When a bank or other financial institution is deciding whether or not to lend to you, your credit history is one of the key factors they take into consideration.
If you have a bad credit history based on things that have gone wrong financially in the past, or if you're yet to build up a credit file, there are still multiple providers who can give you access to loans.
How Your Credit History Can Affect What you can Borrow
There is no single credit scoring method applied by lenders. Although scoring methods often take stock of similar things, like the total amount of credit an individual owes and their repayment track record, lenders also note other factors. These may include how long you have been at one address, your age, marital status, whether you rent or own property, whether you have County Court Judgements (CCJs) and so on. These elements are analysed by lenders as they decide whether a product is right for you and how much they will lend.
Is a Bad Credit Loan an Option for Me?
While a responsible attitude to borrowing and a healthy credit history is ideal, a poor credit record does not automatically stop you from getting a loan.
Loan Choices for People with Poor Credit Histories
Some banks might be more prepared to lend if you have security to offer. This is no guarantee that you will be able to afford repayment, but it will help banks avoid losing money if you do not pay back the loan. Lenders might take property, such as a house, as security, and some lenders will take other assets, like a car or stocks and shares.
Guarantor loans involving a third party such as a friend, family member or colleague agreeing to pay the loan off if you don’t repay, are another option. And if you need to borrow a fairly small amount of money for a short time, short-term loans are open to those with poor credit scores.
Short-term Bad Credit Loans
Short-term loans from MYJAR can provide short-term funds between paydays. We only lend to people with regular income, but we will consider applications from those with poor credit scores.
No matter how you choose to borrow, the most important question is, “Can I realistically afford to pay back on time?” If you do not, your bad credit history could get even worse.
Warning: Late repayment can cause you serious money problems. For help, go to moneyadviceservice.org.uk