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Welcome to Bad Credit Loan UK

If you have bad credit, it no longer has to be problem. We are experts in brokering loans for people with adverse circumstances. You will find some of the lowest rates on the internet at Bad Credit Loan UK. Use the menu on the right hand side to find out any information you might need before you apply.

 

Frequently Asked Questions @ Bad Credit Loan UK

Q: What is the best way of comparing loans?

A: There are a number of factors that need consideration when applying for a loan, but the single most important factor is the loan A.P.R.

Q: What is the loan A.P.R ?

A: The A.P.R. on a loan represents the true cost of a loan to you. The A.P.R takes into account the loan interest rate and also any extra charges and makes it easier to compare loans when borrowing.

Q: What happens if I can afford to pay the loan off early?

A: If you wish to repay the loan early you have to ask the lender for a redemption or early settlement statement. This will provide information on how much you have to pay to redeem the loan. You will not ( unless the loan only has a few months left ) be required to pay all of the loan interest due over the remaining term. The method of calculating the loan settlement figures varies, of loans up to £25,000 the maximum you will repay is calculated using "the rule of 78".( this being a complex calculation governed by the consumer credit act 1974 ).

Q: I have a bad credit record, will I still be able to get a loan?

A: Usually, in the case of a secured loan…if you have sufficient equity ..Yes…The terms being offered, however, will vary according to how greater a risk you appear to be. If you have CCJ's, Defaults or Mortgage arrears, you must expect to pay a higher rate of interest. The vast majority of lenders use one of two major credit checking companies. If you or someone at your address has defaulted, or has a county court judgement, then it will probably be on record. This record is searched every time you apply for a loan, H.P., store credit or any other form of borrowing so your history will affect the terms on offer to you or whether or not you can obtain a loan at all.

Q: What exactly is a secured loan?

A: A loan that gives security to the lender on the loan rather than just a promise to repay the loan. As a rule this would normally be a first or second mortgage on the borrowers home.

Q: What happens if I already have a mortgage or loan secured on my home?

A: You will find it is possible ( in fact common ) to have more than one mortgage or loan secured on your property, most lenders will give a further mortgage or loan providing there is sufficient free equity in the property to secure the loan.

Q: Are there any benefits to having a secured loans as opposed to an unsecured loan?

A: This is dependent on the terms of the loan, but in general, a lot of lenders will only grant a loan when security for the loan is provided ( i.e. it can be easier to obtain a loan when you offer security - particularly in cases of adverse credit ) in general secured loans offer more flexibility in loan repayment terms, but the most important factor has to be that the interest rate on secured loans is often lower than unsecured loans.

Q: What happens if my loan application is not accepted?

A: Occasionally a lender may not wish to give you a loan, this could be for any number of reasons, but the lender does not have to tell you exactly why you have been refused! You can however ask for the name and address of any credit reference agency the lender has used for assessing the loan.

When you apply for credit the lender will request a credit reference probably from one of the two agencies::

Bad Credit Loan UK provides background information only and accepts no responsibility or liability for any loss or damage incurred as a result of relying on information contained on this website. If you have a specific problem you are advised to consult an appropriately qualified professional.