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These days there is nothing unusual about having a tarnished credit history, as many households in the UK have found themselves in this sort of situation. The rise in the number of people that have poor credit has partly risen as the result of the rising levels of consumer debt all across the country. With crippling interest rates, a variety of debts, and high monthly repayments to deal with, it is no wonder that many households have found themselves missing repayments and suffering the consequences in terms of their credit rating.
One of the most effective solutions to making these debts more manageable and reducing monthly repayments is to consolidate debts, but many people may find themselves in a catch-22 situation, where they need a loan to consolidate their high interest debts but because of their poor credit they are unable to get credit and therefore have to continue making crippling repayments.
What's the solution for bad credit consumers?
The good news is that lenders have realized over recent years that there is a huge gap in the market when it comes to sub-prime applicants, which includes those with poor credit that pose a higher risk to lenders. A number of lenders and companies have therefore started to offer finance deals for consumers, which means that even if you have bad credit there are some affordable finance deals out there that could really help.
You can get benefit from a secured loan even if you have poor credit
Although most poor credit customers will find it very difficult to get an unsecured loan, many reputable lenders are now able to offer secured finance, which is a loan that is secured against an asset - normally your home. This means that you would need to be a homeowner in order to benefit from this type of credit, but if you do qualify you can enjoy very competitive interest rates, longer repayment periods, higher borrowing power based on the equity in your home, and more affordable monthly repayments.
You can use a secured loan for any purpose, including home improvements, holidays, purchasing a vehicle, or just about any other purpose. In many cases the amount you are able to borrow will be based upon the equity in your home, which is the market value of the property minus any loans or mortgage already secured on it. However, you can also find lenders that are able to lend over and above the equity levels in your home, and many that can arrange finance even if you have little or no equity.
Consolidate your debts with a secured loan
The chances are that the reason that your credit rating has taken a knock is because you have struggled making crippling repayments each month on high interest debts, and as a result you missed repayments or made regular late payments. In order to start bringing your credit rating back into line it is important to start making repayments in a timely manner, but this is easier said than done when you are struggling to meet the repayments required.
If you have poor credit you could benefit from a secured consolidation loan, which a variety of lenders offer to bad credit consumers. With this type of loan you can pay off all of your smaller high interest loans, and with the longer repayments terms, lower interest rates, and reduced monthly repayments that come with a secured loans, you can enjoy more disposable income and reduce the chances of making further late payments - or missing repayments altogether.
Consolidating your debts with this type of loan will also make handling your finances more manageable, as you won't have to worry about dealing with a variety of creditors, which makes it easier to reduce the risk of late and missed repayments.
Looking to purchase a car?
It may be that you have a poor credit rating, you are unable to get a regular secured loan, but you need to find a way of getting a new vehicle. You will now find that a number of car finance companies are able to offer car finance to those with poor credit, enabling even those with a low credit rating to buy a reliable vehicle at affordable interest rates.
Using car finance companies that offer finance to low credit consumers is an effective way to enjoy the benefits of a newer vehicle without paying over the odds. You can enjoy some very competitive interest rates, and a wide choice of vehicles to select from - and the whole process is normally very quick and reliable.
Compare loans and car finance with ease
Whether you are looking for a secured loan or specialist car finance, you can enjoy a great choice of deals that are available to those with poor credit. By comparing the different deals and options available you can find the finance package that best suits your needs and circumstances.
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