- Unsecured & Secured
- Options inc. no guarantors
- Loans: £100 to £75k+
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- Tenants & Homeowners
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If you're having problems getting the loan or credit you need then you will have to consider new or different options. Below we summarise the main loan options for people who have a poor credit rating.
You can also find out more about the implications of having a bad credit history.
When you've got a credit rating issue you need to be prepared to:
I you've been turned down by lenders then you should look at these options. May be there's something here you've not considered. May be you could get a loan after all.
Keep in mind that if your credit score isn't brilliant that you may need to "offer" a lender something to reduce their risk. Often that will be an asset as security, or it could be getting someone to guarantee to make your repayments if you are unable to.
If you either can't offer a valuable item as security (e.g. house or car) or simply don't want to then your best option could be a personal loan (also called an unsecured loan because there is no secured asset).
Personal loans are typically quoted based on personal circumstances. So the cost of the loan will reflect your credit rating. Expect the APR% to be higher than you might like, but it will reflect the risk the lender feels exists. It is possible to reduce this risk and get a lower rate APR% if you can offer a guarantor. We work with a wide panel of guarantor loan lenders. However, if you can't or don't want to provide a person to guarantee repayments then we have "no guarantor" lenders too.
If you own the home you live in and have a mortgage then a secured loan (also known as a homeowner loan) is an option worth considering. And a secured loan could also be a sensible alternative to remortgaging.
A vehicle is another asset that lenders will consider using as security. If you own your car (most types of car finance mean you won't) then there are logbook loan lenders who may lend to you.
Rates may be more reasonable than for an unsecured loan with homeowner loans being the most advantageous. These sorts of loans are also often used for debt consolidation purposes.
Needing cash to cover a short term "blip" and having a credit problem often go hand-in-hand. But given that these loans are repaid quickly the biggest issue for lenders tends to be ensuring the loan is affordable over the coming weeks or months. They are likely to me more interested in your income and outgoings than is your credit past.
You could consider any of the following loan options. Payday loans should be considered only ever for the truly short term. Doorstep loans and instalment loans are more viable over a number of months. Doorstep loans may sound old fashioned but they do have a number of advantages.
People often turn to car finance companies precisely because they have credit rating problems. While 80%+ of new cars are financed this way (often through the dealer) it's also readily possible to buy a used car in the same way. We work with Zuto, the UK's largest car finance broker, to provide credit if you need to replace you car - used or new.
The ultimate goal of anyone with a credit file containing arrears, defaults, CCJs or whatever is to gradually clear the decks and get everything on a fresh, firm footing. Rebuilding your credit status takes time.
Successfully repaying any form of loan or finance will contribute to improving your situation. But there are also credit cards specifically designed to help you in the credit rebuild task. The Vanquis credit card is one of these.
When it comes to getting you your bad credit loan our online service is second to none. In fact Solution-Loans.co.uk has scored based on 262 ratings & 41 user reviews for its poor credit loans service.
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