A bad credit rating can quickly creep up on you. Tarnishing your name for what seems like forever; bad credit ratings can be a curse for younger families looking to apply for a new loan. Many banks will close the door on those who attempt to apply for a loan with a bad rating but it shouldn’t deter you from securing the money you need for the next stage in your life.
In this article, I’ll run through how you can get a loan with a bad credit rating and with a bit of planning and the right lenders, you can explore the market for the best deal for you. If you don’t know where to start, Newcastle Permanent Building Society have the most competitive Secured and Unsecured loans. Click here to visit them today.
Don’t Fake It
You can’t try and hide a bad credit score or make it magically disappear. While applying for a loan with a bad rating will be harder, it doesn’t mean that it is impossible. By looking into your credit rating and having a better idea of what it will mean for you all depends on the loan you’re looking into.
The worse your rating means the more you will pay in interest so to get the best deal, you’ll want to build your credit rating back up again.
Consolidate Your Cards
Credit cards are an easy fix that don’t seem to carry the conditions that can scare some people away from smaller loans however, it can be quite the opposite! Your credit rating is pulled down more by credit card debt than debt from a personal or other small loan. With higher interest rates and more at stake, by consolidating your credit cards, you don’t leave yourself open to a constantly worsening credit rating.
Lenders from Newcastle Permanent consolidates the best offers into one with their low loan credit card. It features 55 days interest free on purchases and an interest rate of 11.99%PA so that you don’t get bogged by various rates across all of your cards.
Build it Back
Fixing a bad credit rating can seem like a huge daunting task and I won’t lie to you – it is. However, with a little bit of commitment and penny pinching, you can ensure that for future loans, you won’t be paying as much long term. Some of the best ways to build back your credit rating is by paying your bills on time, paying off credit cards and consolidation.
Secured Loans
Dealing with busy banks can sometimes leave those with a bad credit rating at the bottom of the list when it comes to loan applications. By option for a secured loan where there is the collateral of a car, house or other asset, lenders will be more willing to give you a loan, knowing that in the event that you can’t pay for the loan, they can reclaim their money.
Newcastle Permanent Building Society offer small personal and car loans with a competitive interest rate of 8.41%PA. This goes to show that applying for a secured loan with the right lenders could see you being approved without interest rates that spike through the roof.
A bad credit rating can make you feel a bit awkward when approaching a lender for a loan application. After reading this, I hope that you’ve realised that even with a bad credit rating, you aren’t out of the game. With the right planning and research, you can not only secure a loan but also improve your rating. Meet with a trusted lender today and commit to a loan with an institution that cares and start to live the life you deserve.
