When you compare loans bad credit you need to know what type of loan you are looking for. We will have a look in this article at various types of loans and their advantages and disadvantages.
There may be many reasons why you are in the position to compare loans and you may have adverse credit because you have not managed your money commitments well in the past. Having said that, there are a lot of people with a bad credit history now through no fault of their own and purely down to the past credit crunch, which is still lingering on and affecting people’s lives.
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You may have made late payments or completely missed loan or credit card payments. As a result, you may have County Court Judgments against your name or worse, having been made bankrupt.
As a result of having bad credit, it is highly unlikely you will be accepted for a standard market loan like the high street banks or building societies offer. You will then need to compare loans bad credit to achieve the money required and to find the best deal available.
When looking to compare loans, there are many options to choose from, but it really depends on how much and for how long you wish to borrow.
Compare Personal Loans Bad Credit
A personal loan is the most popular type of loan in the UK. This type of loan allows applicants to borrow from £1000-£25000 over 1 to 5 years normaly.
This type of loan is ideal as they will have a fixed monthly payment and so is easier to plan financially for the future. The amount of credit you will be accepted for however will depend on your financial circumstances.
Guarantor Loans are an excellent option if an applicant has bad credit. They are similar to personal loans however it requires a family or friend to be a guarantor. This means if you fail to pay back the loan, it will fall upon the guarantor to pay it back. Not all guarantor loan companies require a homeowner as your guarantor either.
If you are a home owner there are great secured loans that are available too. Since the loan is secured on your property you have a higher chance of being accepted than an unsecured loan. Both guarantor and home owner loans can be compared.
By keeping up with your repayments, it can help rebuild a better credit rating by demonstrating to future lenders that you are capable of keeping up to date with your loan repayments. Do not borrow more than you need or more than you can afford to pay back, as this will go against you in the long run.
By clicking on the banners on this page you will find reputable and Financial Conduct Authority (FCA) approved lenders that can help match you with the best loan to suit your circumstances, even if you have bad credit.