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Practical tips to help you improve your credit rating and avoid expensive high interest loans

Why Applying For Loans For Bad Credit Direct With Lenders May Not Be The Best Move

The bad credit loans market has been flooded with new lenders in recent years, most of which people will not have heard of.

It is therefore very difficult in this market to know which lenders are good and which are not so good!

In this article we explain why it is good to go through a third party company such as Clear Credit, who have already done the hard work in terms of finding a panel of professional lenders, plus making the application process streamlined and easy.

Increasing Need to Borrow

Research by the debt charity Step Change and the Children’s Society in Hull recently highlighted some frightening findings.

Matthew Read, chief executive of The Children’s Society, said:”Families in Hull are increasingly relying on debt as a way to make ends meet. With little savings to fall back on, it can take just one unexpected setback – like illness or being made redundant – to tip a family over the edge and into a debt trap that can feel impossible to escape from.”This is a trend which is echoed across the country and has seen a number of enterprising lenders flood the market with a huge number of innovative new loans aimed specifically at borrowers with mounting debt and a falling credit rating.

Which lender should I trust? – try and get a presonal reccomendation

If you have not taken out a loan before, especially with a bad credit rating, then it is difficult to know which lender to go with.

It is especially difficult to get personal reccomendations, as typically people so not tell each other when they are having to take out emergency loans.

Though if you do know people who have a bad credit rating and have had a good experience with a lender, then this is always a better start.

shark with a briefcase of moneyThe worst that could happen – Loan Sharks!

The worst case scenario would be to end up borrowing from a loan shark. Whereas some bad credit lenders can be very expensive, loan sharks are a different proposition altogether.

They’re unlicensed, they break the law, often go knocking door-to-door and at worst use highly questionable methods (including violence and threats of violence) in order to get their money back.[vc_message color=”alert-warning”]If you have any contact with a loan shark, please report them on 0300 555 2222 (you can also text LOAN SHARK and lender’s details to 60003, or visit the Government’s Report a Loan Shark page).

Avoid the risks and do your research

The best way to make sure you do not end up borrowing from a ‘bad’ lender, is to make sure you do your research.

So on top of asking friends and family for reccomendations, there are plenty of lenders on-line, though you need to make sure they

  • Have a Credit Consumer Licence (CCL)
  • Have reasonable fee, charges and terms and conditions

It is worth spending a few hours researching the different lenders, and summarising the differences between them.[vc_message color=”alert-success”]

Let someone us do the hard work for you

Clear Credit has already done the hard work for you by putting together a panel of reputable and fully accredited lenders.

Rather than researcing lenders individually, by using the services of like Clear Credit, you will have the chance to submit a single application to a number of lenders resulting in the receipt of a variety of no-obligation loan offers from which you can choose.

Clicking on the Loan Calculator will allow you work out just how much you can afford to borrow and then filling in our easy to complete application form will allow you to simultaneously submit your form to a number of the UK’s best bad credit lenders.

Jon Edward
Jon Edward
Passionate about helping people find options, when on first glance there do not appear to be any.

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