Get a long term loan even with the Bad credit
Anna Johnson September 22, 2022

A bad credit issue is a genuine problem.

Not just a genuine one, but suffering a bad credit score is also a very common problem in the UK.

However, the good news is that you can manage this problem with a loan.

There are other financial services available to sort out the complications. You have financial institutions to provide smart plans to manage a bad credit score. Then you have got direct lending solutions to treat the credit score well and make more improvements to it.

In this post, we are going to talk about how direct lenders can improve your credit score. We will also know how taking out a long-term loan is possible even if you suffer a bad credit score.

Without further ado, we can read on.

Why a Long Term Loan for Bad Credit in the UK Is Useful

Many in the UK struggle with poor credit scores due to a variety of reasons

For example, not knowing the credit limit is one of the common reasons for this. The credit limit is a set amount, spending beyond this means a breach of the credit card rules. As a result, you pay some extra cash for penalties.

Well, there are other reasons to pay that penalty too.

  • You make an untimely payment, your credit score goes low and you pay extra.
  • Your credit card payment is insufficient in amount and you again experience a poor credit score with said complications.
  • Not knowing Annual Percentage Rate (APR) values and making insufficient or late payments decreases credit scores.

Added to these issues, credit card debt is a significant problem. You may not have paid your debtors to whom you owe money using your credit card. All these records impact the credit score seriously.

You can suffer a poor to a really poor credit score.

Feeling a bit down, eh?

Well, we can say that the solution to a poor credit problem reaches you in the form of a special long term loan for bad credit in the UK. It is because the lenders shaped this loan option to help you recover your credit score.

Usually offered for longer terms such as more than 3 years, this loan works as the antidote to your bad credit issue.

Read the explanation below to understand this:

  • You take the loan out without worrying about your credit score. This is because lenders offer you the amount as loan estimating your income statement for repayment and nothing else.
  • Using the loan, you make pending credit card payments. The same amount can help you consolidate multiple debts too.
  • Now that you have taken care of the credit card payments, choose a flexible repayment package and pay your lenders back the loan amount in regularised manner.

Bottom Line: Credit card payments and debt consolidation already improve your credit score. You can further improve your score by simply paying off your loan on time.

How Can You Take This Loan out?

Well, the method is pretty simple actually.

You just need to make sure you followed some steps in careful ways.

Here are the steps mentioned below:

Find a Direct Lender Site

The loan is offered online from various organisations. However, a direct lender website is the first choice for many borrowers because of a few reasons.

They are:

  • Direct lender websites work carefully to offer loans to people who are suffering a bad credit issue
  • These professionals will make a soft credit check. What it means is lenders will evaluate your credit score but that won’t affect lending.
  • You may not get a flexible repayment package with varieties of terms and alternative interest rates with any other provider but direct lenders.

There are perks from lenders you will love. So, instead of being confused with too many organizations, try direct lending assistance. You will surely get a loan with a bad credit score without much hassle.

Check Your Credit Score by Yourself too

Check Your Credit Score

What this means is your credit score makes a difference in defining the loan option. You may think you have a bad credit score, but turns out, in reality, you have a good one.

Or it might be a very poor credit score.

To keep this confusion at bay, work by yourself to find out the right credit score.

This is how you can do it:

  • Ask your credit card provider to update your latest credit report and score
  • Check the credit card standards. Log in to the online portal to get recent credit ratings.
  • Find out what exactly is the status of your credit score. Is it bad? Is it good? Or is it very bad?
  • After these procedures, make a check all the credit card transactions manually by yourself. This cross-checking will find out if your credit card provider missed any point or calculated your credit score inaccurately (no offence!).

If you track an issue that alters your credit score or if there’s a doubt, go and talk to the official credit card provider to solve the problem.

Look at Your Income Statement & Use a Loan Calculator

When we are thinking of a long-term loan for bad credit in the UK, we can assure ourselves of the money if we have a decent and stable income. It is because lenders consider income as the only route for repayment. Yes, the poor credit score is ignored to offer you cash quickly.

  • Check your income statement, i.e. your salary and the income related perks you get.
  • Use a loan calculator to calculate alternative loan amounts to check which particular interest rate and repayment duration suits you the most.
  • Share your income details with the direct lender you chose for advanced assistance.
  • Find out if repaying is comfortable for you, i.e. if you can do it long-term without sacrificing much of your lifestyle.
  • Be calculative and come up with the best (and the smartest) solution for your loan option.

Then, taking the loan is going to be as easy as ABC when you have found direct lenders.

To Conclude

A simple long-term loan makes you reach it when you are conscious of your income status and credit score.

Yes, a bad credit score is a problem we all know.

But, with every problem, comes a solution.

You have just known how to ‘take that solution out in this post.