How to get the best deal on bad credit personal loans?

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If you’re looking for bad credit personal loans, it can often feel like you’re never going to find a deal that suits you. As is the way when you’ve got bad credit, it can often feel like the odds are stacked against you.

Well, that doesn’t necessarily have to be the case.

Sure, your bad credit score does mean that you’ll probably find it harder to get a loan than people with good credit. It also means that you’ll probably be subject to a much higher APR. But it doesn’t mean that you must settle for the first loan you’re eligible for. Far from it, in fact.

Here are a few tips for making sure that you get the best deal on bad credit personal loans:

Make sure that you’ve taken care of the little things that are hurting your credit rating

If you’re in no rush for the loan (or it’s for something that you can put off for a little while), it might be worth considering postponing your application until you’ve improved your credit score.

Check your credit score and make sure that you’re registered on the electoral role and that any unused accounts with credit on them are closed. Wait a month or two (that’s how long the changes usually take to affect your credit score) and then see if your credit score has improved.

Shop around for bad credit personal loans

We can’t stress this enough – don’t just settle for the first loan you find. There are lots of options available for people with bad credit.

Although it is tempting to apply to the first company you think will accept your application (especially after finding so many products that you’re not eligible for), you’re much more likely to find a better deal if you shop around.

Use sites like GoCompare or MoneySupermarket to find and compare products that are right for you.

Bamboo’s Top Tip: Pay attention to the interest rates and the APR – although interest rates are important, the APR is a better indicator when comparing different deals, as it also includes things like fees.

Consider using a guarantor

If you’re looking for the best deal on bad credit personal loans, it’s well worth considering a guarantor loan; in the eyes of the lender, having a guarantor makes you a much safer bet.

(If you’re not sure what a guarantor loan is, check out our in-depth overview. But, in a nutshell, it’s a personal loan where somebody guarantees your payments if you can’t make them.)

In fact, because the loan company is statistically far more likely to be repaid, guarantor loans are a win/win for everybody involved: the lenders are far happier to lend you the money you need, and you’re more likely to be granted larger amounts with a lower APR.

At Bamboo, we offer bad credit personal loans and guarantor loans for anywhere between £1,000 and £8,000 – if you’re considering borrowing money but have bad credit, why not see how much you could borrow? If you’re approved, you could be on your way to repairing your credit score within 24 hours. (Representative APR 49.7%)

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