Representative example of the total cost of the loan, including all applicable fees – Typical loan size of £25,000 over 120 months = £275.82 pm, 4.35% Variable APR – 6% (including £1800 in interest) total repayable £33,098
Maximum Annual Percentage Rate (APR) – approx. 24% (lender starting rate 18%) – Typical Apr will be around 8%
*We are not a lender, we provide a free credit brokering service. We will never charge you a fee for using our application.
Simple Application Process
Safe & Secure
Absolutely No Fees
Fully Legitimate and FCA Registered
Warning: Late repayments can cause you serious money problems. For help, go to moneyadviceservice.org.uk
Loans subject to status. Over 18s only. Minimum loan amount may apply.
Rates from 4.5% APRC to 65.2% APRC are available – the highest rate is for customers with severe credit problems. Loans available from 1-25 years. TYPICAL 10.9% APRC variable
What You Need To Know About Loans Based On Affordability
- All lenders we work with are FCA registered and legitimate.
- Loans based on affordability can be provided to individuals with bad credit.
- Many options are available for short and long term loans.
Applying for a loan when you have a bad credit sounds impossible, especially when you’re trying to get it from banks or other traditional lending establishments. These facilities may be the primary sources of the loan but their prerequisites include a good credit rating. Even when you have a high and stable source of income, the lender will base on your credit history. Meanwhile, those who have never borrowed before will also have a hard time acquiring a loan.
Luckily, there are lenders – mostly private ones – who are offering a helping hand to anyone who can afford it. This means that even if you have a record of late or missed payments, bankruptcy, defaults, arrears, or CCJs or have no credit history at all, you can get loans based on affordability. As the name suggests, this is provided to anyone who is capable of repaying the loan without any hassle. It can be used to settle utility bills before its due, purchase appliance or groceries, repair a broken car, or as an extra fund. This is good news for anyone who is constantly rejected; not only will you have the money you need, you can also improve your credit rating as long as you will settle the loan on time.
Your credit score is not much of an issue with loans based on affordability; as long as you have sufficient income to cover the amount you borrowed, the lender will likely approve your loan application. You can get it unsecured – meaning no collateral is involved. This is ideal for tenants who cannot pledge any property or homeowners who don’t want to put any of their assets at risk. The catch, however, is the expensive interest rates. By nature, the loan is risky to the lender’s business and the only way to compensate it is to apply exorbitant rates.
How To Get Unsecured Loans Based On Affordability
When you have a reliable income but you cannot pledge any security against the loan, you can always rely on loans based on affordability. All you have to do is start a simple self-assessment and ask these questions: “How much do I really need?” “Can I afford the monthly repayments?” Once you come up with the answers, it’s time to look for the right lender. Remember, no matter how desperate you are, take enough time finding the best deal from a legitimate lender. There are many potential loan providers online and all you have to do is compare each while considering their terms, rates, and customer service.
When getting loans based on affordability, the lender will ask a few personal and financial details that you should answer with all honesty. Lenders have a way to find out if you’re providing accurate details or not. These particular will validate your source of income and these include:
- Your Source Of Earnings: job employment or self-employment, unemployment compensation or benefits, disability benefits, rental income, alimony, and pension.
- Job Details: employer’s name, employer’s contact number and email address, gross monthly salary, length of employment, and payroll frequency.
Improving Credit Score Through Loans Based On Affordability
Whether you’re borrowing for the first time or not, you probably know why the credit score is important. Lenders use this to determine your creditworthiness; the lower the credit score, the slimmer the chance of getting the loan; the better the credit remark, the higher the chance of getting approved. So if you’re credit report is likely to end up rejected, you need to find a lender who will focus on your potential as a borrower, not on what you’ve done in the past.
So if you want to please those who provide loans based on affordability, you have to take note of these things: your bank details, copy or proof of high income, and a confirmed employment with its name, address, and contact number. You also need to meet the lender’s basic criteria such as the right age (18 years old and above), UK residency, and bank account.
How the loan works is not as complicated as the others; in fact, the name itself suggests how it will be acquired. You provide enough proof of income so the lender knows that you’re going to repay the monthly repayments without struggling. This means that your income is enough to avoid missed or late payments. Your debt-to-income ratio is crucial when applying for loans based on affordability. It is used to evaluate your application, determining whether the money or not. It refers to the monthly income and monthly repayment that takes place in your cash flow; the higher the debt or expenses, the lower the chance of getting approved. So if you want to secure the loan, you can try to minimize the monthly repayments, which includes the principal amount, interest rate, and repayment term.
- Principal Amount
If you know that your income is barely enough or if your expenses are too high and you need quick cash, limit the amount you want to borrow. A smaller amount is easier to handle, therefore increasing the chance of getting approved.
- Interest Rate
The interest is the primary factor that affects the overall amount of the loan. Those who have a bad credit or have no credit usually end up repaying an expensive interest. Meanwhile, those who have a pleasant credit remark are charged with minimal interest.
- Repayment Term
Basically, it talks about the length of the loan’s term or the months or years that will cover the repayments. The monthly installment is higher when the term of the loan is shorter, the lower the monthly installment means otherwise.
This is a win-win situation for you and the loan provider. You have enough budget to get back on track while improving your credit score at the same time while the lender continues to make his business stable. Nevertheless, it’s important to show a strong evidence of income. After all, your chance of getting approved lies on your ability. So before you get loans based on affordability, prepare a strong employment record and verified source of income.
Affordability Based Loan FAQs
Am I guaranteed to be approved for loans based on affordability?
The decision regarding whether to approve your loan application or not will rest solely with the lenders we work with. However, they will inform you if your application has been denied for any reason.
How long will I have to repay my loan?
In most cases, this will depend on the amount of money you need to borrow. However, loan repayment terms can vary between 28 days and 25 years. It’s important to remember that the longer you take to repay your loan, the more interest will be charged.
What interest rate will I pay?
The interest rate you pay will depend on factors such as the amount of time you take to repay your loan and the amount of money you apply to borrow. Information regarding the interest you will pay will be discussed with you at the time of application.
If I am approved for a loan and I change my mind, do I still have to accept the funds?
Absolutely not! If you decide to use another option to obtain the funds you need, you will be under no obligation to accept the offer provided to you.
Exactly who will be providing me with the funds I apply for?
We work with many different lenders and one of them will be responsible for providing you with the funds if your loan application is approved.
If I obtain additional funds, can they be used to repay my loan earlier than planned?
Yes! Although repayment terms are set at the time you apply for your loan, you will be allowed to repay it early if circumstances allow you to do so.
It is our ultimate goal to make your lending experience as easy as possible.
If you have any queries feel free to contact our dedicated team of experts today.
Competitive Examples From Other Companies
Representative Example: Amount of credit: £300.00. Term: 91 days. Interest: £155.35. 3 monthly payments of £152.63.
Total Repayable: £455.35. Interest Rate: 292% pa (fixed) Representative APR: 1264%.
3 most recent personal loan reviews
Simply amazing! Quick, professional and understanding. Great agents over the phone. Thanks for helping me again!
Review posted by Shah Azad, Brighton
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The best and more serious loan company, Moneysupermarket without a doubt! Fantastic customer services and great communication , lots of good advice in how to manage your loan and very reasonable rates in accordance to your possibilities. Perfect for that extra pending project without making a big dent to your monthly income. Highly recommended!
Review posted by Maria Bidell, Manchester
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This has proven to be an excellent service. Quick, efficient and trusting.I would definitely recommend Giffgaff loans to friends and family in the future.
Review posted by Donna Blanford, Glasgow
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