UK BAD CREDIT LOAN QUOTATIONS

If you have a poor financial record you may find that it’s extremely difficult to borrow money. Lenders are reluctant to make arrangements with people who they consider to be high risk and whilst they will often lend it is usually at higher rates than that charged to those with a satisfactory financial record. Borrowing taken out by those with a poor financial history is often referred to as a bad credit loan which can be secured or unsecured. A loan that is secured on property by way of a mortgage will inevitably attract much lower interest rates than an unsecured loan.

We operate a searchable database of lenders and we can obtain competitive interest rates for those with a poor financial history. A lot of the products on our database are not offered by the High Street financial institutions and many of our niche lenders are able to offer much better interest rates for a UK bad credit loan that are only marginally above normal because they do not have the same expensive overheads as most banks and building societies. Our telephone operators are available 24/7 to help you with a quotation or alternatively just complete and send our contact form to obtain detailed information on the best product available to satisfy your needs. Most of our lenders are able to offer very fast decisions and will make an offer in principle once they have all of the relevant information.

Lenders who will offer a UK bad credit loan use the same vetting procedures as the banks and building societies and will usually ask for full disclosure on the application form which they follow up with a credit report from one of the major credit reference agencies which hold a record of just about everyone in the UK. If you have ever obtained a loan, or used a credit card or have made use of hire purchase then you will almost certainly feature on the files of ‘Experien’ or ‘Equifax’ which are the two largest agencies in the UK. Matters for consideration by the lender may include :-

• The extent of the borrowers poor record and the number of defaults. A poor record is not necessarily a bar to obtaining finance however it may dictate the interest rate charged by the lender. Account will also be taken of any credit that was repaid correctly and most niche lenders will also consider any mitigating circumstances in regards to the reason for any default.
• Family income is a matter for consideration as lenders inevitably look at income and expenditure when assessing the ability of the borrower to repay any loan. It is possible to make both spouses or partners or another family member jointly liable on the loan and guarantees may be requested from another family member or from a friend if necessary. Information on household expenditure and the amount of any instalments for other loans will be requested by the lender to ensure that there is sufficient free income to service the proposed loan.
• If the borrowing is to be secured then the amount of the equity held by the borrower in the property is an important consideration as it provides a ‘cushion’ to the lender which may encourage lower interest rates.