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Many lenders are willing to give bad credit loans to people with a history of debt problems. Online bad credit loans offer a simple way of shopping around from the comfort of your own home and enable you to compare prices without pounding the streets. Many lenders provide bad credit loans to individuals with credit problems, such as people who have defaulted on payments or have a County Court Judgement (CCJ).
There are many brokers on the internet who offer bad credit car loans, bad credit personal loans, bad credit mortgages and poor credit personal loans, to name only a few. Invariably, poor credit loans for any purpose will be secured against the value of your home. More...
Never lose sight of the risk when shopping around for the best poor credit loan deal.
Mortgage lenders had used credit scoring at the final stage of loan applications, after calculating multiples of income levels, in order to decide on a level of borrowing. Recent developments, however, have seen the reverse. A mortgage lender is now likely to undertake a credit scoring first and on approval, offer the applicant anything up to 6 times their income.
Before applying for a loan it’s a good idea to obtain your credit report so you can check it for accuracy. If there are any errors on your file, you can have them removed before applying for credit. Vist How to Correct a Credit Report for more details.
Poor credit mortgage applications are common in today’s financial climate. If you have bad credit there are many providers who have specialised mortgage packages available. First time buyers with bad credit can obtain mortgages of up to 85% so shop around to compare prices.
If you have a poor credit history and want to apply for a loan, there are generally two types of poor credit loans to consider – secured and unsecured.
Each lender will evaluate your risk according to their unique credit scoring system. Your level of debt, credit score and value of your home will be taken into account prior to offering you a bad credit personal secured loans. The interest rate as well as amount you can borrow will be decided on the outcome of your credit scoring criteria. Unless you can provide any other asset of significant value, any bad credit loan you are offered will be secured against your home.
Having a current account or mortgage with a particular lender can add weight to your application.
Finding a lender who will offer an unsecured loan to someone with bad credit is difficult but not impossible. There are financial companies who specifically cater for this group of borrowers, however interest rates are extremely high. If eligible for an unsecured loan, interest rates of 25% APR plus can be expected. Interest rates in the late 20s are also fairly typical and reflect your ‘high-risk’ status.
See our loan comparison tables where our lenders specialise in giving personal loans even with bad credit history.
If you have been refused credit but believe you have a reasonable credit rating, your best hope of obtaining a personal loan will be with interest rates touching 30%. Failing this, you may be able to borrow at a high-risk interest rate of up to 50% or more. There are companies who deal specifically with tenants with bad credit, so finding a loan is not impossible.
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