Finding a poor credit loan lender is important if you cannot get a good deal from a mainstream lender as a result of having an imperfect credit history. There are specialist poor credit lenders that will provide loans to people even if they have an adverse credit record, as a result of going into arrears with their debts, having CCJs,or regularly missing payments.
When you apply for credit, the company you apply to will do a credit search to determine your creditworthiness – so if you have not been a good borrower in the past, this will show up on your credit history. They will use this information to decide whether or not to lend to you, and if they do, at what rate of interest.
How to find a poor credit loan lender
- Compare quotes from different companies
- Do an online comparison to find the best deal for your circumstances
- Read the small print
If you are a homeowner, then finding a poor credit loan lender and a competitive interest rate will be easier than if your only option are bad credit unsecured loans. If you take out bad credit secured loans, you are securing what you borrow against your home and if you can't keep up payments, the lender can take your home to cover its losses.
Secured loans are less risky for the lender, meaning they will be more likely to offer lower rates and longer repayment periods. However, if you are not prepared to risk your home, an unsecured loan is likely to be your best option. However, you will need a relatively good credit score to be eligible for an unsecured loan.
Before finding a poor credit loan lender you should:
- Check mainstream lenders first – they might be able to offer you a better deal
- Think about how much you really need to borrow
- Work out how much you can afford to repay each month