Why Are No Credit Check Loans Helpful?

Posted in News About Loans For People With Bad Credit

If you have a bad credit rating, no credit check loans are a type of loan that you should consider. These loans are unsecured and range from £500 to £50,000, they do carry a higher APR rate compared to loans offered to people with a good credit history. The reason for this is because this type of loan is offered to someone who is considered a higher risk, however, by applying for a no credit check loan and meeting the repayments in a timely manner and in full means you will boost your credit rating allowing you to apply for lower rate loans in the future.

So, what are the main reason behind bad credit?

1. No History

One of the main reasons and one of the biggest reasons people get into bad credit is the fact that they have no history of borrowing money. Essentially this means that banks/lenders can’t predict how and if you will be with making your repayments. This is a similar case with new drivers, when you pass your driving test your insurance cost is very high, this is because you are new to the road and insurance companies do not know your driving behaviour and trends.

 2. Missed Payments

If you have borrowed money previously and missed your repayments or not paid in full this can affect your credit rating.

3. CCJs

County Court Judgements are when a person goes to court and appeals for money that you owe them. Although there may be some understanding cases where the payments has gone astray most of the claims are made because you simply have not paid someone.

 

If you are struggling to find a loan there are a few things you can do to get more information and also to improve your chances of getting a loan.

 

1. Find out your credit score

Look online for Experian or another credit check company, they will be able to provide you with a credit score and also ways to improve it

 

2. Open a bank account

The Secure Trust Bank, is a bank that help people with bad credit and by opening a bank account you can improve your credit score.

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