Got bad credit? Help is at hand
Published Fri, Nov 22, 2013 Updated Tue, Feb 16, 2021
At the moment, the UK economy isn’t in the best of states, and thanks to the government’s acceptance of zero-hour contracts and apprenticeship schemes that fail to reward people with enough money to live on, millions of people have fallen behind with their financial commitments. Unfortunately, this has a dire impact on the credit scores of the individuals concerned and so it can become increasingly difficult to obtain any form of lending, be it short or long term. Still, there are some solutions available for anyone who’s savvy enough to seek them out.
With that in mind, we’ve taken the time to create this short article detailing some of the options you may wish to consider if you should find yourself in a bad situation. You’ll need to research each of the suggestions thoroughly before signing any contracts, as some will be more suitable than others for different circumstances, but we’re confident you’ll come away feeling a little less stressed and much more optimistic than you were previously. So, spend a couple of minutes reading through and then work out if any of the information listed below could solve your problems.
Although the companies providing this form of high-interest short-term lending have gotten a lot of bad press in the UK recently, if you’re in a desperate situation and need some cash to keep you going until your next wage packet comes in, they’re actually quite useful. Just be sure to read any contract you might sign thoroughly (especially the small print) because any failure to make repayment dates could see a £200 loan turn into a £4,000 debt.
If you’re credit rating is very poor, applying for standard credit cards from banks and major providers probably isn’t going to get you very far. However, there are some companies out there who deal specifically with bad credit credit cards and these are seriously worth looking into. The interest rates you’ll be expected to pay will obviously be higher than you’d find with the traditional providers, but they’re certain to be considerably lower than those you’ll obtain when taking out a payday loan.
Car loans, or logbook loans as some firms call them, can be the perfect solution to the money troubles of anyone who owns an automobile. Basically, they work like this: you make an application and fill in all the details about your car, then the company concerned will make you an offer based on their perceived value of the vehicle. Once accepted, the money will be in your bank within hours and you actually get to keep your car whilst the loan term operates. Also, the worst thing that can happen if you fail to repay the loan is a loss of your wheels, so you don’t have to worry about debt collectors wanting to take your possessions.
There are some other options for people in this situation like high-interest personal loans, but it’s a good idea to steer clear of them until you know for certain the other solutions aren’t suitable.