Loan Options for People With Bad Credit
People With Bad Credit their Loan Options
Getting repeatedly refused by lenders for having bad credit when you need a loan can be a demoralising affair. Millions of UK consumers find it a struggle to obtain good value credit due to having a low credit score after facing issues in the past. There are lots of factors as to why you may have a bad credit score. You might have missed payments or obtained a CCJ as a result of defaulting on a loan or credit agreement. The reasons behind this may be down to genuine life problems like redundancy or a relationship break up. Either way it can be frustrating not being able to get access to that much needed cash injection for a new car, or mortgage due to your past financial difficulties. Even if you are now back on your feet and feel those issues are now behind you.
Now is the time to start rebuilding. Having bad credit registered against you is not ideal, but it does not mean you can’t get access to finance to start building your credit rating back up. There are a whole range of lenders who will consider your circumstances as they stand now, and be willing to offer you the chance to start to put right the wrongs of the past. You will be unlikely to be accepted by the high street banks, which in turn will be reflected in the higher rates you will be paying on the loan or credit card, but you will start to establish a record of good payment history, helping to restore lender confidence when you apply for further borrowing in the future.
This Road Can Be a Long One.
Details of your payment history stay on your credit file for 6 years, but the way you conduct your finances in the meantime can help towards showing lenders that your bad credit is in the past, and you are working towards becoming a low credit risk. It is essential you start to show sound money management by making all payments in full, and on time. Regardless of the APR you are offered for the new loan, ensure that you can afford the loan repayment comfortably now and in the future. The last thing you want is to start missing payment due to financial stress, as this will just add to the bad credit already on your report, and take you back to square one in an even worse position.
Free money management advice, and budgeting tools are available on the Money Advice Service website to help you along the way. Having bad credit does not have to be a dead end when obtaining loans, and credit cards. With a clear plan using all the available resources you can turn it around to truly put all your past financial issues behind you