Representative Example: Rates from 49.9% APR to max 1333% APR. Minimum Loan Length is 1 month. Maximum Loan Length is 36 months. Representative Example: £250 borrowed for 30 days. Total amount repayable is £310.00. Interest charged is £60.00, annual interest rate of 292% (fixed). Representative 669.35% APR (variable).
Here at Boutell, we realise that a lot of our customers have a less than perfect credit score. The inability to repay a small loan a few years ago, a couple of missed payments here and there, unauthorised overdrafts etc all add up and can make things difficult when trying to obtain credit in the future. We understand this, we want to help, and we believe a loan for bad credit is the perfect option to get you back on your feet.
As the name suggests, loans of this nature are tailored to people with a bad credit history and often eligibility is determined by reviewing factors outside of your traditional credit score or report. This makes it much easier to obtain credit and in addition to the cash influx, it also affords a way to help you improve your credit score along the way as a result making regular monthly payments (on time) and ultimately the repayment of your loan in full. Showing that you’re able and willing to take on debt and repay it is the key to building a better credit score which will enable access to a wider range of financial services in future. Often on more favourable terms.
Representative Example: Rates from 49.9% APR to max 1333% APR. Minimum Loan Length is 1 month. Maximum Loan Length is 36 months. Representative Example: £250 borrowed for 30 days. Total amount repayable is £310.00. Interest charged is £60.00, annual interest rate of 292% (fixed). Representative 669.35% APR (variable).
A bad credit score or report is often the culmination of a variety of factors and issues over time. A typical credit record contains history from the previous 6 years. So, everything that has influenced or affected your credit over that period is considered. Good and bad, positive, and negative, it’s all taken into account, calculated, and totalled into a representative value what we refer to as your credit score.
There are numerous factors that can negatively impact your credit score, some more so than others. For example: –
If you’ve encountered or suffered from any of the above over the past 6 years, there is a chance that your credit score will have been lowered as a result. However, these negative indicators are offset by any positive influence on your score such as making repayments, lowering credit exposure, or clearing credit balances entirely.
Whilst it’s clear from the above that there are a lot of factors and considerations when it comes to determining your creditworthiness, there are also a lot of myths and falsehoods that have no bearing on your credit score whatsoever. Some of these common misconceptions include: –
Previous Tenants/Occupants: This is a common myth where an applicant assumes that the reason that they have been denied credit is because of a history of bad credit at the property they currently reside at. This is entirely false, any credit decision would be based on your own personal circumstances, and nothing to do with your address.
Historic Credit Issues: As covered above, your credit report typically holds information on your financial affairs from the previous 6 years only. If you suffered from credit related issues a decade prior, it’s highly unlikely to impact your ability to obtain credit today in the general sense. Perhaps if you were trying to obtain a loan from the same bank or lender, you’d potentially run into issues, however.
Friends/Family/People You Live With: All lenders will only consider you personally or anyone you’re linked to financially such as your partner who you may share a joint bank account. The financial histories of your friends, relatives and other people living at your address will not influence your credit score either way.
Frequently Checking Your Score/Report: Frequently checking your own credit report is considered by some to have a negative impact on your score. This is simply not the case and in fact, keeping track of your credit report and addressing any inconsistencies is considered good financial management. Your credit score can only be lowered if a third party such as a lender checks your report via what is known as a hard search which we’ll cover below.
Improving your credit score and maintaining a good score in practice are essentially one of the same. If you have little or no credit history due to never having a loan, overdraft, credit card or mortgage then you’ll also struggle to get credit simply because there is no record of you ever servicing a debt so any lender would be unable to determine how much of a risk you are. It’s a common misconception that a lender is more likely to approve you for a loan because you don’t have lots of existing debt when really, a lender would prefer you to have existing debt as it shows to them that you’re able to fulfil the agreement by keeping up with your payments etc. So, if you’re starting from scratch, taking on any kind of credit is an excellent first step.
When it comes to improving your credit score, there are several steps you can take, all of which can both improve your score and help offset any bad credit markers you’ve accumulated previously. Some of these include: –
Register to Vote: Lenders often check the electoral roll during the application process to make sure the applicant is really living where they say they are. You can register yourself on the electoral roll at any address you currently live at be it your own property, rental or living with friends or parents.
