Can anybody recommend the lowest cost loan for bad credit?

versace1888

I got myself into a mess financially around 6 years ago when I lost my job. I basically stopped paying all my bills and buried my head in the sand, leading to me now having a very, very bad credit rating (think it's the worst it can possibly be).

I am now in a much better position and managing money a lot better. I am a homeowner (have been for 10 years) but ideally I don't want to secure anything against my house.

I am looking for a loan where I can borrow £1,500, basically to do some home improvements and pay it back over 18/24 months. I have no worries about paying it back monthly and I definitely wouldn't do anything to risk making my score any worse.

I wondered if anybody could recommend a company that would perhaps loan me this to pay back monthly at a rate that's not too mad? Some I have looked at would want me to pay back in excess of £6,000 for a loan of £1,500.

Can anybody offer any recommendations?

Jamiesmum

Are the home improvements really needed? Is it worth paying interest on?

Why not just do it bit by bit and save instead, is it cosmetic or necessary?

[Deleted User]

There are no reasonably priced loan for people with bad credit, as lenders won't take that sort of risk. I'd imagine the lowest rate you're looking at is with a guarantor loan of around 50%.

I'd agree with the above - save and do what you can, when you can. I assume you've got up to a couple of hundred pounds spare each month to be looking at that sort of loan - save that, and you will quickly get to where you need to be.

Herzlos

£1500 over 24 months is going to be a bit over £100/month. Can you just save that amount and do the home improvements next year? What is it you're planning on doing?

glennstar

Are you now living back in the UK? Obviously getting a loan here if you are not resident is going to make the situation more complicated.

Chelseafan237

I have bad credit and I was going to get a Satsuma loan, but the high APR scared me. I ended up with a uk credit guarantor loan at 37.9% (i had to use my dad as the guarantor). Sounds high but much better than the 1500% satsuma offered me!

Gaz83

Chelseafan237 wrote: »

I have bad credit and I was going to get a Satsuma loan, but the high APR scared me. I ended up with a uk credit guarantor loan at 37.9% (i had to use my dad as the guarantor). Sounds high but much better than the 1500% satsuma offered me!

If your dad was a guarantor, why didn't you ask him just to take out a loan at a 'normal' APR and give you the money?

marcarm

The high Apr scared me, but nearly 40% was fine!

iolanthe07

I ended up with a uk credit guarantor loan at 37.9% (

Have you any idea how much this will cost you in the end? Taking out a loan at 37.9% is utter madness, imho.

DCFC79

versace1888 wrote: »

I got myself into a mess financially around 6 years ago when I lost my job. I basically stopped paying all my bills and buried my head in the sand, leading to me now having a very, very bad credit rating (think it's the worst it can possibly be).

I am now in a much better position and managing money a lot better. I am a homeowner (have been for 10 years) but ideally I don't want to secure anything against my house.

I am looking for a loan where I can borrow £1,500, basically to do some home improvements and pay it back over 18/24 months. I have no worries about paying it back monthly and I definitely wouldn't do anything to risk making my score any worse.

I wondered if anybody could recommend a company that would perhaps loan me this to pay back monthly at a rate that's not too mad? Some I have looked at would want me to pay back in excess of £6,000 for a loan of £1,500.

Can anybody offer any recommendations?

A credit card might be an option but 1 that has the best/cheapest apr so a 0%.

A guarantor loan is an option but you will end up paying more for it than you should.

paddyrg

Guarantor loans are always a bad idea for all parties - if your father is able to guarantee a loan for you, perhaps they could lend you the cash and you pay them back - it's effectively the same thing, just cheaper.