s even if you have a bad credit rating.
If your application is approved, you could even find the money in your bank account within minutes*.
Learn more about £1,000 loans and bad credit below:
What exactly is a bad credit loan?
A bad credit loan is a type of loan offered to someone whose credit history may not be perfect.
Lenders who offer bad credit loans understand that there is more risk of the loans they make to borrowers not being paid back. Because of this, the interest rates on bad credit loans are often higher.
However, compared to a few years ago when lenders would rarely offer a loan to someone with bad credit, there are now hundreds of lenders and brokers happy to work with borrowers who may have had one or two minor financial issues in the past.
In fact, Little Loans has a panel of over 40 lenders, many of whom specialise in working with applicants with bad credit. Additionally, each lender on the Little Loans panel is authorised and regulated by the Financial Conduct Authority (FCA).
Little Loans can put you in contact with lenders who may be happy to lend you £1,000 even if you have a bad credit rating.
Bad credit lenders also take into account your current financial situation when they're making their decision. Although you may have had problems in the past, if the information you provide on your application suggests that the loan you want is affordable to you now, you may have a good chance of being approved.
But if you're unfamiliar with the loans process and where to find loan agreements that are competitive and affordable for you, the options available can be confusing.
However, we have tried to make the process as simple as possible. Simply fill out the application form on our website and, if one of our lenders give us a positive response after they've run a soft credit check on you, we'll redirect you to their website. When you're there, answer the questions they have for you and, within seconds, following a hard credit search, they''ll either come back to you with a loan offer or they'll turn down your request.
Once you've submitted your information on our partner lender's website and you have agreed to their offer (subject to eligibility), your loan could be sent to your bank account within minutes*.
All potential borrowers need to complete our application form where you’ll share with us some of your financial and personal information.
Once you have told us what we need to know, Little Loans will then send your information to a selection of the lenders on our panel likely to approve your request for your £1,000 loan based on the information you've given us.
The lenders we contact will then conduct a soft credit search on your credit file and they'll then get back in touch almost straight away with their responses. Please remember that a soft credit search does not affect your credit score and that it is visible to you only.
Following the soft search, a lender may give us a positive preliminary response. If this is the case, we will then redirect you to the lender's website to finish up your loan application. When you're at their website, you'll be asked by the lender to complete their application form. It's only when you've submitted your information on the lender's website that a hard credit check will be conducted to determine whether your loan will be approved or not.
If you are approved, your lender will present you with a loan offer including the key information you need to know to make the right decision for you. The type of information you'll see will cover interest rates, the repayment dates of your loan, and many other factors so that you know everything you need to know before deciding whether an offer is right for you.
Once you read and agreed to the terms and conditions of your loan, £1,000 could be in your bank account within minutes*.
To be considered for a £1,000 cash loan, you need to:
Each lender also has a minimum income requirement for the borrower that they use to decide whether they can offer you a loan or not - if you earn less than £750 a month, you should not apply for a bad credit loan.
Generally, bad credit loans have higher interest rates than standard loans that you might get from your bank.
The reason for this is that more bad credit loans go into default compared with the standard loans typically offered by the high street banks. When a loan defaults, the borrower stops making the repayments meaning that the lender makes a loss on the loan. Typically lenders who offer bad credit loans charge a higher rate of interest to borrowers due to the higher risk associated with this type of product.
There are no set restrictions on what you can use the loan for. Generally, they are used to pay an unexpected bill, car repairs or fund a big purchase. Just keep in mind that borrowing money should not put you or your family in further financial hardship.
To apply for a £1,000 loan through Little Loans, please click here.
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