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Cash loans with bad credit

If you need a small cash loan, lenders will check your credit history which includes your credit report and sometimes your credit score. They should also look at your current income, assets, employment and bank balance. Approval may be instant nowadays, but a bad credit history will usually mean interest rates are very high.

Can I get a loan if I have a bad credit score? 

The simple answer is yes, some providers do offer loans to people with a bad credit history. They do however come with very high interest rates and fees – sometimes as much as double or more of what you borrowed. This can make it even harder to get your finances back on track and under control.

What else can I do?

Instead of locking yourself into a loan with a high interest rate and lots of fees , it’s better to get your credit health back on track. It’s not so quick, but it’s worth it in the end. Not only could you get a better deal on your loan, but the steps you can take are great for establishing useful financial habits for life. Over time, as your credit record improves, you’ll start enjoying greater access to loans at a much more reasonable rate.

Steps to improve your credit health

  1. A really good starting point is to make sure you are really disciplined about paying all your bills on time. Late payments or defaults can negatively affect your credit health, which is viewable by lenders looking at your credit report.
  2. Your credit report will have a 24-month record of how you pay your existing loans. So, keep your payments up-to-date.  Getting up to date and, importantly, keeping up to date with your payments will improve your credit rating over time.
  3. Consider financial counselling. By getting advice from a professional financial counsellor, you can start building the foundations for smart debt management and improved credit health.
  4. Don’t open too many credit accounts at once. If you’ve only just started getting on top of your existing credit, opening too many accounts can have a negative effect on your report, where all your credit applications in the last five years are listed, and can also make providers cautious about your capacity to manage all that new credit.

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