If you’re reading this, you probably require some fast cash. Maybe you found an amazing holiday deal and you need some extra money to book it before it’s too late. Maybe you want to make some home improvements seeing as we’re spending more time than ever at home! No matter the reason, if you’ve decided that a short-term loan is an affordable solution to your temporary financial shortfall, the ever-increasing lending options can overwhelm you. So let us help you understand your options. We look at a common question – can i get a peer to peer loan with bad credit?
Peer to peer loans are a type of short-term unsecured loans in which you borrow money from another person. Someone that is willing to lend to you. To apply for this type of loan you need to join a peer-to-peer website or platform. The Financial Conduct Authority (FCA) regulates the companies managing these types of websites. They act as intermediaries between borrowers and lenders.
In short, maybe. But it’s important to factor in a few things:
Bad credit loans is a phrase many use to describe a type of unsecured credit aimed at people with bad credit files. This is whether that is because of a poor credit history or a thin one. This type of loan would give people with a bad credit rating a chance to prove themselves and rebuild their credit score. you can do this little by little by making repayments in full and on time.
At cashasap.co.uk we have two types of short-term loans that offer you different repayment options depending on what your situation is:
Multi month loans are those types of loans that you repay in instalments. This means that you will likely pay more than if you repaid it in one lump sum, as you borrow the money for a longer period of time, but the repayments might be more affordable as they’re spread out over a number of months.
A payday loan is a loan that you repay on a specific agreed date. This will usually be on your next payday but can be any date that is convenient to you.
So, if you’ve decided that taking out a loan is affordable, which one suits you better?
So after considering all these facts, it’s clear to see that peer-to-peer loans are a good option if you have a good credit rating, as you could get big loans with better interest rates than those offered by banks. But that changes when you have a bad credit score, as you get charged a higher interest rate and it’s unlikely you will get accepted by one of the leading peer-to-peer platforms. If that is your case, you might want to opt for a bad credit loan, as these are specially tailored for people with lower credit ratings.
However, please bear in mind that taking out a loan needs to be an informed and responsible decision and you should only apply if you really need it and know that you can make your repayments in full and on time, as failing to meet your loan repayments can cause you serious money problems.