What is a bad credit loan?
A bad credit loan is an amount of money lent to someone with a poor credit rating. This allows people to borrow funds without the automatic judgment and denial that often comes from many financial institutes. We know how frustrating those repeated rejections can be, which is why we welcome all applicants and work with lenders who provide cash loans on bad credit.
Lenders that offer loans for bad credit ratings understand that a person’s financial history shouldn’t always be held against them. Past mistakes aren’t necessarily a fair representation of an individual’s current ability to repay debts.
With that said, bad credit loans usually come with a slightly higher interest rate to balance out the inherent risk of lending to someone with defaults and other blemishes on their report. They provide a helpful way to get money when most banks would deny your application, but they should only be considered if your circumstances really require it.
Cigno makes applying for cash loans on bad credit quick and simple. We have a high approval rate, a short 24/7 application process, and fast responses. We give everyone a fair go.
What is a bad credit history and why might you have one?
A bad credit history is typically the result of defaults on loans. A default is when an outstanding bill hasn’t been paid within 60 days. Defaults that have since been paid can impact your credit rating (not just defaults that remain unpaid).
If you have a Part IX Debt Agreement, are currently in a state of bankruptcy or have previously declared bankruptcy, this can also appear as a mark on your credit history.
Too many lender enquiries can damage your credit profile further, which is why a few loan applications getting rejected can spiral out of control. Some banks won’t even consider lending you money if you have a certain number of recent credit enquiries.
At Cigno, we believe everyone deserves a second chance. That’s why we won’t turn you away, no matter what your credit history looks like.
Repayments on Bad Credit Loans
We strive to make your repayments as predictable and painless as possible. Depending on your circumstances and preferences, we can:
- Align your repayments with your pay cycle
- Match repayments to your financial capacity
- Send a repayment reminder on payday
- Organise a direct debit from your account on payday
- Keep you informed of any additional costs (we have no hidden fees or agendas).
Once you’ve paid off your current bad credit loan with us, you’ll be able to apply for another loan right away. With your information already on file, doing so will be even easier and quicker.
Over time, by paying back your loans without going into arrears, you can improve your credit history and make it easier to borrow money in the future.
Get Approval for a Bad Credit Loan Today
When you apply for a loan with bad credit, we won’t judge. We’ll just ask you for the same information we ask every applicant:
- Some personal details
- Bank statements.
And that’s all. We only ask for the info we need, and we keep all your data safe and secure. That’s how we make it easier to apply for a loan online with bad credit.
When you make your loan application with bad credit, we’ll provide you with all the relevant information about fees and interest. You can read about these in advance on our Costs page.