Cant Get Credit Anywhere – building a credit history can be difficult and poor credit history makes it even more difficult to obtain credit anywhere.
Tried Everywhere, But Cant Get Credit Anywhere?
Traditional lenders are the hardest from which to receive credit. They have much stricter guidelines to obtaining credit, but there are ways to get credit even if you cant get credit anywhere.
What about a guarantor loan?
People who have no credit history often require a co-signor or guarantor to sign a loan with them. This person also becomes responsible for the loan in case you are unable to repay the debt. This is an excellent way to build a credit history so you can obtain credit on your own.
Representative 277.5% APR - Representative Example: Amount of credit: £750 for 12 months at £119.21 per month. Total repayment of £1430.52. Interest: £680.52. Interest rate: 140% pa (fixed). 277.5% APR Representative.
As the economy slipped into a recession, obtaining credit became more difficult. Job losses can often create poor credit and make finding credit difficult until you have regained employment, brought loans current and have re-established stellar credit.
The worse your credit the harder it is to obtain a loan. Often people turn to pay day loans, door to door lenders and pawn shops to get small loans to help in dire situations.
Many of these non-traditional lenders will lend to those with poor credit but the trade-off is very high interest rates. In the money business the worse the credit the higher the risk a client is, therefore lenders try to divert the risk by charging high fees and interest.
The upside is many of these non-traditional lenders don’t require collateral to secure the loan.
Pay day loans will lend against your next pay cheque. The amounts are limited to what you can repay and the interest rates can be exorbitant.
If repayment is not made with the next cheque, roll over fees and penalties can quickly lead to financial problem. Payday loans are good for emergency situations but rarely do they do anything to improve your credit.
Door to door loans are more flexible and agents come weekly to collect small payments. These are more flexible and allow for an affordable repayment schedule although these too have very high interest rates that make borrowing small amounts of money extremely expensive.
The upside is many door step lenders report to the credit bureaus so this is a viable way to build credit provided you make your payments on time.
When you can’t find credit anywhere you need to look outside of the box at non-traditional lenders such as pay day loans and doorstep lenders who will lend to those with poor credit but at high interest rates and short terms.
When you cant get credit anywhere, just click on the links and banners on this page.