| Obtaining a loan or any type of finance can be a | | | | secured the loan you can start repairing your |
| real challenge. If you have a bad credit history and | | | | adverse credit history by making regular, |
| you are trying to get a secured loan or buy a | | | | payments on time. It will take a little time to |
| house, you will usually have to do even more | | | | improve your credit history, but it will happen. |
| work to find a lender that will be prepared to lend | | | | What Type Of Loan Can You Get? |
| you the money. You will also have to pay a higher | | | | You have the option of going for a secured loan |
| interest rate than someone with a clean credit | | | | or unsecured loan. Unsecured loans are more |
| history. | | | | difficult to get because you dont put up collateral |
| What Is Credit History? | | | | as security for the loan. This is risky for the |
| Before you go looking for loan, it is crucial that | | | | lender so expect them to require more stringent |
| you know more about your credit record. This is | | | | loan terms in this situation. |
| a recording of all your past financial commitments | | | | Secured loans, on the other hand, require you to |
| and contains information about your repayment | | | | provide some form of asset as collateral. Most of |
| reliability and the total amount of debt you are | | | | the time this means you will secure the loan with |
| carrying. | | | | your house. The amount of money you can |
| Lenders look at this record to determine your | | | | borrow and the interest rate you will pay are |
| credit worthiness, usually by assigning you a credit | | | | influenced by your credit history, your total |
| score. The lower your credit score the less likely | | | | amount of debt, and your homes value. |
| a lender is to grant you a loan. | | | | Different lenders weight these items different |
| How Did Your Credit History Go Bad? | | | | ways, so be sure to check with several to find |
| Your credit history is an ongoing record of | | | | one with a product suited for you. |
| information about you and your finances, so | | | | Where Do You Look For A Bad Credit Loan? |
| anytime you miss a payment it is captured in the | | | | Before you submit any loan enquiries, you need |
| file. This is the same if you have ever defaulted | | | | to research a number of different lenders and |
| on a debt or failed to fulfil a financial contract. | | | | brokers. Find out about their interest rates, any |
| Everything is captured in this record, missed | | | | special loan terms they may require, and any |
| mortgage payments, repossession, bankruptcy, | | | | other specifics about their loan process. |
| CCJs, IVAs, credit card defaults, etc. | | | | You can do all the research you want, but be |
| Credit reference agencies collect other information | | | | careful not to submit a large number of loan |
| about you, such as changes in employment or | | | | enquiries over a short time period. This kind of |
| address. If your record shows that you make | | | | activity can actually damage your credit history |
| such changes frequently this will also lower your | | | | further. |
| credit score. | | | | Generally if you have an adverse credit history |
| Will You Ever Qualify For A Loan? | | | | the best way to source a good loan is to use an |
| Generally speaking you will still be able to get a | | | | independent broker. Make sure that they are not |
| secured loan or mortgage, but there might be | | | | tied to one lender but have access to a large |
| certain restrictions on your borrowing. Because of | | | | panel. Find out what fees they will charge and |
| todays culture of debt there are an ever number | | | | what are the reasons for charging these fees. |
| of increasing lenders who specialise in loans for | | | | There are a large number of both secured and |
| people with bad credit. Just keep in mind that you | | | | unsecured loan brokers in the UK, some are |
| will probably be charged a higher interest and | | | | ethical others not so much, so make certain that |
| maybe offered a lower loan amount. | | | | you speak to as many as possible. |
| The positive part of this is that once you have | | | | |