Loans

Online Loans and Low Credit Score

Online Loans and Low Credit Score

If you need to borrow money with a low credit score, you may have the option of taking out an online loan. Online loans are offered by both financial institutions and personal lenders. They can be a good way to find a lender who doesn’t require a good credit score, or any credit score at all.

Types of Loans for People with Low Credit Scores

There are four main types of online loans available for people with a low credit score or no credit.

  • Payday loans: Payday loans allow you to borrow a small amount for a short period of time and pay back in a single lump sum. For approval, lenders usually depend on your monthly income instead of your credit score. In the UK, you can borrow up to £1,000 with a maximum interest of £24 per month. Usually, you have to pay it back within one to four months
  • Logbook Loans: Logbook loans are another form of high interest loan which is secured by your car or other vehicle. You can borrow up to 50% of the price of your vehicle. It also has a longer repayment time of around 78 weeks.
  • Personal Installment Loans: This is a loan designed to be paid back in small installments over a period of more than one year. Mostly unsecured, this one of the most affordable loans for people with a low credit score or no credit.
  • Peer-to-Peer Loan: Also known as a P2P loan, this is an online loan where you borrow money from private lenders instead of financial institutions. It can be obtained from specialized websites with many different lenders.

Our advertising partners offer repayment duration of 12 to 120 months. I.e. 8000 in 48 monthly payments to the 4.50% rate. amount tot. due: 8,756.64; APR max: 10:50%

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