A bad Credit score can incapacitate you from borrowing at attractive interest rates. It suggests your inability to adhere to the payment schedule, but sometimes it all happens due to unavoidable circumstances like falling sick in the hospital. A bitter part is that the record visible on your credit report will not drop off soon, and once you fall behind on payments, no matter what, you start being haunted by lenders, debt collection agencies, and court summons.

If your credit file is not stellar, it is all the harder to convince a lender to Loan you at the most affordable interest rates. Some lenders will be so sceptical about your intent that they will straightaway turn you down, quite a petrifying situation for those who need money for emergency reasons.

A lot of lenders are out there who could lend you money despite a poor credit rating, but since each lender follows their own lending criteria, you can pick the one that best fits your budget. If you are looking to qualify for a Bad Credit Loan at the most competitive interest rates, 1oneFinance is the best direct lender to turn to.

Here is how this lender differs from the others and how you can easily get bad credit loans at lower interest rates.

1oneFinance considers your overall financial situation

Most lenders emphasise a credit score when it comes to loaning you, and they should; after all, it is part of an affordability check. A lender wants to have a complete view of your past payment behaviour. Strong income sources cannot guarantee that you will adhere to payments.

1oneFinancew will also look at your credit rating. Needless to say, it helps determine the interest rates and associated fees, but this is not the be-all and end-all. We will notify you before running a hard credit check, and if we find that your credit score is not stellar, we will call you to know the reasons.

Sometimes borrowers miss payments because their financial life is turned upside down. For instance, you are made redundant, fall sick, or suffer from a bereavement loss. There could be endless reasons for you to fail to stick to the payments. We will try to know the reason instead of making any decision based on our surmise.

In addition, we will also look at your income sources. Just because your past payment record has been stellar, it does not mean that you will come through this time too. We will see your monthly expenses, the number of dependents, the amount of money you already owe and how much of it is to be paid off in full, and above all, whether you will have left with enough money to pay down the instalment of bad credit loan with no guarantor and no broker.

You will get the nod until we are confident about your repaying capacity. Unlike other lenders, we also check whether your budget has the scope for emergency expenses.

When is a credit score not this important?

A credit score is intrinsic when it comes to loaning you. Whether you need a small sum or a large sum, no lender can lend you money without an affordability check. However, sometimes it is not necessary to check your credit rating.

When you apply for a payday loan or a no-credit-check-loan, a lender will make a decision after perusing your income statement only. It is understood that your credit report is not up to snuff. Loans with no credit check and payday loans can be expensive. They carry very high-interest rates.

The size of these loans is not more than £700. If you want to borrow a larger sum, no lender will approve your application without a hard credit check. However, we will look at your credit report when you apply for a small loan like a payday or emergency loan from 1oneFinance.

Though you are borrowing a smaller sum, no lender is permitted to give your application the green light without running a credit check. Therefore, it is not possible for us to approve your loan without checking your credit history.

Since your credit score is bad and you would not want to have hard credit inquiries to protect your credit rating, we will run a soft credit check. This helps us know about your past payment behaviour without showing up any hard inquiries on your credit report.

How can you get a loan at affordable interest rates?

Even though we can provide you with a bad credit loan at a lower interest rate than other mainstream lenders, the loan is still expensive. You should always try to have a good credit score to avail yourself of the most attractive interest rates. Here is how you can do it:

• Create a budget every month so you know how much goes out.
• Fine-tune your budget so it works for you.
• Whittle down your discretionary expenses to retain as much money as possible.
• Have an emergency cushion to avoid rushing to lenders to borrow money.
• Do not max out your credit card. Keep the utilisation ratio below 30%.
• The debt-to-income ratio should be up to 25%.
• Pay your bills, debts, rent, etc on time.

The final word:

1oneFinance can help you get a bad credit loan at a lower interest rate because we look at your overall financial situation. Even if you borrow a smaller sum, we will peruse your credit report to make a lending decision. However, in this case, we will make soft inquiries. We will not sign off on it if we find that you cannot afford to pay it back.

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