About Personal Loans
What are personal loans? They are unsecured loans that a borrower obtains for various purposes. This type of loan is often used to consolidate outstanding debt into one monthly payment, but it can be used for other things such as paying for a...
Easy ways to get Loans, Leases and Mortgages
There's an old saying "a bank won't lend you money if you really need it," and it's really almost completely true. Banks prefer to lend money or extend credit to people who already have lots of money, and carry the top credit cards. If you've got...
PayDay Cash Advance Loans - The Benefits of Using the Payment Protection Plan
Payment protection plans are offered by payday companies to protect you in any number of unexpected situations. The payment protection plan is an inexpensive form of insurance that payday companies offer on all payday loans. The types of things...
Secured Loans Information
A secured loan is a personal loan which is generally offered to home owners. In a typical secured loan, the home is used as collateral against the loan, meaning that should you be unable to maintain the loan repayments, your home will be at risk. ...
Using Payday Advance Loans Wisely: Emily’s Smart Move
Using Payday Advance Loans Wisely: Emily’s Smart Move
Thinking about taking out a payday advance loan but worried about falling into a debt trap? Read this real-world scenario of how one person navigated the maze of payday advance loans...
Personal debt in the UK has soared to record levels over the
past few years. The Bank of England has recently confirmed that
personal debt on a national level now amounts to more than
£1,065 billion. Recent media reports suggest however that with
low interest rates on loans that the UK public are becoming
increasingly comfortable (and able) to manage high levels of
debt. These reports have a good body of evidence behind them
too, not least the fact that in 2004 the average age of outright
homeownership fell to a record low, showing that people are
paying off their home loans faster than ever before!
But, with a large proportion of the population handling some
form of debt it is inevitable that some people will end up with
debt problems, sometimes through no fault of their own. When
this happens, loans can become difficult if not impossible to
pay off. People with bad debt problems then land themselves with
a bad credit history that ends up excluding them from taking out
loans at a decent interest rate in the future.
Loans for people with bad credit
But, a bad credit record does not have to be the be all and end
all of buying on credit. In today's competitive loans market
there are increasing numbers of specialist loans companies who
are ready and willing to receive applications for loans and
credit from people with a bad credit history. If you have
acquired county court judgements (CCJs), have defaulted on loans
payments or credit agreements, have mortgage arrears or have
been declared bankrupt, specialist companies offering loans for
bad
credit may be able to help you.
When applying for loans for bad credit, mainstream lenders tend
to look almost exclusively at your credit file to assess the
risk involved of lending money to you. However, specialist
companies dealing in loans for bad credit are more likely to
take other factors into consideration. These 'other factors' may
include your current occupation and level of job security, as
well as the amount of income you have coming in and whether you
have equity in your home. If you are a tenant then your chances
of obtaining loans when you have a bad credit history are
substantially increased if you have been present at the same
rented accommodation for 3 years or more.
How much can be borrowed on loans for bad credit?
How much a lender is willing to give people with a bad credit
history on loans for bad credit rather depends on how well they
perform in the loan company's assessment. Each bad credit
applicant will be assessed on their individual circumstances,
with bad credit applicants who are seen as less of a risk to the
loans company being able to borrow more at a better rate than
those deemed to be a higher risk. As a guide, bad credit
applicants for a credit card may be able to receive a credit
limit of £2500, while bad credit applicants looking for a
mortgage may be able to borrow 2 - 2.5 times their salary.
About the author:
Matthew Bourne has been working in the loans, mortgage and life
insurance industry for over 10yrs and is currently working for
http://www.loansgalaxy.com and http://www.1click.co.uk
