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Low APR loans for bad credit isn't something easy to come by. The high APR rate offered to high risk customers is used as a form of insurance fo lenders; if you default, they'll still retain a high sum of money from the expensive APR charged. But, what's becoming even more difficult, is finding low APR loans without loan brokers.
In some circumstances a broker is a good source of finding various lenders and cutting out the hard work. But today more and more brokers are appearing on the scene and don't offer what they say; hidden fees, breaches of privacy and poor service is common. When you share you information with a broker they will not guarantee a loan, especially if you have bad credit, despite what their website says; moreover, your information is shared with not only their list of lenders but any additional company in this listing. This could be anything from 50 additional companies to a massive 14,000 storing your personal information. If you have bad credit this is certainly not the most ideal way to find a low APR loan.
The first method to finding low APR loans for bad credit histories is to compile a list of lenders. This can be difficult but you need to look at well advertised lenders first or check out comparison websites like Money Supermarket. Comparison websites are different to brokers; they won't ask for your personal information and will instead give you a list of lenders that offer bad credit loans.
Check the criteria for applying for every loan. Try to avoid companies that suggest they only accept perfect credit - many payday lenders will accept poor credit, so this is a great option. Only apply for loans you're sure you meet the criteria for; more rejections will leave you with an even worse score.
Terms and Conditions
A lot of brokers mask themselves as lenders. Don't fall for this ploy. Check their terms and privacy usage and ensure they are not a broker, as this is the last thing you want to sign up for. Brokers who don't state they are such up front are likely to be working for a larger net of thousands of companies to supply your information to. If in doubt, contact the company direct. The terms and conditions may also tell you what kind of borrowers they accept.
Guarantor and Door Step Loans
Guarantor loans, offered by companies such as FLM Loans, are the easiest forms of low APR loans for people with bad credit. Door step loans offered by other companies such as Provident Finance also accept bad credit with a slightly lower APR than other lenders.