Bad Credit Loans - Let The Loan Arrangers Find You A Loan

As a major loans broker in the UK, we have access to a number of specialist lenders that are sympathetic towards people that have adverse credit problems whether they are current, or in the past. Using our experience and expertise, we will compare all of bad credit loans available in the marketplace, and match you with the best one to suit your requirements and circumstances. Our loan consultants will endeavour to obtain the lowest rate possible for you from all of the loan products that are available to you.

What Is Bad Credit?

Unfortunately, there are an increasing number of people that are beginning to, or have all ready, feel the pinch of the credit crunch and are having difficulty maintaining their credit commitments. Missed payments and arrears all add up to one thing – a bad credit history.

The problem really manifests itself when applying for new credit.  All those missed payments and arrears show up when a prospective lender performs a credit check when assessing the credit application.  In today’s finance market, lenders are being incredibly choosy as to who they wish to lend to and are tending to opt for those customers with a perfect, or near perfect credit rating.

A bad credit history is normally associated with having missed payments, late payments, CCJ's (County Court Judgements) or defaults, all of which will get registered on your credit record. However when it comes to determining your credit score there is a little more to it than that. For example not having a history of any loans or credit cards can reduce your score. The problem here is that the lenders like to see a healthy payment profile when they look at an applicant’s credit record.

Another major contributory factor is how much of your available credit have you used. For example, if you have a credit limit of say £5,000 but you have only spent £250 of that, your score will be higher than if you were maxed out. For this reason it is worth having multiple credit cards that are not used, or rotated in use and repaid in full every month. This will help to boost your score!

How Do I Get a Loan With Poor Credit?

Strange as it may seem you may not have quite as bad a credit record as you think. This means that you may be able to get a loan after all if you are put in front of the right lender. However, if you have got a really bad credit record, then again, you need to be put in front of the right lender.

Because secured loans offer less of a risk to the lender, then they are often more sympathetic to people that have had a few errors in the past. Some lenders are more geared to bad credit loans and actually specialise in that area. Therefore, if you have a bad credit history and you are a homeowner with equity in your property, then a secured loan is probably the best option for you id you have been refused unsecured credit recently.

But what about those that are not homeowners? Where do you turn for finance? You may have been looking for a personal loan but keep getting turned dow for bad credit. If you can find someone to act as a guarantor for you, then you can borrow up to £5,000 with a 'guarantor loan'. A guarantor is someone that will back your loan application and assume responsibility for the loan if you should default on the repayments. In order to qualify, your guarantor needs to be a homeowner, have an income of any sort sufficient enough to service the loan and have a clean credit history. This is because the loan application is based on the credit worthiness of the guarantor, and not the actual applicant. This type of loan is best suited for an applicant that has little or no chance of qualifying for a loan. Using a guarantor almost guarantees them getting the loan. It is also a great way for a family member or parent to help someone out with a loan but without actually having to put up any money.

If you are only looking for a small amount of cash, say up to £500, then you may be able to make use of a payday loan. Payday loans are basically short term loans that are designed to get you out of a cash shortfall. The idea is that you take out the loan and then repay it on your next payday. These loans are incredibly popular at the moment but it must be stressed that they really are only to be used on a short term basis. They can become a very expensive way of borrowing money if you use them for longer than a couple of weeks or a month. If you need money on a longer term basis then you really need to find another alternative rather than use a payday loan.

Consolidate Your Debts and Save Money.

People usually get themselves into trouble financially by having lots of loans and credit cards and not being able to keep up with the repayments. Missed payments lead to arrears and defaults which inevitably leads to a damaged credit record, which is then out there in plain view for lenders to see when the next loan application is submitted.

Consolidating your loans and credit cards into one cheaper loan, with just one lower monthly repayment can save you tens, if not hundreds, of pounds per month. This makes managing your finances a whole lot easier. Also, because you have reduced your monthly repayments, you will possibly free up some disposable income enabling you to manage your life a little better as well.

Once you have freed up your income and are managing your new loan repayment easily, you will also realise how much less stress is involved in handling your finances.

The additional benefit to all this is that because you can now easily meet the repayment schedule, and all your other debts have been paid off and satisfied, this goes a long way to improving your credit record, as any future lender that you apply to will see that you are able to service a loan responsibly and properly.

If you would rather discuss your requirements and circumstances with one of our qualified customer liaison officers, why not give us a call to discuss your loan requirements in more detail. Your call will be treated in the strictest confidence and you will be under no obligation whatsoever.

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