Practical tips to help you improve your credit rating and avoid expensive high interest loans
This all too common problem can now be easily addressed by exploring the bad credit loan market.
The following article has been designed to highlight the top 3 options to help make sure that you do not make costly mistakes by applying for the wrong loan!
The short answer to this is no.
Loans for people with poor credit are typically available from alternative credit providers (i.e. those who provide loans or credit cards to people who have been turned away by mainstream lenders) who specifically target borrowers with a poor credit rating with their products.
These lenders have made a variety of different loans available to anyone with a poor credit rating, with payday loans often grabbing the headlines.
For additional information relating to credit ratings and why they are so important, please take some time to check out this recent Investopedia article – The importance of your credit rating
The most obvious and affordable option for bad credit borrowers is often one that is completely over-looked.
Turning to family or friends for a loan can often provide the ideal solution to short term financial issues.
Potential embarrassment or worries about future problems are common reasons for bypassing this option but there are definite ways around this.
Offering to make interest payments on any money borrowed or signing a loan agreement are 2 options which can help to provide peace of mind for both parties.
The Money Advice Service recently highlighted some of the pros and cons of borrowing from friends and family. To see what they had to say, please click on the following article: ‘Should you borrow from family or friends?‘
If your family or friends would like to help you but cannot or will not lend you the money personally, a guaranteed loan may offer the perfect alternative.
Guaranteed loans work by offering anyone who can find someone to back their loan application the opportunity to apply for a loan of typically up to £10,000.
The person backing your loan will not be expected to make any payments unless the borrower defaults on payments.
Doorstep loans are typically aimed at borrowers who wish to take out a relatively small loan of between £100 and £500.
As implied in the name, doorstep loans work by having a designated agent of the lender coming to your home on a regular basis to collect the repayments in person.
If the answer is no, we highly recommend visiting the Checkmyfile website to obtain the UK’s only multi-agency credit.
Once there you will be offered two options designed to provide you with a comprehensive overview of your credit report.
You can either sign up for a one-off 30 day FREE Multi Agency Credit Report , or alternatively if your free period has expired, you can order a comprehensive credit report for a single payment of £19.99.[vc_message color=”alert-success”]
Let us do the hard work for you by submitting a single easy to complete application to multiple lenders with the click of a button!
Our Loan Calculator below will help you to work out exactly how much you can afford to borrow and our application form will allow you to submit your application to the UK’s best specialist bad credit lenders.