Bad Credit Loans Guide

Getting a loan with bad credit

Very often people who, though no fault of their own, end up with bad credit which then restricts their access to credit cards and personal loans.

A person’s credit worthiness is measured by their Credit Score this is a number between 1 and 1000 which indicates to a lender whether that person is likely to make their repayments on that credit line. A high score is an indication that a person will repay their debt, a low score indicates that that person may not repay their debt which a lot of people refer to as having bad credit.

Lenders calculate a person’s credit score using calculations based on information supplied by credit reference agencies, there are two credit reference agencies in the UK Experian and Equifax.

Your credit record held at these two agencies will include details of any previous credit agreements (including how many you have made a late payment), your record on the electoral roll and the number of times in recent months a lender has accessed your credit record.

Factors that result in a low credit score and therefore bad credit are the presence on your credit record of the following:

• County Court Judgements (CCJ’s)
• Missed or delayed payments on previous credit agreements
• Defaults on previous credit agreements
• Bankruptcies

You may also have a bad credit score simply because you do not have enough information on your credit record. Often if you have never entered into a credit agreement with anybody then your credit score is blank which will translate into you having to take out a bad credit loan even though you do not technically had any bad credit

If you have applied for credit though multiple lenders in a short time period this will show up on your credit record, some lenders view this as negative and it implies that you are desperate for the credit and are therefore in some sort of financial trouble.

Having a bad credit score does not mean that you will not be able to get a personal loan, on the contrary there are many companies that specialise in lending to individuals who have a bad credit score or those who think that they are classified as bad credit.

Learn about:

Cahoot Fixed Loans
Flexible cahoot Loans
Personal Loans
TCahoot Unsecured Loans
Alliance and Leicester Loans