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We’ve put together a quick guide to bad credit personal loans for single mothers who are looking for personalised loans based on their unique circumstances.
When you’re a single parent, money can be tight and, if you’ve got a poor credit history, borrowing money can seem impossible.
If you work, then you’re probably spending lots of money on childcare, leaving your wage packet quite a bit lighter at the end of the month. If you’re a full-time mum, we’d be willing to bet that you’ve become an expert in making the most of every single penny.
But, sometimes, life has other plans.
When you’re already stretching the pennies, a curveball like your washing machine giving up the ghost, your car breaking down or a surprisingly hefty bill can spell disaster.
Or maybe disaster hasn’t struck, but you’re starting to dream of the sand between your toes and a drink in your hand – just a little bit of you time to unwind and let your hair down.
Whatever the reason, if you’re a single mum with a bad credit score it can feel like you don’t have much chance of being approved for a personal loan. However, don’t give up hope. Keep reading this guide to bad credit personal loans for single mothers.
Before you look for bad credit personal loans for single mothers, consider the alternative options
We’re not going to patronise you and go through all of the usual advice – budgeting, saving, borrowing from the Bank of Mum and Dad – if you’re considering a loan, we’re sure that you’ve probably already considered, tried or done all of these.
However, that doesn’t mean that you necessarily have to take out a loan. After all, borrowing money should always be the last resort.
There are a number of charities across the UK that offer grants for single mums in a variety of situations, from struck by unexpected disasters to needing an extra hand with bills.
And, thanks to Turn2us, they’re super easy to search, find and apply for. Just head over to their website, enter your postcode, gender and age and they’ll find all of the grants that you can apply for.
Of course, there’s a certain amount of filling in application forms and explaining why you need a helping hand, but – if you’re successful – you’ll be given the money and won’t be expected to pay it back. There’s grants for everything, from single mothers that live in certain areas of the country to women in financial hardship.
(Plus, while you’re there, Turn2us have a benefits checker that lets you check that you’re getting all of the benefits and tax credits that you’re entitled too. Definitely worth a look – you might discover that you’re eligible for a few extra quid a month.)
What bad credit personal loans for single mothers are there for me?
If you’re not too clued up on credit scores and what it all means – check out our handy guide: Bad credit score? Key influencers of your credit record.
As a single mother with bad credit, you might be eligible for an unsecured personal loan if your credit score is on the fairer side of bad. With an unsecured Bamboo loan, you can borrow up to £5,000, even if you’re not a home owner. And, if you are a home owner, it won’t be used as security against your loan.
However, if your credit score is on the lower end of the scale, then you might still be eligible for a guarantor loan. This loan is very much the same as an unsecured loan (in that none of your belongings are held against the loan) but with one important difference – you get somebody to vouch for you and guarantee your payments by agreeing to pay them if you can’t.
In fact, they’re a way for people with poor or no repayment history to borrow money and begin to rebuild their credit score. If you’d like to find out more, see our guide to everything you need to know about guarantor loans.
At Bamboo, we offer unsecured loans of up to £5,000 and guarantor loans for amounts up to £8,000 – all of which could be approved and in your account within 24 hours, subject to checks. Representative 49.7% APR. Of course, taking out a loan is a big decision and should always be your last resort, but if you need our help, we’ll be there for you.
- Author Jack Barclay
- Posted 9 November 2016