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Ideas For Bad Credit Loans

BAD CREDIT LOANS, DO YOU WANT ONE?

credit check spelled out on green and white scrabble tokensA clean credit record is the first requirement to get a loan in a bank. Even a small mistake like paying a day late will reflect poorly on your record and you can end up having a bad credit image. It will tell the bank that you are a high risk client and will not be able to pay the loan back, this will lead to a big denial from the bank.

FOR MOST BAD CREDIT MAKES LIFE IMPOSSIBLE
Bad credit limits your possibilities to get loans but also closes the door to other financial opportunities. It turns you into a risky client and banks do not like that, they like people that can make their payments on time. Building your credit back could take time but it is not an impossible thing to do. Do not be discouraged by your bad credit, there are opportunities by people in your situation.

TRADITIONAL BANKS DON’T WANT TO KNOW YOU
Banks built their business on a trust basis, if they do not trust then you are not good for them. Traditional banks run extensive background checks on sign stating very good credit score 740-799their clients and they will only give you any money if they are completely sure that you will be able to pay them back. However, if you have bad credit and need a loan, go to your bank first perhaps they have options for people like you.

TAKE CARE WHEN SHOPPING FOR BAD CREDIT LOANS
If the bank refuses to give you any money, then it is time to go to the unofficial institutions. There are hundreds of loan stores and loan websites where you could get a quick loan. They will not care if you have bad credit and will lure you in, but be careful, these establishments have high interest rates and if you fail to pay them you will fall into a debt cycle. Evaluate different options, make sure they are trustworthy, ask for past client’s opinions and then choose wisely.

DON’T BE UNTRUTHFUL
Do not lie about your income or your general financial situation, it will make you look worse in the eyes of the lender. Honesty will take you a long way, this also applies after you get the loan. It is easy to skip a monthly payment, you think it will not hurt but in reality will make you untrustworthy and you will not be able to get another loan in the future.

YOU WILL PAY A HIGHER INTEREST RATE
high interest rate spelled out on green and whit scrabble tokens lying on a yellow backgroundNo matter if you are getting a loan directly from the lender or from a website, the interest rates will be higher because you look bad on paper and the business must make sure that you will be able to pay and that they will benefit from the loan. In your position you can hardly argue about the terms and conditions but make sure that you find the best deal possible.

SECURED LOANS GET LOWER RATES
If you are a house owner or you have a car, you could use it to secure your loan. Having an asset gives the bank or the lender the guarantee that you will pay, they will be holding the documents of the asset until the debt is repaid entirely. A secured loan will usually have a lower interest rate and an provide longer repayment terms.

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Bad Credit Credit Card Guide

Credit Card Guide For Those
That Have Bad Credit

There is relief out there
If you’re the kind of person who has a bad credit rating, finding someone to give you credit can be tough. True, there are certain types of loans (called Bad Credit Loans) out there, but a loan is often seen as a ‘big deal’ – if it’s only small purchases or spending you want to cover, credit cards can certainly seem like an easier option. Thankfully, there are a number of bad credit credit cards available for bad credit individuals that could not only provide the credit you’re after, but even help improve your bad credit rating if used properly.

These companies may be able to help
While most companies have restrictions on who they give credit cards too, three companies – Capital One, Vanquis and Aqua – offer special credit cards for bad credit holders. The good news is that providing you’ve not been registered bankrupt in the last 12 months, are on the electoral roll and have some form of good credit in your history, you could be approved for one of these cards relatively easily. All three companies have extensive experience working with people who have a bad credit rating, so it’s likely that could help you if you’re need of some quick and simple credit.

Don’t rush in
Not surprisingly though, such credit cards come with a few catches. As already mentioned, there are criteria that need to be met before you can consider applyingword cloud with debt as the central word and sometimes, it’s things like not having a permanent address or not being on the electoral roll that can be responsible for a poor credit history forming in the first place. More importantly, however, is the interest rate tied to these cards – clocking in at between 35 and 40%, they’re substantially more expensive than more traditional cards which can potentially create more problems than solutions in terms of debt. That said, the credit limits on such credit cards are often restricted to between £150 and £1,000, making it difficult for you to go overboard with spending and get into trouble further down the line.

This is not a quick fix
As well as being a good source of quick cash for people with bad credit though, these credit cards can actually help repair a bad credit rating if used responsibly – regular payments can raise your credit rating and leave you with more options to get credit elsewhere. What’s more, the card providers often lower the interest rate and raise the spending limit if you can show responsible use of the card, so there’s the option for it to be a long-term source of credit rather than just a quick fix.

In Summary

Credit cards for bad credit…

credit score factors list aligned next to a coloured pie graph• Are offered by a select number of lenders

• Have higher rates of interest than regular credit cards

• Tend to have lower credit limits initially

• Have restrictions on the types of applicants they accept

• Can have their rates lowered and credit limits raised if you use them responsibly

• Are easy to apply for and can be approved quickly if you fit the criteria