How to find out if you have a bad credit
Before you apply for a loan you must check your credit rating from the credit rating agencies such as Experian or Eqifax. You can check your credit rating directly online by creating accounts on these sites or you can order your mandatory credit report by paying them £2 fee.
I wouldn’t recommend you creating an account on these websites as this is rip off. They offer free trial period and after that they charge a monthly fee which is not worthy at all.
You can always obtain your mandatory credit report by paying £2 fee whenever you want.
How to get Bad Credit Loans
Once you have obtained your credit report and you found out that your credit rating is poor then you should look for a bad credit loan rather than usual normal loan.
The reason why you have to look for a bad credit loan is that the high street Banks such as HSBC, Barclays, Lloyds TSB, Natwest and others will refuse you a loan with bad credit.
However if your financial situation is good and you can be able to convince the bank that you can afford to repay loan then you might give a try with any bank of your choice and see the outcome. If you can offer some kind of security then you might get a normal loan.
If one bank refuses you to offer loan then chances are other banks might do the same.
Once you come to know that you can’t get a loan with poor credit then you have to look for a bad credit loan.
There are some financial institutions which specialize in bad credit loans. You will have to search for them and find out by yourself.
The main points to remember is that bad credit loan comes with a very high interest rate and fees.
Unsecured Bad Credit Loan
These type of loans are the worst of all bad credit loans as interest rates are very high because you don’t provide a security.
How to avoid falling in the debt trap with bad credit loans
Taking a bad credit loan is falling in debt trap. Bad credit loans come with heavy interest and some misleading insurance policies such as PPI and others as well.
If you are not careful you might end up with a heavy interest loan.
Try to avoid getting a bad credit loan as much as possible. Seek monetary help from your family, friends or other places.
If taking a bad credit loan is absolute necessary then do a thorough research on the lenders before applying for the same. Don’t take any PPI or other insurances which are rip off