Poor Credit Loans

Having a poor credit record when you make a loan or mortgage application can make it more expensive for you, but it certainly does not automatically exclude you from getting a loan. The lenders will usually ask you to pay a higher interest rate or other fees because of the higher risk. You may also be offered less than you asked for or you may be restricted to a smaller range of products.

When you make the application you will be credit scored and your credit history will usually be checked with a credit reference agency. If you are turned down because of poor credit, you can get a copy of your credit file from the credit reference agency the lender used to check on your creditworthiness. If it was a mistake because of an error on your file you can ask for the bad credit record to be corrected or removed. Then you could try again for the loan.

If you are a homeowner with equity in your property (valuation on your home exceeds mortgage and charges), applying for a secured personal loan with poor credit does not necessarily exclude you from good deals. The lender will have a charge on your property in a secured loan and this should mean a better interest rate. Use the APR to compare the various quotes. If the poor credit loan is to be unsecured then the lender may not approve your application or you can expect to pay an even higher interest rate or other charges.