A Bad Credit Record is Not Always the End With Regard to Getting a Loan
The economic situation that has now been with us for the past couple of years has affected people all over the Country. Some more than others. This has inflicted financial hardship onto a large proportion of the population either through the rising cost of living, or wage cuts or job losses.
The upshot of this is that people are now finding it harder and harder to keep up with their monthly repayments on borrowings that were probably taken out when things were a little bit more easy to manage. Payments get missed, bills get paid late and one thing leads to another. The effect of all this is that credit ratings get damaged making it harder for people to borrow in the future.
However, if this applies to you, then all may not be lost. Fortunately, there are lenders in the business that will look upon people with a poor credit history a little bit more sympathetically than others. Loan products are available for people that have experienced credit problems in the past.
You borrowing ability will always be dependent upon your credit history, although other factors are taken into consideration. Inevitably, any previous bad credit history will have an effect on this.
You may have experienced some problems in the past with missed payments but you have caught up with everything so you are unlikely to experience as much of a problem as someone who has collected a CCJ along the way. If you are a homeowner, you should be in a better position to get credit. A secured loan is the first option to explore as lenders are not so adverse to a little bad credit history as there is less risk involved for them. Trying to get an unsecured loan with and bad credit history is going to be pretty tough as lenders do not like lending to people with a history of bad credit, and for obvious reasons.
If you do not qualify for a secured loan, or it is not an option, then guarantor loans may be more suitable for you. Although these are unsecured loans, in order to borrow any money, you need to provide a guarantor, that is someone who promises to pay back the loan if you should default on the repayments. The guarantor must be a homeowner with a clean credit history, but it means that you would be allowed to borrow money regardless of your credit history. Guarantor loans are available to people of any residential status, meaning that tenants, students and people living with friends or relatives are open to obtain a guarantor loan.
So there you have it. So you might well have been refused credit previously, but if you look in the right places you should be able to find loans for people with bad credit.