An estimated one in five British people have bad credit histories, and many of these people want to borrow money for various reasons – home improvements, a new car or in many cases, for debt consolidation.
In the past, it was very difficult for people with less than perfect credit histories to get a loan, but now, the market for unsecured bad credit loans has grown considerably, with more and more lenders prepared to lend money to people with bad credit.
Bad credit can result from:
- Missing mortgage payments
- A breakdown in a relationship or redundancy creating difficult financial circumstances
- County Court Judgement
But many lenders are prepared to look past these issues and lend the money anyway. To protect their own assets, when offering unsecured bad credit loans, lenders generally charge higher interest rates, although you may get a better deal if you are a home owner.
Use our FREE loan calculator to compare unsecured bad credit loans available.