Poor Credit Rating & Loans

For people with a poor credit rating, obtaining a loan can be an extremely difficult task but it is by no means impossible. There are a number of lenders who aim specifically to advice and finance people with poor credit histories. You are unlikely to be offered an unsecured loan if you have a poor credit rating because the lender will not wish to increase the already sizeable risk of lending you money. If you are offered an unsecured loan, you should expect the interest rates to be relatively high.

Anyone who has a poor credit rating might find it easier and better value to apply for a secured loan. This loan will typically be offered on better terms because the collateral provided guarantees the lender that they will not lose money, even if you default on the loan repayments. However, as with any loan, this option is only advisable if you are certain that you will be able to make the repayments; you could end up losing your house or other valued assets if you are unable to pay.