Bad credit and need a loan? Choose your lender wisely
Being Constantly Declined for a Loan” Adverse Credit” Poor Credit Score”
when you have a bad credit rating can be disappointing and frustrating. It can also have a worsening effect on your credit rating. Therefore if you have been applying for a loan and are constantly being declined you are prolonging your bad credit rating without securing the finance that you need.
Because many UK borrowers do have a bad credit rating but still need loans there has been an increase in lenders that are willing to accept loan applications from those with a bad credit rating.
These lenders have a different acceptance criteria than that of high street banks, in order to cover their own risk of lending to you, they do come with higher interest rates, which means that overall the loan will be more expensive. However this does not mean that they will automatically approve a loan to you, it has to be proved that you can adhere to your credit agreement and repay the loan on time. If you do not repay your loan on time, your credit rating will be further damaged and put you back where you started with an extra debt to try and settle, which in turn will prolong your bad credit score.
Because of the increase in need for ‘bad credit loans’ the easiest thing to do to find a lender is to tap ‘bad credit loans’ into your preferred search engine (Google / Bing / Yahoo etc). This will give you a host of search results displaying lenders that accept applications from those with a bad credit rating.
Once you have had a browse, then use the search engine again to search the loan company name, also check review websites to see what other customers say about the companies services. Once you have found a lending company that you are keen on, visit their website and apply online. Applying online is usually fast and easy, with decisions given there and then. In some cases it will be likely that on application a loan advisor will call you back, therefore it is always wise to have your phone handy.
If you are approved for the loan, please ensure it is repaid on time, doing so will have a positive effect on your credit rating, which means cheaper finance options available to you in the future, should you need them!
Please ensure you steer clear of any lenders that ask for your bank details or for any upfront payment, these ‘companies’ are often fraudsters, that take your money and run. If this has happens to you please inform your bank from where you made your payment, and contact your local citizens advice bureau as soon as possible.