Get loans for bad credit

 Bad Credit

Loans For Bad Credit

A loan for bad credit is a loan given to a person or business with a poor credit rating. Getting a loan with bad credit is not an easy task. Most big financial institutions will not give you a loan if you have a bad credit history. Loans for people with bad credit also charge higher interest rates because lenders use your credit score as a basis. If you recently defaulted on a loan, have a slow payment history, or if you have taken on too much debt, you may be charged more interest. Some lenders might not hesitate to turn your application down. Some lenders take advantage of persons looking for a loan with bad credit. They charge high fees and make it nearly impossible to dig yourself out of debt.

A secured bad credit loan is simply a loan given to somebody with a bad credit, which is secured by an asset owned by the borrower. If you apply for a loan with bad credit and you own a house, you can get a bad credit loan and use your house as loan collateral. It’s hard to get a loan with bad credit. Options are limited, and borrowing is more expensive. Two factors are inseparable once you get bad credit, higher interest rates and the requirement for additional security. Either one of these may be attached to your bad credit loan. Credit unions may be more willing to offer you a loan with bad credit. They’re more willing to look at you personally – as opposed to just looking at a credit score and the loan application. If you sit across the desk from a human being, you’re more likely to get a loan with bad credit. If you’re having trouble getting a loan with bad credit, you may need to put up collateral. By pledging something of value, your lender knows you’re serious and has a better chance of collecting some money. If you have equity in your home, you can probably borrow against it – but there are significant risks.

Bad credit loans are designed for people who have had issues with poor credit, have been blacklisted. These loans often referred to as ‘loans for bad credit’- are offered by brokers who specialise in loans for bad credit and can check hundreds of lenders on your behalf. Your credit may not be as bad as you think. If you’ve been told that your credit ruined your chances of getting a loan, make sure it’s true. There may be errors on your credit report. Once those are fixed, things may look very different to lenders. The interest rates for a bad credit loan are dependent on the amount of loan you applied for, the presence of collateral and your current income. Secured personal loans generally have lower interest rates compared to unsecured loans.  Lenders have different types of loans for people with bad credit. They can suggest an appropriate bad credit loan for you.

Why does a good credit score matter?

credit cards

Credit Cards

Like your family, you can’t choose your credit score. However, that’s where the comparisons with mum and dad end, as there’s plenty you can do to improve, maintain and find out more about your score – meaning you’re more likely to be accepted for credit cards, loans, mortgages and more.

No matter what you do, you’re tied inseparably to your credit score – it follows you round and dictates what you can and can’t have, whether you’re applying for credit, taking out a mobile phone contract or even renting a home. For many lenders, it’s the bottom line when it comes to making a decision about whether to accept your application.

Finding out your score
Due to the current economic climate, chances are you’ve seen plenty of adverts from firms offering to let you know your credit score. If there’s a free trial on offer, it’s worth considering taking it up, especially if you’ve got little or no idea what your score is at present. Of course, it’s up to you whether you want to continue with a paid subscription once the trial has run out.

Improving your score
While knowledge is power, being aware of your score is only half the battle. If it’s proved to be a nasty shock, you’ll want to look at ways of improving your creditworthiness. This isn’t an exact science and opinions differ on the best ways to boost your score. However, some obvious steps are bound to have some effect. If you’ve recently moved home, get on the electoral roll at your new address as soon as possible – checking these details is usually one of the first steps of a credit check.

Making sure you pay on time with your existing credit agreements is key, as is keeping within your credit limit. Opening several accounts at once is also considered a bad move, as lenders could be concerned that you’re set for a borrowing binge.

Maintaining your score
If you’ve got a good credit rating, don’t be tempted to rest on your laurels – a few bad moves and things could change quite quickly. Maintaining a good score also means that you’re more likely to have access to the best rates and the best credit card rewards, meaning you’ll pay less for borrowing the money you need.

Ultimately, being aware of your credit score and how you can keep it in good shape should be a lifelong commitment – which, to return to our original point, means you should treat it like your wife or husband rather than a blood relative.

How do you find a Low Rate Loan?

So you want to repair or renovate your home, maybe buy new furniture or appliances, maybe upgrade or repair your car, maybe buy a new home computer or enhance your educational level or something? Whatever it is that you plan to do during this recession period, rest assured it will cost you some money. While these things are all very important as they are part and parcel of life, you can make your dream come true by availing low rate loans. But how do you find such a loan in such tough economic times that we live in today? How do you choose the best low interest rate loans? And how can you be certain that they are the best and lowest rate loans in the market? Here is how you should approach the whole process.

Low Rate Loan

Low Rate Loan

First and foremost, check online for low interest loans. The internet has proven to be a very good source of affordable low interest loans. You only need to key in ‘low rate loans’ in your favorite search engine and you will be presented by thousands of results of websites that offer low rate loans. While most of the online service providers are genuine, it doesn’t mean there are not unscrupulous dealers out there. To be sure you are dealing with a genuine online loan provider, ensure the website is approved by the Better Business Bureau.

