I desperately need a loan but I have bad credit, what should I do?

need a loan but I have bad credit

We all need to borrow money from time to time, particularly when times are tough, however, accessing credit is not easy. Banks and credit unions are choosy about borrowers nowadays because they are trying to avoid bad debts which can dent their bottom line.

Before offering you a loan, lenders consider a number of factors before approving your application, but your credit card score is one of the most important. Credit card references such as Equifax, Experian, and CallCredit carry a version of your credit report. The credit report carries all manner of details about your financial history including credit cards, debit cards, mortgage, and any other loans.

When you’re applying for a loan, the lender will use the information on your credit file as well as your financial status to determine your credit score. Generally, lenders are less likely to approve your loan application if you have a bad credit history. This is because they believe you’re more likely to fall behind on repayments for the loan, mortgage, credit card or whichever type of personal finance you’re applying for.

Contrary to what most people believe, you don’t have a single credit score and similarly, there isn’t a credit blacklist. Each individual lender has their own way of calculating the score, which means you can be turned down by one lender but be successful with another. Additionally, there’re lenders who particularly lend borrowers with have bad credit scores.

Getting a loan with a poor credit history

If you have a poor credit history, it can be quite difficult to get a personal loan, but not impossible. In some cases, you might be having bad credit because you are in debt. Thankfully, there’re lenders out there willing to extend financial help to borrowers with less than perfect credit score.

You might not get the best interest rates, but they won’t disqualify you just because you have a less than perfect score. Along with your credit, lenders will consider other information such as your level of income and the presence of a cosigner with strong credit.

If you’re having trouble finding a lender who can offer you a loan with a less than perfect credit history in the UK for instance, there is help on the way. Platforms like Bad Credit Site (BadCreditsite.co.uk) can find you the cheapest lender in the UK likely to say yes to you regardless of your credit history.

BadCreditsite.co.uk have specialized lenders who can offer you a payday loan if you’re strapped for cash but you have bad credit. You also choose to attain an unsecured or secured loan whether or not you have a guarantor. There’re numerous lenders in the UK that will approve your application even if your credit ratings are bad and you don’t have a guarantor.

The bottom line

Getting a loan with a poor credit history in the UK is a possibility through the right broker. All you need is an understanding, specialized lender who can offer loans to customers with poor credit. A bad credit card score should however not be a permanent situation on your financial history. You need to take steps to improve your credit score, and this includes making timely payments and avoiding unnecessary debts. Also, be sure to pay other bills like rent and mobile phone bill on time too.

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