Bad Credit Loans
Life can be unpredictable. Things happen and we can sometimes make mistakes.
Having a tricky credit history doesn’t mean that you can’t get the finance you need. With our expertise and our access to specialist lenders, we can find a loan that’s right for you, whatever your circumstances.
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A bad credit rating is when a persons credit file shows negative credit behaviour, this is usually in the form of missed, or late payments. Your credit file shows as a score, which is based on the amount of credit you borrow, your payment history and current financial situation.
I’ve got really bad credit – arrears, defaults, County Court Judgements (CCJs) – can I still get a loan?
We work with specialist lenders who understand that these things can happen and have products that can match most credit profiles. We’ve found loans for customers who’ve had outstanding CCJs, defaults, arrears, and missed loan and credit card payments.
The interest rates are often higher because the lenders see these loans as a higher risk for them, but we’ll always make sure that the monthly payments are affordable for you. As these loans can often help to repair your credit profile, once your profile has improved, you may be able to refinance onto a loan with a better interest rate.
Lenders will almost always want you to pay off outstanding CCJs or council tax and utility company arrears. This can be a good thing – it gets rid of the debt and any worries that come with it and paying it off can be the first step towards repairing your credit profile.
Representative example: If you borrow £26,000 over 10 years, initially on a fixed rate at 5.05% and for the remaining 5 years on the lenders standard variable rate of 4.65%, you will make 60 monthly payments of £310.37 and 60 monthly payments of £307.37. The total amount of credit is £29,195; the total repayable would be £37,245 (this includes a lender fee of £595 and a broker fee of £2600). The overall cost for comparison is 7.90% APRC.