<\/i> Might demand collateral for the loan<\/li>\n<\/ul>\n<\/div><\/div><\/div><\/div><\/div><\/div>\nHow do bad credit loans work? Read our step-by-step guide<\/h2>\n
The bad credit loan application process works largely the same as any other loan application. However, if you have never applied for a loan before, or you simply want a refresher, be sure to check out the step-by-step guide outlined below.<\/p>\n
Step 1: Find a loan provider<\/h3>\n
First, you will want to find a bad credit loan provider that meets your individual needs. And you can start by scrolling down to the section below and reviewing the three providers that we have recommended.<\/p>\n
Step 2: Start the application<\/h3>\n
Once you have found a suitable lender, head over to their client registration page\/portal. In most cases, the application can be completed online or via your mobile phone in a matter of minutes.<\/p>\n
Step 3: Enter your personal information<\/h3>\n
At the next stage of the application process, you will be asked to enter some personal information. At this point ,you will need to provide your full name, home address, previous addresses, date of birth, national insurance number, telephone number, and email address.<\/p>\n
Step 4: Enter your financial information<\/h3>\n
After you have provided your personal information, the lender will then ask you some questions aimed at assessing your financial standing. This will initially include your employment status, how much you earn, how long you have been employed with the company, and how often you receive your salary. You will also need to stipulate whether you are a homeowner or renter as well as your current debt status.<\/p>\n
Step 5: Enter your bank account details<\/h3>\n
If your application is approved, your loan funds will be transferred to your UK bank account. As such, the lender will ask you to enter the name of your bank, account number, and sort code. These are also used to verify your identity and to prevent fraud.<\/p>\n
Step 6: Review the lender\u2019s decision and if applicable, loan offer<\/h3>\n
Once you have entered the above information, the lender will then verify the data against third-party sources \u2013 including its preferred credit rating agency. This usually takes no longer than 30-60 seconds, after which you will be informed whether or not your application was successful. In some cases, the lender might require supporting documentation surrounding your identity and\/or financial standing.![\"Loan](\"https:\/\/learnbonds.com\/uk\/wp-content\/uploads\/sites\/2\/2020\/01\/bigstock-loangraphic.jpg\")
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Nevertheless, if your application is approved on the spot, you will be able to review your loan offer. Known as a pre-approval offer, this will outline how much the lender is willing to lend you, and at what rate of interest. If you are happy with the offer, you can then proceed to the final stage of the application.<\/p>\n
Step 7: Sign the digital loan agreement<\/h3>\n
The final stage of the bad credit loan application will require you to sign the loan application form. As the entire process is completed online, you can sign the agreement digitally. In most cases, the lender will then forward the funds to your specified bank account within 48 hours.<\/p>\n
Criteria used to rank the best bad credit loan providers<\/strong><\/h2>\n\n- Lenders with the most competitive APR rates<\/li>\n
- Lenders that allow you to complete the entire application online<\/li>\n
- Lenders that are transparent on their fees<\/li>\n
- Lenders that consider loan application from borrowers with the lowest credit scores<\/li>\n
- Lenders that do not charge high late payment fees<\/li>\n<\/ul>\n
Reviewer\u2019s choice for bad credit loan providers<\/h2>\n\n
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![\"\"](\"https:\/\/learnbonds.com\/uk\/wp-content\/plugins\/in-content-provider\/Library\/assets\/images\/entypo_shield.svg\")
\n Reviewers Choice <\/div>\n
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Piggy Bank<\/div> <\/div>\n\n
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![\"\"](\"https:\/\/learnbonds.com\/uk\/wp-content\/uploads\/sites\/2\/2020\/02\/piggy-bank-loans.png\")
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Rating<\/div>\n
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Available Loan Amount<\/div>\n
\u00a3100 - \u00a31000<\/div>\n <\/div>\n
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Available Term Length<\/div>\n
7 days to 5 Months<\/div>\n <\/div>\n
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Representative APR<\/div>\n
1,255% up to 1698.1%<\/div>\n <\/div>\n
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\n Rating
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