Bad Credit Loan Companies
If you have an adverse credit history, having damaged it with late payments, CCJs or by getting into arrears, then you could still get a competitive loan from the range of bad credit loan companies that will offer credit but based on your personal circumstances and your credit rating.
There is a growing number of specialist bad credit loan companies as a result of the rising demand for competitive loans for people with a existing bad credit history.
Benefits of bad credit loan companies:
- They could offer better rates than mainstream providers
- People with bad credit can still borrow
- Bad credit borrowers can rebuild their credit score
Some people with bad credit simply would not be able to get a loan if there were no companies that specialised in lending to them, or they would be forced to borrow at a much higher rate of interest from a high street loan provider. The rates you are offered will depend on a number of factors, such as how much you need to borrow, over what period of time, and whether or not you are a homeowner.
Bad credit secured loans may provide a better option - depending on your circumstances - than bad credit unsecured loans because the lender's risk of the borrower defaulting on repayments is reduced. Lenders will also consider much higher sums on homeowner loans because they know they have a security over your property.
If you are a homeowner with an adverse credit history you must consider the fact that although securing a loan against your property will mean lower rates, if you do fall into arrears you could lose your home.
Drawbacks of using bad credit loan companies:
- They can charge a lot more than if you had good credit
- It can take longer to repay the loan because of higher interest
- You can damage your credit rating further if you default
How to find the best deals from bad credit loan companies:
- Decide how much you need to borrow
- Only borrow as much as you need
- Compare interest rates
To find the best deals available to you from a range of leading bad credit loan companies see a selection of loan deals in the table above.