http://www.uswitch.com/loans/secured-loans/

Loans for bad credit | Bad credit loans

Bad credit loans are specifically targeted loans for people with bad credit, but are they right for you?

Loans for people with bad credit

If you have had problems with credit in the past, or are currently experiencing financial difficulties, you may think that you won’t qualify for a personal or secured loan.

However, there are loans for bad credit available and here we highlight your choices and the issues you need to consider.

Compare loans for people with bad credit

Even if you have a CCJ or have been refused credit in the past, you can still compare and apply for loans with uSwitch today

Compare loans

Reasons for needing a loan for bad credit

You may find that you need to apply for a bad credit loan if you have a low credit rating. This could have been the result of missing repayments such as for a credit card, phone contract or mortgage. You might also be a victim of having a non existent credit rating. In order to know if you are trustworthy the bank will want to see evidence that you will make all repayments on time, without a credit history this information isn’t available to them.

What is a secured loan?

It’s very important to be aware of the different types of loans  for people with bad credit.  There are both secured and unsecured loans. A secured loan means that the lender has a claim to your property if you cannot keep up with repayments.

There’s a chance that the interest rate will be lower for secured loans, however you need to think very carefully before taking one out. If you default on your payments you could risk losing your home.

Is a secured loan the best choice for people with bad credit?

If you are a homeowner and have a history of bad credit you are more likely to be offered a secured loan rather than a personal loan.

A secured loan does offer more choice as:

  • the eligibility criteria are generally less rigorous than a personal loan
  • the amount you can borrow is higher than a personal loan
  • the repayment term can be longer

However, the lending company is only able to offer these benefits because its risk is reduced by having your house as security against the loan.

Check your credit rating

CompanyPriceOther information Apply
30 day free trial
£14.99 a month
Freephone UK call-centre
Email & SMS alerts
Proceed
30 day free trial
£14.95 a month
Weekly alerts
Customer support team
Proceed
30 day free trial
£7.99 a month
Three credit agency checks
Debt advice centre
Identity theft protection
Proceed
£19.99 One off credit report check
No monthly subscription
Proceed
30 day free trial
£7.99 a month
Unlimited credit report access
Alerts and tools
Support to improve credit rating
Proceed
7 day free trial
£14.99 per month
Daily web monitoring
Instant identity notifications
Unlimited credit report access
Proceed

loans for bad credit - loans for people with bad credit

What steps can I take to improve my credit rating

  • Debt consolidation loan. If you want to control your debt by having one manageable, monthly repayment, a debt consolidation loan could help you.
  • Pay off your loans. If you are able to pay off the loan and accrue no further debt, this will be seen as a positive value towards your credit rating.
  • Check your credit report. It is a good idea to check your credit report before you apply for a debt consolidation loan or secured loan.

Compare loans for people with bad credit

Even if you have a CCJ or have been refused credit in the past, you can still compare and apply for loans with uSwitch today

Compare loans

Read more…