Everyone tends to have to make an expensive purchase at some point. It may be you need a new car or need to so some emergency repairs to your home such as a new roof or boiler. Whatever the reason, it is not always easy to get credit especially if you have a bad credit history. This is worst now more than ever due to the global economic difficulties.
However, even with the credit crunch it is possible to find responsible companies that will offer you bad credit loans even if you have a poor credit score. It may not seem easy at first but if you look around there are bad credit loans available, even if you have been turned down by the usual money lenders such as banks and building societies.
You may have had credit problems previously, got into mortgage arrears, defaulted on repayments or have CCJS. Some people struggle to get loans because they have never actually had credit in the past so have no credit history. This can be a very frustrating catch 22 situation, you simply cannot get your foot on the credit ladder, and you haven’t done anything wrong.
There are ways you can build up a credit history nowadays, including special credit cards but in the mean time if you need a loan and you have a bad credit history, you could struggle.
Bad credit loans can help you build up your credit score whilst giving you the money you need. So what are bad credit loans? They are unsecured loans, especially designed for those people who have bad credit history, so who may find it hard to get credit from the typical high street money lenders. The loan is just like any other in that you repay the money over a set time scale but are different in that the interest you pay is much higher because of the risk the money lender takes when they loan you the money.
With bad credit loans you can expect to pay interest ranging from anything from 30% APR to 182% APR, it may even be higher depending on who you borrow the money from. Bad Credit Loans are not intended for long term regular borrowing but for short term financial need. They should not be seen as a regular way of borrowing money and as they are so expensive you probably wouldn’t want to.
One of the good things about bad credit loans is that whilst repaying your loan you are building your credit score up again which should allow you to be able to access cheaper loans in the future.