Searching for a loan by a borrower with bad credit rating seems an impossible task. Infact, a bad credit rating restricts such borrowers borrowing options. Bad credit rating is caused by various factors such as defaults on payments, mortgage arrears, bankruptcy orders etc and becomes a problem when trying to get a loan. It is said that in U.K. one out of three borrowers have one or other type of credit problems. However, fortunately this bad credit rating problem induced lenders to devise a different loan for such borrowers which is called bad credit rating loan. So, now you don't need to despair as there are a growing number of specialist lenders offering finance to people with bad credit rating.

Therefore, if you had difficulties obtaining loans due to your bad credit rating but if you are still looking for loans, a loan for people with bad credit ratings is for you. Now, there are lenders who offer loans to borrowers with a history of mortgage arrears, County Court judgments (CCJ's), no proof of income or even a bad credit rating. It doesn't matter what you need the loan for, such loans are provided to both employed and self-employed borrowers, borrowers with no proof of income or even those with late payment history or defaults etc. One can use this loan for any purpose such as:

Debt consolidation
Home improvements
A new car
Holiday
A conservatory
A new kitchen
Multiple Property Purchases
Holiday Homes

Credit Rating

A Credit Rating is the score of a borrower on a certain scale, measured on the basis of a borrowers debts and payments during the previous 7 to 10 years, loan amount, any legal proceedings etc. It carries a three digit number known as a Credit Score. There are different agencies which specialize in developing credit reports for individuals.

One can obtain credit reports either from any of these credit report agencies directly or through lenders, to whom they apply for the loan. While requesting for credit rating, the borrower must provide some personal information such as existing credit accounts, payment history, name, residential address, Social Security number, Present Employment, Financial status and any legal actions as a result of financial implications (for example, judgments, bankruptcy, recovery etc). The credit report agency, in turn, assesses all these details, verifies the data, and develops the credit report, for a fee.

A bad credit loan is ideal if you want to borrow a large amount and have a poor credit rating Loans for people with bad credit rating is offered both as secured as well as non-secured. However, the difference is that in case of a secured loan, due to reduced risk, lenders charge lower interest rate compared to a non-secured loan. You can borrow from 7,500 to 75,000 and up to 125% of your property value in some cases.

Secured loans for people with bad credit rating can be repaid over a period of between 5 years and 25 years.

Loan for people with bad credit rating:

Key Features
Interest rate: Variable from borrower to borrower
Monthly installment: Depends on loan amount
Usually no upfront fees
Quotes offered free
Secured as well as non-secured loan available
Mostly, loan amount varies between 7,500 and 75,000 though it also depends on borrowers credit history
Repayment: Between 5 yrs and 25 years
Fast Processing