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Loan Tips for people with bad credit
Getting a loan with bad credit is more difficult thank ever, we have a few pages on this site to help people with bad credit obtain mortgages and remortgage's but we thought we would put up some simple, straightforward tips to help people who didn't want or can not get a mortgage but wanted a loan with bad credit - the tips should make getting a bad credit loan easier and less stressful.
Bad Credit Loan - Get on the electoral role
One of the main problems people face when they want a loan is passing the lenders credit scoring system, a credit score is what some lenders use to help ascertain your credit worthiness, the higher the score the more likely you are to be accepted by the lender for a loan application. Being on the electoral role where you live will definitely help with the credit scoring process as you will be registered at the address you are living at with the government, the longer you have lived at your current address and the longer you have been on the electoral role the easier it will be for a lender to say yes.
Be in a secure job will help if you have bad credit
People who apply for loans who do not have a job or are in a probationary period will find it very difficult getting accepted, add bad credit to that and anyone who is not in some form of consistent employment and not in any probationary period will find it neigh on impossible to get accepted for a loan. Most lenders will require the borrower to be in their current job for a minimum of 3 to 6 months with a continuous employment record for at least the last 12 months - again, the longer you have been in your current job the better chance you have of being accepted by a lender.
Know what bad credit you have
This may sound like a silly requirement but you would be surprised at how many people apply for finance without knowing if their bad credit is due to missed loan payments, defaults on loans or if any of their existing bad debt have had County Court Judgments registered against them.
If you don't know what bad or adverse credit you have registered against you then it is going to take you much longer to find out if you will get accepted as any lenders you approach will have to do a credit search, if you already have your credit report to hand you can let the lender know what's registered against you speeding up the application process and reducing the number of searches carried out on your credit file.
Don't apply to too many lenders with bad credit
When applying for any loan its important not to apply to loads of lenders as each lender will want to do a credit search, each credit search will leave a footprint and having lots of lenders searches showing on your credit file could reduce your credit score.
It will help if you apply for your credit report yourself so you know what is registered against you, this means you can let the lender know so they can tell you if they are likely to accept you for a loan, if they are then you can make a full application, if not you can try elsewhere - you may also be better trying a loan packager or a loan broker who can apply to many lenders but will only need to do one credit search.
Whatever you decide, following the few simple yet effective tips above will help make you bad credit loan application go through more smoothly and more than likely make your application a more attractive proposition to a potential lender.
