Poor Credit Loan Approval
A Brief Guide to Poor Credit Loans
If you have bad credit, you’re going to find it harder to obtain a loan. It’s an unfortunate reality, but the reality of things nonetheless. Still, with millions of people in exactly the same position, there are plenty of providers on the market that are willing to offer poor-credit loans. And of course, there’s no time like the present to start doing something to restore life and lustre to your credit score.
What Is Bad Credit?
Every time you miss a repayment on any kind of loan, debt or hire-purchase agreement, it may be recorded on your credit report. The more of these negative entries you have, the more your credit ‘score’ suffers as a result. The lower your score, the more of a liability you are considered and the less likely you are to qualify for a standard loan or credit service.
There are also certain types of loans (such as certain consolidation loans) that can harm your credit report upon obtaining them. In fact, even applying for a loan of any kind and being refused can add another negative entry to your credit score.
Can a Credit Report Be Improved?
Yes, it can, but it typically takes time and effort. It’s a case of demonstrating that you are in fact a responsible borrower, by keeping up with repayments and ensuring you don’t put a foot wrong. This won’t result in an instant turnaround, but over time will see your credit score improving.
It’s also worth checking if any of the negative entries on your credit report have been made mistakenly or inaccurately. If this is the case, you should be able to request their removal or correction. In all instances, the worst thing you can do is nothing at all.
What Are Poor Credit Loans?
Put simply, poor credit loans are financial products created specifically for those with poor credit scores. They are largely similar to standard loans, though usually attach higher rates of interest and borrowing fees. Though comparatively expensive, poor credit loans give borrowers the opportunity to demonstrate that they can keep up with their repayment obligations responsibly.
Secured loans can also be taken out by anyone with a poor credit rating, just as long as they have the required collateral to secure the loan. In such instances, capital for most purposes can be obtained with a comparatively low rate of interest. Right now, UK Property Finance offer the industry’s lowest interest rate of 0.43%. This is unmatched anywhere and is the lowest recorded loan rate in the bridging loan sector. If you have the necessary collateral, poor credit doesn’t have to mean exclusion from the best deals.
Ask the Experts
Whatever you are looking to finance with a loan, it’s always advisable to first seek support and guidance from a financial professional. Speak to a broker to discuss the available options, along with how to secure the best possible deal without overpaying.
Poor credit doesn’t have to represent a brick wall – more an obstacle that can be overcome with a little proactivity.