One way you can be guaranteed of a low rate loan is to check your credit score. This is because with a more than perfect credit score, lenders will reward you by giving you a less rate. Request for a free credit score report from independent credit score companies so you can check of any wrong entries in the report and ask for corrections immediately before you go out there and apply for the low interest rate loan. You might also want t ensure you pay up all your existing loans and debt so you can reduce your credit burden.

Be advised that if you have a bad credit rating you will automatically qualify for a high are loan as you are considered a high risk customer. In order to avail a low rate loan with a bad credit rating, you can ask a close friend or a close relative to be your guarantor when you apply for the loan. This way, at least the lender will have somewhere to fall back to should you default repaying back the loan.

You can also negotiate for a low rate loan. Remember there is very stiff competition in the loan market today and lenders are always ready to go to the extremes if only to earn your business. So, even if a loan appears to be a high rate loan, you can put your negotiation skills to test and start negotiating for lower rates. You could be very surprised by the savings you will get just by taking this action alone, besides, you have nothing to lose if you give it a try.

How do you find a Low Rate Loan?

So you want to repair or renovate your home, maybe buy new furniture or appliances, maybe upgrade or repair your car, maybe buy a new home computer or enhance your educational level or something? Whatever it is that you plan to do during this recession period, rest assured it will cost you some money. While these things are all very important as they are part and parcel of life, you can make your dream come true by availing low rate loans. But how do you find such a loan in such tough economic times that we live in today? How do you choose the best low interest rate loans? And how can you be certain that they are the best and lowest rate loans in the market? Here is how you should approach the whole process.

First and foremost, check online for low interest loans. The internet has proven to be a very good source of affordable low interest loans. You only need to key in ‘low rate loans’ in your favorite search engine and you will be presented by thousands of results of websites that offer low rate loans. While most of the online service providers are genuine, it doesn’t mean there are not unscrupulous dealers out there. To be sure you are dealing with a genuine online loan provider, ensure the website is approved by the Better Business Bureau.

One way you can be guaranteed of a low rate loan is to check your credit score. This is because with a more than perfect credit score, lenders will reward you by giving you a less rate. Request for a free credit score report from independent credit score companies so you can check of any wrong entries in the report and ask for corrections immediately before you go out there and apply for the low interest rate loan. You might also want t ensure you pay up all your existing loans and debt so you can reduce your credit burden.

Be advised that if you have a bad credit rating you will automatically qualify for a high are loan as you are considered a high risk customer. In order to avail a low rate loan with a bad credit rating, you can ask a close friend or a close relative to be your guarantor when you apply for the loan. This way, at least the lender will have somewhere to fall back to should you default repaying back the loan.

You can also negotiate for a low rate loan. Remember there is very stiff competition in the loan market today and lenders are always ready to go to the extremes if only to earn your business. So, even if a loan appears to be a high rate loan, you can put your negotiation skills to test and start negotiating for lower rates. You could be very surprised by the savings you will get just by taking this action alone, besides, you have nothing to lose if you give it a try.

The Statistics of UK Credit Rejection

Being rejected for a credit card or personal loan can have a detrimental effect on your credit rating, but if you have been rejected over the past 12 months, you’re not alone.

According to a survey of 2007 British adults (commissioned by Moneysupermarket.com and carried out by Opinium Research) a quarter of them were turned down for a credit card or loan.

Taking the total number of adults in Britain to be 49 million, the research claims that 36 per cent (17.6 million) have applied for credit, and therefore nearly 4.5 million (25 per cent) of those have been rejected for credit.

People living in the West Midlands, it seems, are most likely to be accepted for credit, as the figures reflect an 85 per cent success-rate for credit applications in the region.

UK Credit Rejection

UK Credit Rejection

Those living in London only had a 62 per cent chance of being accepted for credit though, according to the survey.

This infographic conveys the scale of credit-rejection across the country, broken down by age, gender and region.

The data shows that men are more likely to be rejected for credit cards or personal loans than women, as 30 per cent of the males who participated in the study said they had been rejected, compared to 24 per cent of women.

More than a third of 18-34-year-olds surveyed admitted they had been rejected for a credit card or personal loan, whereas just 12 per cent of the over-55’s said they had been rejected.

Making several applications for credit within a short space of time can be detrimental to your credit score. Each time you make an application; the lender makes a check of your credit profile and leaves a ‘footprint’ of the check, which is then visible to other lenders when they make subsequent checks.

It is believed that people with more credit applications tend to carry a higher credit risk, creating a catch-22 situation.

On the other hand, having no discernable credit history can also go against you in the credit application process. When lenders assess your application, they are trying to judge your ability to pay back the amount you are borrowing. If you have no credit history, then the lender has one less point of reference to aid them in making that decision.

For a small fee you can check your credit score online with Equifax or Experian to make sure your credit report is up to date and is accurate. If you notice any discrepancies you can contact the lenders in question to have the mistakes rectified.

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