Practical tips to help you improve your credit rating and avoid expensive high interest loans
With new loans hitting the market all of the time, there are more options for borrowers with a bad credit rating than ever before. However, not all of these options are a good idea. To avoid costly mistakes, take a look at our guide to the 3 worst bad credit loans in the UK.
Keep up to date with all of the relevant information relating to loans for bad credit by visiting - http://allcreditloans.net/bad-rating/
If you are unfortunate enough to have a bad credit rating, then you are limited in the loans you can take out as most high street lenders will not lend to you?
In the video below Jon highlights the 3 most dangerous bad credit loan options currently available in the UK.So what are the three worst types of loan we have found currently available in the UK:
Whilst many people would not think of a pawn shop as a type of loan, basically it is, and you are simply offering a personal possession as security if you do not pay the loan back.
So if you do not pay the loan back you will lose the item used.
Plus depending on the pawn shop you have used, borrowing this money could be very expensive, especially if you lose the item you pawned.
This industry has received a lot of press in the UK to the extremely high interest rates charged.
The Guardian reported in March 2013 one lender charging an interest rate of 16,734,509.4%!!!!!
So whilst this extremely high rate is unusual and most payday lenders charge between 2,000% and 5,000% APR, these charges are still extremely high and this is a very expensive form of borrowing.
The payday loan should be approached with extreme caution as they are very expensive. If you are considering a payday loan, please make sure you know exactly how much the charges are before you borrow and make sure you pay you back on time, otherwise this is when the costs really start racking up.
A loan shark is someone who lends money without the appropriate license issued by the Financial Conduct Authority.
Typically they charge very high interest rates, do not issue paperwork, and will use illegal action such as intimidation and violence to collect the money they have leant.
AVOID LOAN SHARKS AT ALL COSTS!!!!
If you think a money lender is operating without the correct FCA authorisation you can speak to the Illegal Money Lending Hotline on 0300 555 2222.
Or report a loan shark at: