Bad Credit Loans

What are bad credit loans?

Bad credit loans are unsecured personal loans designed for people who have a history of problems with credit. For example:

• If you have missed loan payments in the past
• If you have one or more County Court Judgements (CCJ's) against you
• If you have an "un-agreed overdraft"
• If you have a history of late payments
• If you have moved jobs or addresses frequently

If any of the above applies to you, you may have great difficulty in obtaining credit or a loan. Applying for bad credit loans may be your only option, in fact.

Why is it so hard to get credit or a loan?

Lenders check borrowers out with credit reference agencies. These agencies keep a record of your addresses, loans, credit agreements, credit cards, contract payments such as cable TV and mobile phone payments, hire purchase agreements etc. They register any information that the companies you owe money to gives them, which means every time you make a late payment, the lender may register this on your credit file. So it's easy to sink into a spiral of a bad history if you miss a few payments.

So how can I get a loan?

Bad credit loans are available for people just like you. In fact, some lenders specialise in lending to people like you with a bad credit history or problems, so they are likely to be more sympathetic than, say a "high street" lender such as a bank or building society.

What sort of a deal might I get?

The bad news is that bad credit loans will generally charge a higher interest rate than other types of personal loans, because of the added credit risk that you present to the lender. Also, the amount of credit available will be less than you might have been able to borrow if you had a better credit history behind you. There's no way round these facts, but at least you can get a loan, and used wisely, you can get out of the situation in the future. Bad credit loans are like any other kind of loan in that if you pay them off regularly, you will start to get a good credit record! Plus, any debts you pay off with the loan will start to disappear from your record over time.

Contact Explore Finance today for details of bad credit loans. Our brokers are waiting, and we help thousands of people with loans every week. Apply online now.