Suffering from Bad Credit is not a new issue, and there are several reasons why you may be having bad credit. Some of the most common reasons include missing a scheduled payment, overdrawing from your bank account, or something as simple as failing to pay bills on time. Trying to hide your bad credit history is also virtually impossible as the majority of the credit history companies keep a detailed tab of the credit history. This has been made possible because of the digitisation of business and the advancement of technology and as such anyone with an internet connection can have access to your credit history.
Having Bad Credit means that there are very fewer chances of finding any financial institutions that will agree on giving you a loan or any financial assistance. More often than not, this happens to be the case because most loan lenders in the UK inspects the Credit history first before agreeing on giving you a loan. Therefore, individuals with bad credit history find themselves getting no financial assistance from majority of the traditional lenders.
Despite this fact, there are some financial institutions that are willing to offer bad credit loans to individuals who have a bad credit history. As such, Bad Credit Loans are loans designed specifically for individuals with bad credit. They differ from normal loans in the sense that they come with higher interests and stricter terms and conditions.
However, before agreeing on giving you a Bad credit loan there are a couple of things which bad credit loans providers look out for and they are:
- The monthly income you generate and your total monthly expenditure: A Lender will first take a look at your monthly income and monthly expenditure. After doing so, if they feel that you can save enough cash to repay the loan, you have higher chances of securing the loan.
- Your present employment status and employment history: The next thing which a lender will look at is your present employment status. If you are employed and have a stable income you have higher chances of securing a bad credit loan, however, if you are unemployed with no source of income, and a bad credit history chances of securing a bad credit loan is slim.
- A detailed look of your credit history: A Bad credit loan is specifically for people with a bad credit history, and as such, it is given that you have a bad credit history. However, despite this, a lender will always perform a credit check and this is done to help you find alternative financial assistance in case their bad credit loan is not suitable for you.
If you are someone with a bad credit history and in need of immediate financial assistance, then applying for a bad credit loan is the best way for you to get hold of financial assistance. Bad credit loans as such are specifically for individuals with bad credit history, and only a handful of lenders provide this type of loans. Though Bad Credit Loans have higher interest rates and more binding rules, they are your best bet at securing financial assistance if you have a very bad credit history.