Bad Credit Secured Loans:
Getting a personal loan with a bad credit history is not easy as lenders are not sure you are a safe bet and will either deny you credit at all or ask you to pay extremely high interest rates.
Meanwhile, reasons for having bad credit can vary from bankruptcies, County Court Judgments and having a record of defaults on repaying previous loans or credit cards, to simply being self-employed or not having yet built any credit history at all.
In this case a secured loan can be a solution to the problem. Secured loans have a collateral in the form of the borrower’s property – usually a house, but some lenders will also accept a car as a collateral for smaller sums. Most lenders will give up to £25,000 and with lower interest rates if a loan is secured. Continue Reading
Buying a house with bad credit history is in no way easy, but with some extra (quite a lot, actually) effort and time it is still possible to find a solution.
Looking for a house of your dreams seems to be an obvious starting point, but it makes more sense accessing carefully your financial situation first and getting to know what you can count on mortgage-wise.
Shop around, enquire with different banks and building societies and seek professional advice of an independent mortgage broker. The thing is, most high-street banks have drastically cut on mortgages and house loans, especially for the first-time buyers and for people with bad credit, but there is a special category, called sub-prime lenders, who are still willing to lend money. Continue Reading
People with a bad credit history might consider remortgaging as a way of improving their financial situation and getting a better score, although in order to be a success, remortgage with a bad credit should be carefully planned.
Getting back to basics, a remortgage is a change of interest rates and conditions on which you repay your current mortgage. The main reasons for remortgaging is to get a lower interest rate, renegotiate mortgage conditions, reduce the monthly payments. There are two ways of doing it. One can either switch to another lender with a better overall offer o renegotiate conditions with the original lender. Often people with bad credit remortgage in order to get some cash to be used to consolidate the already existing debts. In this case remortgaging could be done as releasing equity. Continue Reading
Taking a mortgage loan can be difficult for people with bad credit, no matter what caused it – late payments in the past, county court judgement or simply not having any previous credit history or being self-employed. But difficult does not necessarily mean impossible, and bad credit mortgages, sometimes referred to as impaired or sub-prime mortgages are still available in the UK, although their market has shrinked lately. The main difference from a standard mortgage is a much higher interest rate and a bigger deposit to secure a bad credit mortgage loan. Continue Reading
Car finance for people with bad credit is definitely more difficult to obtain than if you had a good credit, but lately more and more UK lenders are willing to give car loans even if you’ve had problems with keeping up with paying off pervious debts, have a CCJ (County Court Judgement) or are simply self-employed.
Naturally, if you have a bad credit, it is easier to get a car loan for a second-hand decent car than for a brand-new Ferrari, but even here there are exceptions. Many other parameters matter, such as type of car, your employment and income, percentage of down payment you are ready to put in.
The biggest difference with a standard car loan will be that lenders charge people with bad credit higher interest and are more reluctant to give unsecured loans (for more on secured vs. unsecured loans see Personal Loans in the UK). As a rule, a collateral is needed to secure a loan, in the form of a car itself or any other property.
Good research and common sense are the main keys to success in finding your ideal bad credit car loan. Find the information about lenders, specialized in bad credit loans on the Internet, go to the car loan brokers (but make sure they are certified by the Financial Services Authority) and ask for free quotes and payment conditions to compare. Check if the interest rate is fixed or variable, whether there are penalties for early repayment attached, calculate the period over which you are going to be able to pay it (most lenders will allow the borrower to choose the loan term – but be realistic). Take into consideration all the additional costs of taking a loan and buying a car – a deposit, broker’s fee (if you are using one), registration fees, taxes and insurance.
For more on getting finance for buying a car see Car Loans in the UK.
