Bad Credit Loans are not as expensive as you might think!
If you have a bad credit history then it is safe to assume that you are likely to pay more for a loan or mortgage and may need to apply for a specialist loans aimed to help people in your circumstances. These are refered to as bad credit loans.
Even though the credit crunch has made bad credit loans and mortgages in the UK slightly harder to obtain, the rates have not gone up as much as many people think and there are still plenty of lenders willing to give you a second chance.
You’re Credit File and Bad Credit Loans
Most lenders will check your credit file with a credit reference agency before deciding if you are the kind of customer they would like to lend money to. This credit file contains details such as previous CCJ’s (county court judgments), mortgage arrears, defaults and IVA’s and is often used to determine the interest rate at which they will lend you money.
Your credit file also contains details about any personal loans you have and any recent credit applications which you have made that have been declined. Having a number of declined credit requests in a short amount of time can damage your overall credit score and can make obtaining loans or credit even more difficult in the future.
Using a loan broker can protect your credit rating.
Large loan brokers such as Decisionloans.co.uk have access to the UK’s top lenders and hundreds of loan plans including low rate loan plans designed to help people with bad credit, arrears or CCJ’s’s. Because brokers have access to the different criteria for each plan, they can find you a loan that you will be accepted for with just one search, reducing the likelihood of you being declined.
A search includes both unsecured loans for both tenants and homeowners and secured loans for homeowners and in general a search can find bad credit loans that are not too expensive.
Homeowner Loans can be cheaper.
While brokers such as Decisionloans.co.uk are able to source very competitive unsecured loans available for tenants, homeowners are in an even stronger position! Lenders often offer more favourable terms to people who own their own homes, meaning your credit rating becomes less of an issue. In light of the credit crunch many people in the UK (not just people with bad credit) who would previously have taken unsecured loans are using secured loans as a way to consolidate their debts.
Secured loans can help you get out of bad credit situations.
If you have bad credit a loan to reorganise and consolidate your finances can really help – an unsecured loan is great for both tenants and homeowners wishing to do this.
However a secured loan will allow you to extend your repayment term by as much as 25 years. Many people with bad credit use this extended loan period to bring their total monthly finance repayments down. This gives them time to sort out their credit problems and when their financial situation has improved they can refinance to bring down the cost of the loan even further.
If you are a tenant or a homeowner and would like any help with either an unsecured or secured loan or a any advice on bad credit loans please complete the form at www.decisionloans.co.uk