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What is a Bad Credit Loan?
If you have bad credit but need a loan there are lenders out there that specialise in offering loans for people with bad credit. Bad credit loans are especially designed for those who have been turned away by conventional lenders because of their credit history. These loans are available to all regardless of their financial past, whether you have bad, little or no credit have CCJs, defaults or have been blacklisted. When you take out a bad credit loan you can generally take out more money for more time compared to a payday loan. You will also find that these loans are much more flexible.
Rebuild your credit rating
A great aspect of a bad credit loan is that many of them come with credit rebuilding facilities. This means that by using the loan properly, and making your repayments on time it can help to repair the damage to your credit report which will improve your future chances of borrowing. With the right lender, responsible repayment of a bad credit loan can result in improved rates and conditions over time.
What are the risks?
It is important that you remember that with any loan there is an element of risk involved and if you fail to meet the terms of the loan you could find yourself in a debt problem. With bad credit loans you will find the interest rates can be considerably higher when compared to other types of loans. This is because again the lender sees you as more of a risk. Because you are considered to be more of a risk the exact amount that you can borrow may depend on how bad your credit rating is. It is also worth remembering that if you do not repay the loan you could end up worsening an already low credit score.
Should you go with a broker or lender?
Providers of bad credit loans fall into two categories: brokers and lenders. Bad credit loan lenders will lend you the money directly whereas a broker will find a lender for you. Brokers therefore, have a wide variety of quotes which gives them the opportunity to help people from different financial backgrounds. With a broker you are more likely to get accepted for a loan because they collate different lenders and choose the right loan for your needs. However, brokers often charge a fee for using this service on top of the interest you will pay on the loan which can be expensive.
If you are considering a loan it is worth deciding whether or not you want to use a broker or a lender. Use the table above to fully compare whatís available and always read the terms and conditions thoroughly.
What are the risks associated with bad credit loans?
Bad credit loans are not a long term solution for financial problems so you must ensure you are fully aware of the risks before you commit to a bad credit loan. There could be alternatives that are more appropriate for you so ensure you read the terms and conditions carefully.
05 February 2013
Which Way to Pay
If you are having trouble getting credit from the banks then remember that these days this is a common problem.
27 September 2012 11:00am
Which Way to Pay
New Product! With Lenders Direct, you are just a few minutes away from finding your ideal loan from the UK's biggest selection of exclusive loans and lenders.
30 July 2012 17:30
Which Way to Pay
New Product! Now available at Which Way To Pay, Loan Solutions offer Bad Credit Loans, Payday Loans, Consolidation Loans, Unsecured Loans and Secured Loans. Whatever your financial requirements they can help find the one solution thatís right for you!
25 June 2012 14:30
Got a Bad Credit rating and worried about not being able to get a loan? Well there is no need to panic, these days there are many of you with bad credit histories so there is now a financial product available to help you ensure a loan. A bad credit loans are around to accommodate those of you with negative credit history.
10 May 2012 11:00am
People with bad credit will often struggle to get approved for the money they want or need through most banks because are unwilling to lend to people with any less than a perfect financial past. However, there are bad credit loans special loans offered to those who have been turned away by conventional lenders because of their credit history.