Small loans for bad credit are a brilliant option for people with low credit scores.
Choose the wrong lender, though, and you could end up with big problems down the road.
Financial hiccups are part and parcel of life. Car repairs. A birthday celebration. A spot of decorating. Replacing a kitchen appliance that’s on the brink.
Drinking water upside down isn’t going to solve these hiccups, but a small loan might.
The kind of small loans we’re talking about are similar to those that you often see advertised by payday or high interest lenders. It might be for £500 – just enough to get you through the month before your next wage lands.
While taking out a £500 loan shouldn’t ordinarily be a problem. However if you have bad credit, it can make things a little trickier.
This is the reason a lot of people find themselves in the clutches of payday lenders, where cash is often easier to access, but the financial pitfalls are far more difficult to escape.
Here, high rates of interest coupled with extortionate late fees can leave people trapped in a cycle of debt.
Why Northern Community Bank’s small loans for bad credit are the smart choice
At Northern Community Bank, we firmly believe a person’s credit score should not define them. Or prevent them from getting access to money they may desperately need.
With some lenders, the moment a low credit score is flagged on the system, that particular loan application is as good as finished.
We look at much more than a credit score. We look at your affordability for a loan – what income you’ve coming in and what bills you have to pay out for. That way, we are able to tailor repayments accordingly.
Also, the interest rate that you see advertised will be the rate applied to everyone who borrows money, rather than simply being a headline figure designed to attract custom.
On top of this, we guarantee that there will be no extra charges, fees or penalties hidden in the small print when you take out one of our small loans.
3 ways Northern Community Bank can help you build a better credit history
While we’re more than happy dealing with small loans for bad credit, we want to see all our account holders’ credit ratings on the up.
Here are just some of the ways taking out a loan with Northern Community Bank can help do just that.
1. We can improve your credit history by reporting repayments made back to the credit reference agency.
2. We help account holders stick to a saving or loan repayment schedule – meaning we are more likely to re-lend again if you need it.
3. Instead of trapping you in a cycle of debt, we introduce a habit of saving. All account holders are required to regularly save alongside making loan repayments through our ‘Save as you Borrow’ scheme. Borrowing less shows you are managing your credit better.
If you have any questions about small loans for bad credit, or you’d like to talk through any other financial queries you may have, don’t hesitate to contact us today.
