The reason for your poor credit history may vary. It could be that you have not borrowed in the past and therefore the credit reference agencies have no trace of your borrowing habits, or it could be that you have had problems with debt in the past and have been unable to make repayments on time. This could lead you to searching on the internet for 'Poor credit loans'. Whatever the reason, we welcome your application as Monevo's lender panel look at your current circumstances to determine whether they consider if you are in a position to borrow and pay back on time. They work with a number of lenders and brokers who specialise finding lending solutions for those who may be struggling to find a loan from high street banks. Adverse credit can often be behind you, but the mark it leaves on your credit score can hang around for a few years even though you are back on your feet. You can be marked out as a bad credit risk, sometimes unfairly, especially if the reason for the poor credit score is due to a one time event in your personal life.
Things like redundancy or a relationship break up can be a catalyst to that bad credit score, and Monevo's Lender Panel will take this in to account when sourcing you a loan. Of course, in order to cover this risk, interest rates offered by loan lenders are usually higher than those offered to people with good credit. However being approved and repaying a poor credit loan on time can demonstrate to future lenders that you are able to adhere to the credit agreement and repay your debts on time. This will mean that better deals will be available to you in the future. As always, it's important to make sure you can afford the loan comfortably, especially if you are looking at a consolidation loan, and that the new borrowing lowers your overall monthly payments to unsecured credit. Your bad credit score will start to improve over time as you start to prove you can manage your finances effectively. Further loan missed payments or defaults will have a further detrimental effect on your credit score which is why an affordability check is vital before making the decision to take out further finance. Find out if you qualify for a loan today by filling out the form below.
Many people have been financially affected due to the recession in 2008; chances are that you had debt repayments to make at that time, and maybe you found yourself in the position of being unable to make repayments and have consequently suffered a poor credit score.
In order to be considered for a loan, you need to be able to prove to lenders that your current financial situation allows you to make repayments on time each month as failure to repay a loan will have a negative impact on your credit score.
What’s The Bank’s Role?
When you are applying for a loan with a poor credit history “Poor Credit Loans “ then the banks will usually not grant the loan to you. Banks do not take the risk of lending money to people who have a bad credit history. However there are lenders out there who do welcome applicants from all backgrounds, however you need to be sure that you can repay the loan on time.