Maybe, you thought you couldn’t get long-term loans for bad credit. Well, that’s wrong. Some lenders believe that you deserve to get long-term credit, despite your credit score.
You can get any loan regardless of your credit history in the current era. However, you have to prove that you have an active source of income to repay the loan.
In this guide, you will know how to access long-term loans even with a bad credit score. Keep reading.
What are Long Term Loans?
What do you think when you hear about long-term loans? Of course, you could be thinking of a loan with a one or two-year repayment period. But wait, long-term loans can also extend up to six years for personal loans and 30 years for mortgages.
Lenders who give out long-term loans for bad credit require you to prove that you can repay the loan. Alternatively, you can provide your property as collateral against the loan you take.
For instance, if you need an auto loan, you will co-own the car with the lender until you repay the loan. So if you don’t repay on the agreed time, the lender repossesses the vehicle.
When Do You Have Bad Credit?
Bad credit can happen to anyone, especially with the many uncertainties in the current economy. For instance, millions of employees lost their jobs during the Covid-19 pandemic. As a result, those with loans had no other option than to default on them.
When you default on a loan or repay it late than the time you agreed with the lender, it will harm your credit score. Remember that the lenders report your repayment pattern to one of the three credit bureaus. Therefore, if you keep paying late, you will have a bad credit score.
To produce your credit score, the credit bureaus use the FICO score scale, which runs from 300 to 850. Your credit history will be poor if your FICO score is less than 580. However, don’t panic since you can get long-term loans for bad credit in the UK.
Where to Get Long Term Loans for Bad Credit in the UK
Everyday Loans
Everyday Loan is a site where you will get long-term loans for bad credit regardless of your history. However, this direct lender needs you to have more than 18 years and be a UK resident before you can get a loan.
In addition, you must have a stable source of income before they can consider you for a long-term loan for bad credit in the UK. On this site, you can get a long-term loan starting from £1000 to £15000.
This lender gives you plenty of time to repay your loan and make long-term financial plans. The repayment period starts from 18 months to 60 months. Furthermore, their interest rate is 71.3%* p.a. (fixed), and the maximum Annual Percentage Rate(APR) doesn’t exceed 299%*.
Dot Dot Loans
DotDot loans is a direct lender in the UK that gives out long-term loans to people with a lousy credit score. The application process is transparent and straightforward on their online site.
With this lender, you can get a long-term loan for bad credit, starting from £1500 to £5000. In addition,the Interest rate is 248.19%* p.a. (fixed) with 824.7%* APR Representative.
The repayment term for long-term loans in DotDot starts from 18 months to 48 months. So, the repayment terms are flexible enough to allow you to plan your finances.
Sunflower Loans
Sunflower loans allow you to access long-term loans even when your bank doesn’t approve you due to bad credit. However, Sunflower needs your age to range between 21 and 65 years as a precaution.
This lender will give you long-term loans for bad credit starting from £1000 to £4000 with a representative APR of 64.5%*, with a maximum APR 84.5%*. In addition, the lender gives you a repayment period starting from 24 months to 48 months.
MyOplo Loans UK
Apart from giving you long-term loans for bad credit in the UK, MyOplo has an active blog that feeds you current information to manage your finances wisely.
MyOplo loans give long-term loans starting from £2000 to £15000. You can either get a personal or a home loan with MyOplo lenders. However, home loans start from £5000 to £100,000.
Personal loans’ repayment terms start from 24 months to 72 months, with representative APR is 29.3%* and the interest rate of 13.38%* pa (fixed).
. However, repayment for home loans can extend up to 25 years.
Loan Princess
Loan Princes is a loan broker in the UK that helps people with bad credit to get long-term loans for their projects. In addition, this site is suitable if you need a considerable amount of cash.
Loan Princess has multiple lenders who will give you a long-term loan for bad credit, starting from £1000 to £35000. That makes this broker stand out for those who need lots of cash.
The lenders from this broker charge the rate of interest 41%* per annul (fixed). Representative 49.7%* APR with repayment terms starting from one year to seven years. That allows you to do other projects since there is no rush in repaying the loan.
Bottom Line
As you’ve learned, lenders like Loan Princess can help you when you need a vast amount of money to do your projects. First, however, always ensure you can repay the loan comfortably.
In addition, the lender can help you rebuild your credit score if you maintain timely repayments of the installments.
* as per the information available online/on the lender’s website as on 05/04/2022.