Where can I find loans for people with a very poor credit history?
As a rising number of people are damaging their credit rating by missing payments and getting into arrears, so there has also been a rise in the number of bad credit loan companies, which specifically provide loans for people with a very poor credit history.
If you have a poor credit history, there are various places you may be able to borrow:
- Lenders that specialise in lending to people with bad credit
- Mainstream lenders might offer you a loan but charge higher rates
- Find the best deals by comparing quotes
Things to consider when comparing loans for people with a very poor credit history:
- How much do you need to borrow?
- How much can you afford to repay each month?
- If you do not keep up with repayments you could damage your credit further
Loans for people with a very poor credit rating are cheaper if you can secure the loan against your home, because you are offering surety to lenders, and they know that if you do default, they can recoup their losses by repossessing your home.
Interest rates tend to be higher for bad credit unsecured loans than bad credit homeowner loans compared to those for people with good credit. However, they can be a way of improving your credit score if you manage your money effectively and prove that you can repay it on time. This can then make you eligible to apply for better deals on borrowing in the future.