Past financial mistakes can lead to a Bad Credit History that makes approval for much-needed Personal Loan UK credit often very difficult or inhibitive and too expensive.
If you do have a poor credit history, lenders will see you as more of a risk compared to those who have a clean history. If you’ve struggled to meet repayments in the past or even if you have little-to-no credit history to look back on, due to not living in the UK for very long or only recently coming of age to qualify for a loan, some lenders may turn down your application because they’re not confident you’ll keep up with your monthly instalments. Because of this, interest rates for bad credit loans will often be higher than for loans designed for people with the cleanest credit histories. Do please remember, that should you take out a bad credit loan, only do so if you’re very confident you can meet the monthly repayments. If you don’t, you risk causing more damage to your credit history.
The main advantage of bad credit history loans, of course, is that you’re able to borrow money even if you do have a poor credit history. Another advantage you should consider is that a bad credit loan itself could actually help to improve your credit history, subject naturally to you making all your repayments as required by your Credit Agreement. Negatively, a key disadvantage of a bad credit loan is that the interest will most certainly be higher than on loans for people with a good credit history.
If you’ve had problems keeping up with your repayments in the past which have left a mark on your credit history, you might find it more difficult to be accepted for poor rating loans now – that’s where we may be able to help. At Olamoney.co.uk, we specialise in finding the right loans for people with bad credit histories. We don’t rule borrowers out because of missed repayments, CCJs or sparse credit histories. Instead, we aim to give competitive rates so even those with a bad credit history can secure the finance they need.
Are bad credit history loans safe to borrow?
Yes, providing you can honour the Credit Agreement. As with any type of lending, bad credit loans are a safe way to borrow providing you can meet the monthly payments you’ve agreed to. If, for any reason, you’re unable to pay back your loan, you should get in touch with your lender immediately to discuss your options. Often, there will be an amicable solution so don’t be afraid to raise any concerned regarding repayment that you may have. Lenders can only help you if your communicate with them.
What are the main causes of a bad credit history?
There are various things that can lead you to have a bad credit history and need poor rating loans:
Late or missed repayments on any debt from a mortgage, credit card or loan, to a mobile phone bill High levels of debt outstanding; i.e money still owed that adds up to a high level relative to your income.
Having defaults or CCJs against your name will be seen as high risk.
Being declared bankrupt will also be seen as a high risk.
Applying for lots of credit in a short space of time.
How much can I borrow with a bad credit loan?
At Olamoney.co.uk, you can borrow from £100 to £10,000 with our personal loans UK credit Service.
What can I use a bad credit loan for?
You can use a bad credit loan for almost any purpose you wish. There is no limit really on what you can use it for; car repairs, home improvements, emergency fees, holidays…whatever you desire.
Can a bad credit loan improve my credit history?
Yes. Providing you make all of your monthly loan repayments on time and in full, you’ll demonstrate that you can manage money responsibly. This can indeed improve your credit history. It’s important to remember that bad credit loans are often a last resort if you’re struggling to borrow money, so bear in mind that if you fail to stick to the terms or your loan agreement, you may find it even more difficult to borrow money in the future from other lenders.
Repaying your loan early
If you have the option to repay your loan early and you find that you are able to, then this is a recommended option. You should find your final repayment reduced since you will not be borrowing for the original full term. While this strategy might not make that much difference on a low interest loan, such as 0%, it will make a significant difference on a high-cost loan. When taking out a loan, check first with your Lender if no-penalty early repayment is an option; especially if you think you may be able to take advantage of it.