Maintain/Review Your Credit Report: Keeping tabs on your credit report is a great way to make sure your credit score is at its optimum. Check it for inconsistencies frequently. Perhaps you’ve got an open account somewhere that you thought had been closed or a false missed payment flag which is dampening your score. In some extreme cases such as that of identity theft, you may have credit accounts in your name that you know nothing about!
Keep Old Accounts: The age of accounts can often contribute to your credit score. Old, well maintained accounts with lots of history of effective credit management are preferred over new accounts. This applies to both regular bank accounts and credit cards.
Limits/Low Balances: The first part of this is obvious, you must stay within your limits. Do not exceed your overdraft or credit card limit. If you need more money, arrange it in the proper way. And don’t use 100% of your limit. It’s significantly better to have a £999 balance on a £1,500 limit overdraft or credit card than a £1,000 limit one. And of course only borrow what you can afford to repay.
There are numerous benefits to maintaining a good or even excellent credit score. Essentially, the better your credit score, the more access you’ll have to financial products and services. You’ll be able to borrow more, find getting approved much easier and often you’ll be given more favourable interest rates versus those with bad credit simply because you’re considered a lower risk to the lender.
Perhaps you don’t need credit now and your credit score isn’t a primary concern. But nobody knows what is around the corner, it would be better to have access to credit than not. So even if you don’t need to borrow money now or in the immediate future, it’d be wise to maintain and improve your score regardless.
Those with good credit are likely to receive the following benefits: –
When it comes to credit checks, there are essentially two types. The soft search and the hard search. A soft search such as the one performed by our lending partners when you apply for a loan at Boutell should be considered more of an eligibility check than a credit check. It is a basic (soft) check to make sure you are who you say you are and that you are indeed eligible to apply and take on one of the credit products offered.
A hard search however is a full credit check. Checks of this nature will have access to the same data you see when you run your own credit report. They will be used by lenders to review your credit history to determine if you’re a good risk. Those with a good credit rating with a history of credit and debt repayments will obviously be favoured over those with bad credit. However the lenders we partner with at Boutell specialise in loans for bad credit where your score and history are not the primary consideration. A hard search will leave a record on your report and multiple hard searches, particularly over a short space of time can damage your overall score.
A single loan application would not significantly affect a credit score. Refusal however and multiple applications, particularly within a short space of time, would. Each time you apply for a loan or credit card, a lender would typically run a credit check on you. This check will let them know what debt you have currently, how close you are to your limits and what debt you’ve had in the past along with how well you’ve serviced it. This plus confirming your personal details such as name/address/income paints a picture for the lender and helps them determine how much of a risk you are.
Each time a credit check of this nature is performed, a record of it or mark is left on your credit report and the more checks you have, the more it lowers your score. This is a clear red flag for lenders, it’s showing them you’re being refused elsewhere or are wanting to take on more credit than you can afford. Therefore it is important to limit the number of loan applications you perform. Particularly if you do not follow through with the request or are refused by multiple lenders.
There are many advantages and reasons to choose Boutell over other lenders and brokers if you’re searching for bad credit loans. We specialise in facilitating loans for bad credit and endeavour to do this is a fast, fair, and responsible way. Here are just a few reasons why our customers love us and how we’re able to help people with poor credit get access to fast cash when they need it most.
You won’t know if you have a bad credit score until you review your report via a CRA (credit reference agency). Regardless of your current need for credit, checking and maintaining your credit report is considered good financial practice and something we’d recommend everyone does regularly. The UK has several references agencies which will allow you access to your report, these are but not limited to: –
There is no universal scoring method or system used by lenders to determine eligibility. Nor is there a central credit reference agency. Each of the above will have their own scoring model so you will likely see a different score depending on which one you use. All of the information regarding your accounts however will be the same.
Applying for a loan at Boutell.co.uk couldn’t be easier. To get started, simply head over to our application form. The whole process from application to decision to acceptance takes around 5 minutes and we’ll only ask the most basic information of you. Our primary eligibility criteria are as follows: –
You will also be asked for various pieces of information surrounding your income and expenditure. The process of applying for bad credit loans is exactly the same as it would be for those with a perfect credit record. All of our partners practise responsible lending and adhere to the FCA’s fair treatment of customers framework.
We encourage proper personal finance management here at Boutell but also realise that life happens, people get into debt and often find it a struggle to get out of. Fortunately, particularly in the United Kingdom, there is a wealth of information and real-world help and assistance at your disposal. Often free of charge. The resources we’ve identified below offer a range of debt management, advice and guidance by way of articles, guides and in some cases direct help regarding your specific situation.
