Poor credit rating is not an end of the world. But finding loans with bad credit score may look like one. Although mending credit report is more difficult than building good credit history, it is not impossible to minimise the red flags from your credit profile. In other words, there are time tested ways to build credit history and improve your credit score.
Common hassles faced with poor credit
Owing to bad credit rating, most people face low loan eligibility. With low score you are considered as a risky borrower who may fail to repay loan. Anyone who seeks bad credit loans fear following:
- Loan Rejection.
- More Red Flags owing to loan rejections.
- High Rate of Interest and additional charges on bad credit loans.
- Loss of collateral in case of nonpayment.
- No Guarantor to support the application.
Besides these hassles, the biggest concern is how to locate a bad credit loan.
How to find bad credit loans?
Whether you need short term or long term loans in UK no guarantor can be relied upon for the same. For, it is not easy to rope in a guarantor to share the loan responsibility when you have low credit worth. You would need professional assistance from an FCA authorised loan broker. They work as mediators between lenders and borrowers and are experts in locating tailored loans for varied credit needs.
To get access to available loans, all you need to do is fill a form online on a broker’s website. They would contact you and share the available deals. You can compare and choose one according to your specific needs.
Is there a Cheaper Bad Credit Alternative?
In case you want low cost alternative consider applying for secured homeowner loans despite bad credit. Being a secured loan against your home you would get a better rate of interest. Despite the poor rating you can find normal interest rate on home owner loans.
Homeowner loans are additional loans raised against residential property. Irrespective of the current mortgage the new loan is raised on balance home equity owned by the borrower. You may or may not avail the same from your current mortgage lender. The interest rate and charges of new loan are completely independent from the previous loans.
Thus it is more hassle free and cheaper to borrow secured homeowner loans for bad credit. Whether you need funds for home improvement or to replace your heating equipment or boiler, or for some other unplanned financial emergency you can use professional help to find the quick loans for the same.
Things to keep in Mind
Before availing additional loans always keep following things in mind:
- Check the credentials of your loan partner. It is important to deal with FCA regulated loan brokers only. For a lot of loan sharks are also active in the market and you should be careful to not deal with one.
- Borrow the loan if and only if you could ensure the repayments. Be it a weekly instalment or monthly instalment you must have a repayment plan to ensure the timely repayment.
- Bad credit history can never be eliminated from your credit report. However you can fade it by building the good credit. The additional loan should be seen as an opportunity to build good credit history. Thus always ensure the successful maturity of loan beforehand.