Posts Tagged → Bad Credit Loans
If You Have A Low Credit Score You Can Still Get A Bad Credit Loan
Just because you have a low credit score, it is still possible to obtain a loan. There are many companies out there that will be willing to lend you the cash you need; however; you may need to search a little harder to find a company that will offer you Bad Credit Loans with a low interest rate that you can afford.
Before you start looking for a loan you need to obtain a copy of your credit report. You need to look through your credit report with a fine tooth comb and look for ways to improve your score. It only costs £2.00 to obtain a copy of your credit report, and it will be the best £2.00 you ever spend. I would strongly recommend obtaining a copy of your report every other month. Here are the main areas you should look at.
1. Ensure you have any errors amended.
This is very very important, some companies may be quick to mark you down, but slow to update the Credit Report Company when you have finished paying. If there are any discrepancies, contact the company involved and ask them to update your file. Sometimes the companies may refuse so you can add comments of your own as a “Notice of Correction”
2. Make sure you are on the electoral roll.
Being on the Electoral Roll had two advantages, firstly it means you are eligible to vote, and secondly it will improve your credit score as you will be seen that you are less likely to go missing should the Lender need to find you.
3. Never Miss Payments.
Credit companies love people who pay their bills (no surprise there) but many people do not understand how important it is to ensure you pay your bills regularly and on time. Every time you pay a credit card or store card your credit report is marked. If the payment is on time you will receive a Status code of 0 (Zero). If you are more than a day late with your payment up to one month you will receive a Status Code 1. Two months the Status Code is a 2 and so on.
4. Get a Landline Telephone.
Many people nowadays reply on mobile phones, as they can work out cheaper. Landline telephones are important for your Credit Score because this shows the lenders that you intend to stay in the same house or flat for a long period of time. This means that if you did default on your loan or credit agreement they know where to find you.
Once you are happy that you have done the best you can with your credit report, you can then start to look around for Bad Credit Loans. You will then have the confidence that should you be turned down or asked for more information about your credit history you will know exactly where the issues are and be able to offer an explanation.
