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Bad Credit Rating? You Can Still Find a Cheap Loan.

If you need a bad credit loan or want to improve your credit rating... This page shows you how. There are many companies willing to give you an adverse credit loan but most will charge very high interest rates unless you can improve your credit history first.

Although you can still find a cheap loan with a bad credit rating you must accept that it will probably cost more than if you had a perfect credit record. However, if you follow the guide below you should be able to secure the best deal possible. It doesn't matter whether you are looking for a bad credit mortgage loan, bad credit home loans or bad debt credit cards; the same information applies. See also our Debt Consolidation Loans page.

1. How bad is your credit rating? It's worth finding out. You may then be able to correct any errors and have certain items removed from your record. Although the official cost of a credit report is £2, you can also get free credit reports on a trial basis. Credit reports can be obtained from Experian PLC, Callcredit PLC or Equifax. These companies will often try to sell you a more detailed report for a much higher fee. The higher priced report is not necessary if you only want to check basic details. Please see also the footnote at the bottom of this page.
1. Avoid credit repair companies. They will charge you more and cannot themselves make changes to your credit report. Deal directly with the credit reference agencies listed above as they are the only ones that are allowed to make changes to your credit history.
2. If you have been declined credit, do not make further applications until you find out why. All searches of your credit report are registered for twelve months and they can affect future applications.
3. When applying for any type of loan, not necessarily just a unsecured bad credit personal loan, ensure that all forms that you are required to fill in are fully and accurately completed.
4. Make sure any CCJ (County Court Judgement) information on your credit report is correct. If you have paid a judgement within one month it should not appear on your credit record at all! If it does, you will need to obtain a Certificate of Satisfaction from the court so that your record can be updated. Other judgements, even if subsequently paid in full, will remain on your record for six years.
5. Ensure that your electoral roll information is up to date. Lenders will check this to verify the address you have given them is correct. If you are not listed on the electoral roll, or have recently moved house, you should contact your local council and explain the problem before applying for a loan.
6. Ask the loan company to remove the duplicate record if they have searched your credit report more than once for a single loan application.
7. If you cannot provide enough evidence to persuade a credit refererence agency to amend your record you can still ask for a "Notice of Correction" to be appended to your file. Details of how to do this are obtainable from the individual reference agencies.
8. You will also need to check the files of all three major credit refererence agencies as their records may differ from each other.
2. A credit report contains your name, your address, date of birth, social security number, previous addresses, current & previous employers, records of bankruptcies, liens or judgements. It also contains your credit card, mortgage and loan payment history. Obviously with all this information already on record, any discrepancy when filling in your loan application will be noticed and count against you.
3. Once you have ensured the details above are correct, you should apply for quotations from at least three different loan companies. Please note that asking for a quotation should not be registered on your credit report. It's only when you apply for the loan will the information actually be added to your record.
4. Sometimes you can get a slightly better quotation for unsecured personal loans with bad credit if you apply online.
5. When you receive the quotations don't necessarily choose the one with the lowest APR. Check the small print carefully. Some companies add large arrangement or other fees to the loan total so they can reduce the APR, and make the loan look more attractive than it really is.
6. If you have debt problems and need more advice, try the following organisations that may offer help with your problems. Citizens Advice Bureaux, National debtline or the Local Trading Standards Service.
7. Remember that your credit report is only one of the factors that will be considered by a potential lender. Each company will have their own areas of expertise (bad credit loans, car or auto loans etc. etc.) so if one company will not consider your application almost certainly another will.

A good loan for people with bad credit is not easy to find, but with a little attention to detail, a poor credit loan that suits your purpose can nearly always be found. The same principle applies to other types of loan such as bad credit remortgages in the UK or whether you are looking for a mortgage lender that will consider you with bad credit record.

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