Loans With Bad Credit History

There are many ways in which someone can incur  bad  credit ; generally speaking financial mismanagement is to blame. One myth of  bad  credit  is that it can only be incurred via previous  loans , missed payments on utilities or even subscriptions such as Sky TV or Virgin Media can have the same effect on your  credit  score.

Different types of  bad  credit  will have different affects on your  credit  record; one missed payment on a magazine subscription will not greatly dent your chances of being approved for future finance, whereas CCJs IVAs and bankruptcy will show up on your  credit  record for a minimum of 6 years.

Fortunately there are a now a number of lenders offering  Loans  with  Bad  Credit  History, here is an overview of the types of  bad  credit  loans  available:

Guarantor  Loans  – Amount offered ranges from £1000 to £5000 over a term of 1 to 5 years. Requires a guarantor to support the application and guarantee the monthly repayments should the borrower fail to do so. The guarantor must be a homeowner, have good  credit  history and be between the age of 25 and 72; they must not be financially linked to the applicant meaning they can not be a partner or spouse living in the same property.

Some guarantor lenders are now offering a tenant guarantor  loan , which offers up to £1000 over a 12, 18 or 24 month term. Similar to the normal guarantor  loan  they require someone to support the application, the difference being; the guarantor can be a tenant; however they must have good  credit  and be on the electoral role at their current address.

Instalment  Loans  – Again offering up to £1000 over a term of up to 12 months, instalment  loans  do not require a guarantor to support the application. Despite being a specialist  bad  credit  loan , lenders will still carry out a  credit  check and some form of income and outgoings in order to prove that the  loan  is affordable for the borrower. Despite carrying out a number of checks on the applicant instalment lenders will look to offer a same day decision meaning the money should be with the borrower within 24 hours.

Payday  Loans  – A relatively new product that has become popular amongst those  with  bad  credit  history due to the decision and payout time offered. Payday lenders offer amounts ranging between £20 and £400 and are designed to be repaid at the borrowers next payday. The amount available will be dependent on the borrower’s repayment ability which is calculated in the automated  credit  and affordability checks carried out. Payday lenders will have a decision within 10 minutes of applying and all being well the money can be transferred into the applicants account within 1 hour.

There are a number of factors that will affect which type of  loans  with  bad  credit  history will suit you best, these are;

• How much cash you require


• How term you require the  loan  over


• The affordability of the monthly repayments


• How quick you require the cash

Having taken these factors into account, you should have a good idea of the type of  bad  credit  loan  you require; now you must choose a suitable lender. One of the most popular methods of doing so is using the  loan  comparison website. These will match the details you enter in an online application with the criteria of the lenders on their panel in order to find the most suitable lender offering  loans  with  bad  credit  history for you.

Source by Jason C Scott

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Loans With Bad Credit History