Getting a loan if you have bad debt already can leave you in a difficult position. If you are someone with a poor credit history, getting approved for a loan when you need one in an emergency may seem impossible too. This may lead you to search for lenders of bad debt loans, however, this type of loan may not be suitable for you.
Here at QuidMarket, we don’t provide bad debt loans, however, we do provide short term loans for suitable applicants. It may be possible for us to help those with a poor credit history depending on your circumstances and affordability. They cannot be used to cover any existing debt, but if you have an unexpected expense to settle, we may be able to help online today.
- New customers can borrow between £300 and £600*
- Returning customers may be eligible to borrow up to £1,500*
- Flexible repayment terms between 3-6 months
- Bad credit histories welcome
- QuidMarket is an FCA Authorised UK lender
- No hidden fees
- No guarantor or collateral needed
- Same day cash transfer wherever possible
- Quick and simple online loan application
- Decisions made by humans, not computers
*Loan amounts and repayment terms are dependent on affordability checks
To help you make an informed decision, below you’ll find more information about bad debt loans, what they are used for, and more information about our alternative online loans. If you require a quick loan to settle emergency expenses and you can afford the repayments needed, you can click apply now to start an application today.
What are Bad Debt Loans?
When borrowing money, it’s important to avoid situations where you get into bad debt. This is where the amount of borrowing you have has become unmanageable, leading to arrears on loans, credit cards and store cards, and difficulty paying your essential bills. This can even lead to defaulting on a credit agreement, CCJs and in worst-case scenarios, bankruptcy. The idea of a bad debt loan can be looked at in two different ways. Firstly they can be a type of loan that is similar to a debt consolidation loan, where you can borrow money to cover your existing debts and turn multiple agreements into one manageable loan. You’ll then have repayments over a fixed term to pay this off including interest depending on what you can afford.
Bad debt loans can also refer to lenders who can provide financial help despite someone having existing debts and bad credit. The issue with this is, this type of lender may not be following responsible lending guidelines as set out by the Financial Conduct Authority (FCA), ensuring that any further borrowing does not put someone in further financial difficulties.
Here at QuidMarket, as an FCA authorised direct lender, we do not provide loans to those in current financial difficulties, or those that we cannot determine a loan from us would be affordable. Our loans are for emergency use only when you have no other options available. If you do not have available savings to help we may be able to help. An instalment loan from us is not suitable for paying off any existing debt either, or to cover essential outgoings such as rent, mortgage, or utility bills.
We’re happy to help consider applications for our alternative to bad debt loans, but you’ll need to ensure this is the right option for you and it is affordable. We may be able to help those with a history of poor credit, but this cannot be guaranteed until credit and affordability checks are completed.
Bad Debt Loans vs Bad Credit Loans
Both types of loans may seem similar, but there is a difference between a bad debt loan and loans for those with bad credit. A bad credit loan may help someone with a low credit score whose financial difficulties are in the past. It can take time for your credit rating to improve, so even if you have plenty of affordability now and no outstanding debt, you may still have a low credit rating.
We understand this at QuidMarket, and that’s why we may be able to help with our small loans. If you can afford the repayments required for the loan amount you need, whether it’s a £300 or £600 loan, we’ll assess your application and determine whether we can help today. We still perform a credit check, but we’ll focus on your ability to afford the repayments on a 3 – 6 month loan term.
A bad debt loan is usually sought by those in current financial difficulties who are looking for financial support. However, as they may have low affordability and existing debt they may be struggling to maintain, the choice of lenders for this type of loan will be low and they may not be FCA approved. If you are in bad debt, you should consider whether further borrowing is the right solution.
If you are someone in current financial difficulties, please visit Money Helper who can provide further support and information that may help.
Applying for a QuidMarket Loan Online
To apply online for an affordable loan at QuidMarket, you’ll need to meet the following requirements. Each application is subject to credit and affordability checks, so the below means you can complete an application form but doesn’t guarantee you’ll be approved.
- Live in the UK
- Be over 23 years old, and under 65 years old
- Have a mobile phone (we send an SMS code during your application)
- Hold a UK bank account with a valid debit card
- Be in employment and take home at least £1,300 a month
If we can determine a loan is affordable for you to sustain throughout the repayment term, we could approve your application today. We always look to process as quickly as possible so that you can receive the funds into your bank account fast. Please note, your bank will need to accept Faster Payments and that applications made outside of our business hours may not process until the following working day.
Start Your Application Today & Get a Quick Decision
Whilst we cannot help with bad debt loans, if you are someone needing funds to cover a short term financial emergency or unexpected expense, we may be able to help online today. Click apply now to begin your application and we’ll look to provide a decision in principle as quickly as possible.
If you have any questions, please contact us, or refer to our FAQs.
What is a bad debt loan suitable for?
A bad debt loan should only be considered if you are looking to manage your finances and can afford the necessary repayments. They aren’t suitable for maintaining monthly repayments on existing commitments, or for covering emergency expenses. We do not offer bad debt loans at QuidMarket, and you should carefully consider if this type of loan is right for you before applying.
Is a bad debt loan similar to debt consolidation?
Yes, both loan options can help to restructure and maintain existing commitments. However, those thinking of applying for either type of loan will need to consider whether this is the right option as it can mean extending the debt over a longer period and possibly paying more interest on top of the existing outstanding balance. We don’t provide either of these types of loans at QuidMarket, instead, we can look to help cover short term financial positions if you can afford the necessary repayments.
Am I guaranteed help with a bad debt loan?
No loan can be guaranteed until credit and affordability checks are completed. If you do find guaranteed loans online, you should carefully consider the terms before applying. Here at QuidMarket, whilst we cannot guarantee we can help, we have helped those with a poor credit history with emergency loans before. You can click apply now to see if we can help today, as long as you can meet our eligibility requirements.