Risk-free pre-approval
Total cost transparency
Affordability-focused lending
No large final repayment
Worried about poor credit while you need loans with a manageable repayment structure? There are times when you have urgent bills to manage. Pre-qualify for installment loans with no upfront credit check in the UK.
Extramilefinance is aware of the financial difficulties you have experienced. Here, you will not be asked to repay the full balance at once. With us, you can get loans that spread repayment across an agreed duration.
For someone with less-than-perfect credit scores, this structure will be easier to budget. Whether or not loans will be approved is subject to affordability and lending criteria. Review your terms carefully before finalising a loan offer.
Yes, with us, you can receive an initial decision, i.e. pre-approval, despite poor credit. However, since we are a responsible lender, we cannot offer bad credit loans on instant decision. Affordability and eligibility checks will be mandatory before a decision is made.
Your credit history is not the only part of a lending assessment. Understand how a credit search will be done before you apply. Pay attention to some factors when you want to borrow money with bad credit.
We maintain straightforward and transparent eligibility criteria. There are core requirements which anyone applying for small Installment loans with bad credit in the UK should fulfil.
What if you have a CCJ or default? These issues on your credit file will make borrowing difficult for you. However, such circumstances should not encourage you to look for guaranteed Installment loans for bad credit. Beware, as they can be misleading. In reality, a lending decision is impossible without an affordability and creditworthiness assessment.
There is no single minimum income requirement for a bad credit loan. Your disposable income should be enough to cover the proposed monthly repayments. Your earnings may vary, but there are certain ways you can establish them:
Full-time or part-time income can be shown through payslips, bank statements, etc.
Include tax records, bank statements, or freelance payments as proof of income.
You may be receiving benefits, which also act as proof of earnings, provided it establishes your affordability.
Therefore, you can get a loan as an unemployed person, and as a self-employed person as well. Individual affordability and lending criteria will matter.
A few simple steps constitute the loan application procedure. Every eligible applicant should complete them.
1. Decide the amount and term
Calculate how much you need to borrow between £1000 and £15,000. At the same time, work out the bad credit monthly loan repayment amount you have to cover.
2. Enter details online
Complete our online loan form by providing accurate information about your income, employment, and residential address. Submit the application after a quick cross-check to avoid errors.
3. Quick soft assessment
Extramilefinance will carry out an affordability scan based on the details provided. Your financial circumstances will also be validated before we provide a quick initial decision.
4. Receipt of pre-approved offer
A loan proposal is personalised based on what you have mentioned in the application. It will help you review the interest rates, total cost, repayment term, APR and monthly payments to make an informed decision.
5. Accept and agree
If you have found a suitable offer, accept it to receive the loan agreement. This will indicate the terms and conditions. Go through it carefully and sign if you are ready to agree.
6. Disbursement of funds
We process your request after receiving the loan agreement. Depending on when you apply for loans and your bank’s processing time, you may even get same-day Installment loans with bad credit.
The main reason is the repayment structure. An Installment loan allows you to divide repayments over the agreed schedule. This makes loan payments convenient for someone with less-than-perfect credit scores.
Interest rates will keep accumulating until the term ends. The length of the repayment duration affects the total cost of borrowing. However, you can choose a suitable option by looking at both the instalments and overall loan cost.
On the other hand, single-payment borrowing requires full payment at once. If the amount turns out to be bigger, payments may become due. The cost will depend on the repayment structure. Immediate payments can create huge short-term financial pressure.
Depending on the loan amount you choose, the repayment term may vary between 12 and 60 months. You need to point out the right repayment structure, which fits your budget. It should have the perfect balance of monthly payments and total repayment cost.
Use the table given below to understand how the necessary parameters change with different terms. Here, a £1,000 amount is chosen with 145% APR (approx.).
| Length of term | Monthly payments | Total interest payable | Total repayment amount |
|---|---|---|---|
| 3 months | £456.20 | £368.60 | £1368.60 |
| 6 months | £247.50 | £485 | £1485 |
| 12 months | £148.80 | £785.60 | £1785.60 |
**The figures given here are for illustrative purposes. The actual term and cost may vary.
If you look at the monthly payments, getting a 12-month loan with bad credit from a direct lender seems wise. However, when you check the total interest you have to pay with the total repayment amount, your overview will change. For this reason, review the accessible terms carefully before going ahead.
No, these loans are not suitable for everyone. Although they offer structured repayment, it may not help if you are struggling to meet core household payouts. It may turn out to be a costly form of credit in certain situations.
Getting small Installment loans with bad credit in the UK will be suitable for scenarios like when:
Knowing when these loans are a suitable option is not enough. You must understand when you should avoid getting these funds.
An Installment loan offers a convenient repayment structure compared to a lump-sum payday loan. These two loans are different in various ways.
| Installment loans | Payday loans |
|---|---|
| Repay via multiple scheduled payments | Repay after receiving your next paycheck |
| Budgeting is easy as payments spread over a period | Larger payments to cover by next payday make budgeting difficult |
| Repayment term varies according to the amount | Repayment term is usually shorter |
| Getting smaller monthly payments is possible | One-time payment is usually larger |
| The borrowing cost can spread across the term | The borrowing cost is going to be higher |
Extramilefinance looks past your old credit scars and emphasises what you can realistically afford. There are other ways we are different from other loan providers.
Complete data control : Your personal and financial information is safe with us. Necessary measures to protect it are taken from time to time.
Customised monthly term : Every loan offer is unique and is customised according to the financial circumstances of the borrower.
Fast processing : We focus on crucial pointers like affordability to provide you with a quick initial decision.
No early payment penalties : You can think of settling your loan early at any time. Just pay interest for the days you have kept the funds.
There are no defined ways, but you must check that the chosen purpose is permitted. Unplanned household expenses, home repairs, urgent travel, medical bills, etc., can be tackled. Avoid borrowing to solve every financial problem. This also applies to debt consolidation as well. Calculate the cost and understand the consequences of defaults before applying for loans.
They can be more expensive than borrowing options available to people with stronger credit profiles. This is because of the risk factor, which is considered to be higher when you are applying for loans with low credit scores. However, you can calculate and compare APR, total cost of borrowing, total interest payable and loan amount. This will help you find an affordable offer. For this reason, you must look beyond monthly payments.
The processing time may not be the same for every borrower. It depends on how long you take to apply for these loans, the verifications done in between and your bank's processes. If everything is perfect in your application and assessments are completed without requiring additional documents, you can receive a speedy decision. Applying in the early working hours can help you to get funds on the same day as well.
Missing repayments will result in late-payment charges. The ongoing interest rates may start accruing. This will cause the borrowing cost to increase. Moreover, missed payments get reported by lenders in your credit records. Your credit scores will drop temporarily. If this keeps continuing, your future borrowing endeavours may fail. If such a situation arises, you can contact us immediately to discuss options as soon as possible.
No, you don't need to accept the pre-approved offer. This loan proposal is meant to help you understand the loan rates and repayment structure carefully. Therefore, receiving a loan does not mean that you are bound to accept it. Review and compare multiple such offers so that you can spot the most suitable one. Accept the affordable offer.
