The how and where of getting a bad credit loan

Help!  I have a bad credit rating!

If you have a bad credit rating, applying for a loan can seem intimidating, frustrating and disappointing!

There are lots of reasons why you might have a bad credit rating.  Whether you fell on hard times in the past, had a flatmate who forgot to pay the bills or you were once bankrupt, you are likely to have a bad credit rating but that doesn’t mean you have to miss out on getting a loan.  You could be eligible for a bad credit loan.

A bad credit loan is provided by specialist finance companies who have chosen the bad credit niche of the loan market.  Providing loans for people with bad credit ratings is their business, so it is in their interest to approve your bad credit loan.  To do this they have to charge a little bit more to allow for the risk of some of their loans becoming bad debts.  This means the interest rate on a bad credit loan may be a higher than regular loans.

Most big banks don’t offer a bad credit loan so it can be harder to source a bad credit loan compared to regular loans.  This is where the expert advice of a finance broker can help.  They listen to your situation and using their knowledge of all providers of bad credit loans, they develop a finance solution that you can afford.  They use their experience to present your case to the financier to encourage an approved bad credit loan.