Bad Credit Loans UK
Will you be offered the typical APR? Probably not
With bad credit loans UK customers can choose from a wide range of lenders, many of whom promise free gifts and ultra-low interest rates. However when you look at the small print you'll soon discover that the rate you'll pay is likely to be much higher.
When it comes to bad credit loans UK lenders go out of their way to make their products as attractive as possible, with offers of free gifts such as DVD players and ultra-low interest rates. A bad credit loan at 6.9% APR sounds great, especially when you consider that 6.9% APR is the same rate offered by mainstream lenders to customers with good credit ratings.
Inevitably, the small print tells a different story. The headline rate is for loans in excess of £30,000, secured on your property; borrow £10,000 and the rate rises to 9.5% APR. And these are typical rates, so the lender may charge even more if it considers you to be a risky prospect; for unsecured loans, the rates will be higher still. Some firms also charge hefty administration fees of up to 10% for "problem cases".
When they offer bad credit loans UK lenders often suggest that they're ideal for people who can't prove their income, such as the self-employed. However, you'll find that many mainstream lenders are quite happy to consider applications from self-employed people, and if you can't prove your income you might find a self certification loan offers a lower APR.
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