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How To Get Loans With A Poor Credit Score?

Being short on money when there are still a few weeks until you get your paycheck can put you in a difficult position, especially if there are medical or utility bills that need to be urgently paid. While most banks do offer payday advances, these often come with a number of hidden fees that can add up to 25% to the sum that you have to return, in the end.

It is also important to mention that borrowing money from banks usually requires taking part in multiple meetings that are required to determine if you are eligible or not for the loan. The process can get even more difficult if you have a poor credit score that limits the amount of money that you are allowed to borrow.

If you need a small loan and do not have the time required to deal with the bank’s bureaucracy, or if you have a poor credit score that would prevent you from borrowing money, there is always the possibility of using an online service to get up to 5000 pounds.

Use an online service in order to get fast loans

There are currently dozens of online services that enable you to request limited loans, without having to pass a credit score check or to go to meetings with bank representatives. As the name implies, the submission and approval processes are done completely online, and you will not be required to physically send in any documents.

You may also download smartphone apps that are offered by the companies that provide online money-lending services. These are designed to help guide you through the entire process and ensure that you always know what you have to pay and when the next monthly installment is due.

Unlike banks, getting loans online also offers more flexibility, as you will have the possibility to transfer the money to whatever bank you prefer. Furthermore, some platforms will even give you the option to transfer the funds to other services such as PayPal.

This having been said, online money-lending platforms also have fewer restrictions when it comes to who is eligible for a loan and require fewer verifications before approving a transaction.

Fast approval process and transfers

Borrowing money using an online service usually takes considerably less than if you were to go to a bank. This is due to the fact that these platforms are designed specifically for this purpose and the approval process is streamlined for maximum efficiency.

In most cases, once you submit the information that is required to get a loan, the approval process should take less than 24 hours. Once your request has been accepted, the money will be transferred to your chosen account in a matter of seconds.

The time required to review your request may take longer if you want to borrow a large sum of money and return it over the course of more than 24 months. Even in this particular case, the entire process should not take more than 48 hours.

You do not have to pass a credit check

One of the main advantages of getting an online loan is the fact that most platforms will not check your credit score. While you may be required to submit it, in most cases it will not play a role in the approval of your request.

This having been said, you must have a stable source of income in order to prove that you will be able to return the money that you borrow. Each platform will specify the type of proof that you will have to submit as part of your loan request.

In addition, most platforms do not require a guarantor if you borrow money for a period of fewer than 36 months, making it easy to get the financial help that you need regardless of your current status.

Use the app to make things easier

The majority of online money-lending services also offer smartphone and tablet apps that can be used in order to request a loan and keep track of your monthly payments. These can be installed on both Android, as well as iOS devices, and are free to download and use.

Once you create an account and submit all the information that is required to borrow money, the app will store these personal details and automatically use them in the future if you need another loan. The apps also contain detailed information with regard to the fees and taxes that you must pay to receive a loan. If you own multiple smart devices, the apps will also allow you to synchronize all the information across all of them.

Overall, getting loans using an online service such as Boutell.co.uk is often faster and easier than it would be if you were to go to a bank, especially if you have a poor credit score that would limit your ability to borrow money.

5 Easy Ways to Improve Your Credit Score and Get Lower Interest Rates on Your Loans

Your credit score is extremely important when it comes to getting great offers from banks and accessing loans with very small monthly interest rates. This value affects every loan, mortgage, and deal that you make with companies who report their financial activities to any of the main credit reference agencies in the United Kingdom.

This having been said, one of the most important things to keep in mind when it comes to credit score is the fact that you must build it up over time. You cannot buy extra points or improve its status in a short amount of time. Those who want to have a great score and be able to access great loan offers and mortgages will have to have a healthy financial life.

How to improve your credit score?

Here is what this means:

  • Limit your use of credit applications

There are thousands of credit applications that compete in order to bring you the most attractive offers. Unfortunately, every time you take advantage of their services, you damage your credit score. This is because these transactions are marked up in your permanent financial records.

When a lender considers if you should receive a loan or not, he will come across the times you use credit and conclude that you need it in order to pay for your daily and weekly expenses. This will lower their trust in your ability to effectively use the funds that you borrow from them.

If you are in a difficult financial position and need to use credit, try to space the applications out as much as possible. A good rule of thumb is to apply for a single one every 6 months.

  • Close all accounts that you do not actively use

By closing all the accounts that you no longer use you show lenders that you do not need to have a lot of credit for day-to-day operations. This means giving up all the credit cards that you do not use, regardless of how good the offers behind them may be.

Only keep one or two credit cards and try to use them sparingly. If you ever have to use them, try to utilize the same one every time, so that the records will show that the other one is dormant.

  • Stay clear of delinquent or defaulted accounts

Delinquent accounts appear when you are regularly late with your payments. The defaulted ones are when you miss several payments and the bank ceases communication with you as a result.

Both of these are huge red flags for any creditor and having even one of them can seriously damage your credit score up to the point where some lenders may restrict you from certain services permanently. These can be “repaired” by talking to the bank and paying any outstanding debts that you may have but they will leave permanent marks on your financial records.

  • Never borrow more money than you can afford

Going into debt can lead to County Court Judgements and even bankruptcy. These will signal lenders that you are unable to make reasonable decisions when it comes to how much money you loan or how you use it. Generally speaking, issues such as these can remain on your financial records for up to 6 years, during which they will keep your credit score from improving.

  • Make sure that you are not a victim of fraud

Check your financial records periodically and make sure that there is no suspicious activity that may affect your credit score. If you owe large amounts of money without knowing where the debt came from or receive news of applications that you did not make, you may be a victim of fraud. Report this activity to the authorities and the bank in order to protect yourself from their consequences. Furthermore, work with your bank in order to find better ways to secure your accounts.

Keep in mind that if you can prove that your credit score has deteriorated as a result of you being a victim of fraud, your lenders will be able to repair the damage and prevent the issue from occurring again.

This does not put a permanent mark on your financial records, however, it can have a serious impact on the short term, especially if you are not aware of it.

Conclusion

Follow the tips that we’ve presented above and pay attention to your financial activity. Try to eliminate all the accounts that you no longer use or need and always go to the bank or the lenders if you detect any sort of suspicious activity. For the most part, using common sense when it comes to credit applications and staying out of trouble should be enough to keep your credit score growing.