Best loans for bad credit and low income households

It can be hard to find the best loans or finance solutions if you've got a history of bad credit or are earning a low income. Most unreliable providers - those who provide a high interest rate, uncooperative customer service and tricky repayment schedules to keep you in debt - seem to be the only companies available for low earners.

As a word of advice always avoid payday lenders if you have a low income. They may offer to take on anyone with bad credit but they're interests rates are much higher than any other provider; you won't get the amount you require, especially if you're looking for a larger loan, and you'll end up borrowing again after you pay back the debt. Most payday lenders are notorious for having an APR over 3000% - when you compare this to other well-established companies the interest is absurd. Always shop around and look for the best deal; don't be put off if you're not accepted in the first instance.

You should always apply for lenders whose criteria you're sure to meet. By applying to multiple lenders and being rejected simply because you didn't read their criteria properly you're likely to have this recorded on your credit profile - this makes you look "desperate" to other lenders and the chances of you receiving a loan drop significantly. Be picky about who you choose and, if you're rejected more than 5 times, try again in six months.

Best Loans for Bad Credit and Low Income

Firstly, try Direct.gov.uk if you're struggling on a low income and really need the cash. This is especially useful if you're on benefits, but you don't have to be receiving any form of support for the government to apply. You can receive a Crisis Loan, which is judged on need only, for anything up to £300 (normally £100 in most cases). You don't pay interest on the loan when you pay it back.

Norton Finance are also a well established bad credit lender with a generous APR of 29.5% in most cases. You can apply for a personal loan of £5000 to £10,000 with a repayment schedule to suit you and receive a free quote, which isn't recorded on your credit profile, before you apply. The loans are unsecured.

Wentworth Direct, much like Norton Finance, provides loans on a 22% APR basis (variable) which are also unsecured. You can borrow from £1000 to £15,000 with Wentworth Direct.

Ocean Finance also offer good loans for people with bad credit and on a low income. They're famous for providing credit to people who have been refused elsewhere and have good reviews from most customers; loans are unsecured and secured, with variable rates depending on the customer.

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