Bad Credit Loans
There are many types of personal loans on offer from an increasing number of lenders and more traditional high street sources. However, your choice will be restricted if you have a poor credit history.
If you apply for a loan the lender will use credit reference agencies, for example Experian and Equifax, to obtain information about your credit history. This can include any difficulties repaying previous debts, county court judgements and information from the electoral roll. They will also note whether you have had a lot of credit checks carried out, perhaps for new store cards or finance on electrical appliances. All these factors will affect their decision on your application. If a lender refuses your application then they should give a reason for their decision. You are within your rights to check your credit history and you can appeal if you think it is wrong.
You can of course help yourself here by making your mortgage payments on time, bringing credit card repayments up to date or even reducing your credit card balances if possible. All these actions will help improve your credit rating and could entitle you to a cheaper loan.
Loan Lenders Beware!
Warning, low rates on personal loans may cause a bulge in your wallet. Always read the label.
Finding a bad credit lender
Even if you have a bad credit rating you will still be able to find a bad credit lender. However, as with any other personal circumstances some loans will be more appropriate than others. You may find that you are only offered unsecured loans at high interest rates. This is because you are viewed as a higher risk by the lender. However, if you are a homeowner you could consider a secured loan. If your property as use as security on the loan then it is less of a risk to the lender so they are likely to offer a lower rate.
Options if you have a poor credit history
An internet comparison service will help you to find a shortlist of bad credit loans lenders most likely to accept your application but make sure the service includes providers of loans to customers with poor credit histories. In fact some sites will specialise in finding a bad credit lender. This is important as refused applications will affect your credit rating. You can benefit from our considerable experience in this field. We are used to dealing with all types of customers and have a wide range of loans to suit most needs.
