Even if your credit rating is good, there’s a reasonable chance that at some point in your life you may need the help of a bad credit loan. If on the other hand your current credit history is poor and you feel you are unlikely to be able to secure finance, think again.

There are a large number of banks and financial institutions that specialize in lending money to people with poor credit. However there are a number of factors that you should consider before taking the plunge with a bad credit personal loan of this type.

  • Interest Rates Because of the perceived higher risk of lending money to people with poor credit history, the interest rates charged are likely to be higher than those offered to customers with prime credit history.
  • Credit Report it’s often worth checking your own credit history with one of the online credit report agency’s to check your current status and to check for any possible mistakes on your report.
  • Improve Your Credit Rating It’s a good idea to try and improve your credit score by paying bills on time every time. Another way of improving your credit is by being added as a joint account holder of someone else’s credit card.
  • Am I Getting A Good Deal? In desperation to secure credit many consumers will grab the first deal offered to them, which can be a mistake. There are many companies offering these types of bad credit personal loans and its worth shopping around to get the best deal.

Not everyone who requires a poor credit loan and has a bad credit history is financially unstable. Many people have had a few financial problems in the past but things have improved recently however there poor credit history continues to follow them around. However whatever your situation you should always borrow no more than you can comfortably afford to repay. Work out a budget and bear in mind that interest are often variable and can go up as well as down.

Monday, September 13th, 2010 at 6:28 pm
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