Lenders That Consider Applications From People With a Bad Credit Score – Do They Exist?
People With a Bad Credit Score
If you have been bankrupt, missed payments on previous debts or failed to settle your debts and received county court judgements, you will have a bad status score. Alternatively if you have no credit history, i.e. you haven’t had any form of credit you will also have a bad credit score. Having a bad credit score limits your ability to secure credit, by way of unsecured loans, credit cards and even mobile phone contracts. However there are lenders out there that are willing to consider applications from people with a bad credit score, therefore it’s important that when looking for a loan you apply with the correct lender.
Note that it is not guaranteed that lenders that do consider applications from those with a bad credit score will approve a loan as they need to take into consideration the severity of your bad status score, and whether or not you can actually afford a new loan. If approved for a loan, another drawback is that you will have to pay higher interest rates, which will make the loan more expensive in the long run. Interest rates do vary therefore it is useful to use a bad credit loan calculator to work out what you may be eligible for, what the repayments are likely to be and if you will be able to afford it prior to applying. This will also help you to minimise further hits to your bad status score, as applying for loans and being rejected further impacts your credit rating.
Another useful thing to do is check your status score. This can be done using a variety of website tools on the internet, such as checkmyfile.com. These website tools provide easy access to your credit file, including all outstanding status information, any missed payments and your credit score. Some also contain handy tips on how to improve your credit score, by way of ensuring that you’re on the electoral role, and making sure that you keep up repayments on any existing debts (to name a few). With time these things will help to improve your bad credit score.
Having a clear idea of the position that you’re in financially can help you to decide whether a loan is right for you, or whether lowering your monthly outgoings, working to pay off your existing debts and improve your status score is the most profitable in the long run as with a good status score the loans available to you will be less expensive.
It is never too late to begin to improve your bad status score, being approved for a loan by a bad credit lender and repaying it on time can help you to improve your credit score. Non payment of a loan from bad credit lenders will have a serious negative impact on your credit score, therefore the decision to apply for a loan should not be on a whim and should be taken wisely.
PLEASE THINK CAREFULLY BEFORE SECURING LOANS AND OTHER DEBTS AGAINST YOUR HOME.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT.
ALL RATES VARY SUBJECT TO LOAN AMOUNT, LOAN TYPE AND STATUS.
REPAYING YOUR DEBT OVER A LONGER PERIOD OF TIME MAY INCREASE THE AMOUNT YOU PAY.
WARNING – LATE REPAYMENTS CAN CAUSE YOU SERIOUS MONEY PROBLEMS. FOR HELP GO TO MONEYADVICESERVICE.ORG.UK.