Poor Credit Rating

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If you have had poor credit history, you may think that you won’t qualify for a personal or secured loan. There are loans available and here we discuss your choices and the issues you need to consider.

Is a secured loan the best choice for people with bad credit?

If you are a homeowner and have a bad credit in past, you are more likely to be offered a secured loan rather than a personal loan. A secured loan does offer more choice as:

1. the amount you can borrow is higher than a personal loan
2. the repayment term can be longer
3. the eligibility criteria are generally less rigorous than a personal loan

The lending company is only able to offer these benefits because its risk is reduced by having your house as security against the loan.You need to think very carefully before taking out a secured loan because If you default on your payments you could might lose your home.

What other steps can I take to improve my credit rating?

Debt consolidation loan: If you want to control your debt by having one manageable, monthly repayment, a debt consolidation loan could help you:

Pay off your loans: If you are able to pay off the loan and accrue no further debt, this will be seen as a positive value towards your credit rating.