A bad credit score can make you unfit for availing loan from any legal source. Anyone applying for a loan should have 600 as their minimum credit score and people with less credit score will not get a loan from any sources. Only certain money lending services will offer loans for people with bad credit scores.
LoanPig is one of the many sources that offer payday loans. The available time duration to repay the amount borrowed from this bad credit loans direct lender UK service is 61 days. The maximum time duration available for repaying the money is not more than 12 months. You can check their webpage to understand how they choose their borrowers.
Finding a Loan with a Bad Credit Score
A bad credit score means you are black-marked not to avail loans from any sources. The companies that agree to offer money to such borrowers will charge a higher rate of interest for the return. The payment might be for the long run, but you can expect money to borrow when needed the most.
Pros of Bad Credit Score Loans
Here are some pros of choosing bad credit score loans.
- You will have many options to make a choice
When you look at the market, you will notice that there are many options available for you in finding a loan for a bad credit score. Look through the available options and make a choice.
- Repay the Money Accordingly
The available time to return the amount is from few months to a year. The lender will let you know about the time available to repay the debt.
- Increase your Credit Score
Making a repayment on time can successfully boost your credit score. This can be the best way of falling into the borderline of a good credit score.
Here are the cons of bad credit scores.
- The Borrowing Cost is High
The rate of interest in case of a bad credit score loan is quite high when compared to a regular loan. If you qualify for a bad credit loan, then you will have to pay a high rate of interest.
- The chances of Getting Trapped in Debt Are Quite High
When you take a loan with a higher rate of interest, you will automatically get trapped in the world of debt. The time duration to return the amount will be longer and in turn, you will be falling into the cycle of debts.
- Lenders can be Predators
The lenders will charge high fees while offering you the amount, because they know very well that you need money and will not back down for the loan.
- You are required to give a collateral
While offering you the amount for a certain rate of interest, your money lender might require you to offer anything as collateral. If you accidentally fall behind in paying the debts, then you might lose your collateral.
Bad credit loans are for such people that cannot get a loan from any other sources such as societies, banks, and so on. Such people can get the loan from secondary sources that offer loans especially for people with bad credit scores.