How to Get a Bad Credit Loan
When applicants with a low credit score may not be offered standard loans, a bad credit loan could be the perfect solution.
It is an unofficial term, which is why lenders do not advertise themselves as bad credit loan providers. However, it can provide a solution for applicants who would ordinarily be considered as higher risk candidates.
How to get a Bad Credit Loan
Bad credit loans are designed to support applicants with a less than perfect credit history. The first step, then, is to secure your free annual credit report to gain a clearer understanding of your current score. Your score may have been harmed by defaulted payments, late payments, or CCJ’s. Moreover, running lots of hard searches on your account can have a negative impact with a few exceptions. Such as you have the right to shop around for mortgages, so you can apply as many times as you want within a certain time period according to the bureaus without it hurting your score. However, it might not have the same effect if you apply to a ton of cards, you should inquire with the bureaus to see how this may affect you. As such, it’s important to consider a secured card to help rebuild your score until you build up your score and gain confidence in your score. Working with a broker like Mortgage Quote allows you to analyze the market, work out what you are capable of repaying each month, and find a bad credit loan with a high acceptance rate. The funds can be used for any purpose that a traditional mortgage would cover.
Alternative Options
If a bad credit loan isn’t an option, it may be possible to look at other financial products. A guarantor is a product where a loved one will become responsible for payments should you miss them. Alternatively, a secured mortgage can use assets as collateral.