Bad Credit Personal Loans - Loans for people with less than perfect credit records.

If you have a history of bad credit, you may find it difficult to borrow money from your bank. However, there are many lenders that specialize in lending money to people with bad credit records or lower than average credit scores. But they may ask you to provide some form of security for the loan such as your home. Also they may charge you a higher APR rate. Remember if you use your home as security for a loan, you could lose your home if you fail to keep up with repayments. If you’re having credit problems, it’s a good idea to work on improving your credit before borrowing more money. Bad credit loans can be very expensive.

If you've missed credit card payments or if you've been late making payments on a loan, higher purchase item or mortgage, your lender may have reported your late payment to the credit reference agencies. Credit reference agencies such as Experian and Equifax collect and keep information on details of credit agreements, arrears and defaults on credit, the number of cheques you've had bounced, County Court Judgments (CCJs), electoral role information, etc. When you apply for a loan, bank account or credit card, a lender may use this information as part of its credit scoring process in order to decide whether to lend you money.

If you have been turned down for a loan or credit card, your first step is to ask the lender to tell you the main reason why you were declined. The lender may ask you to contact a credit reference agency that they use (Equifax/Experian). Check your credit record with Equifax and Experian and find out what records they have on your file. You need to inspect the records thoroughly and look for any errors or outdated information.

If you think you have been rejected for credit because of some outdated information on your credit file, contact your local council to update your electoral role information - particularly if you've just moved house.

County Court Judgments (CCJ's) are kept on your credit file for six years from the date of the judgement. If the judgement was paid or settled in full within a month of the judgement being given, then you can contact the court to remove the record.

If there is a particular reason or there are special circumstances why you got into arrears in the first place, the credit reference agencies have a facility that allows you to attach some notes (explanatory notes) to your file to explain your situation.

To inspect your credit record with Equifax or experian your can write to them or visit their websites for more information and to sign up for their online service. Both agencies now offer services that allow you to check your credit record online.

Addresses:

Consumer Help Service, Experian Limited, PO Box 8000, Nottingham, NG1 5GX
www.experian.co.uk -

Equifax, Credit File Advice Centre, PO Box 1140, Bradford, BD1 5US
www.equifax.co.uk -

If you want to repair a bad credit record you'll need to learn to manage your credit responsibly. This means paying your bills on time and using credit conservatively. You should also pay off debt instead of moving it around. Aim to keep balances low on credit cards, store cards and other similar types of credit.

There are many companies that offer personal loans to people with bad credit. However, almost all of them may require you to secure the loan on your property, car or home. Also the interest rates that they charge are very high. Bad personal credit loans are a very expensive way to borrow money.

Disclaimer: All information at this site is provided for information purposes only. Do not base any finance related decisions on this information. This is not financial advice and should not be used as such.