It seems that some people will always be on the lookout to scam other people out of money and one of recently highlighted scams is credit repair companies. These companies offer to fix your bad credit rating for a fee. However, they do not work miracles as they might suggest but they do leave you out-of-pocket. If you are looking for a loan but have poor credit there are bad credit loans available, so do not think you have to pay out to repair your credit rating to stand any chance of being accepted for a loan.
You name it and there will probably be a scam for it. For instance, Age Concern has warned people about the latest scams. They have highlighted TV license scams, fake police phone calls, BT scams, pension scams and boiler scams. These are merely a few of the ways that people have managed to con vulnerable people and extract money from them.
Credit Repair Scams among the Latest
It is not just the elderly who are susceptible to being conned out of money that they cannot afford to lose. Anyone in a vulnerable position can become a victim and there is no one more vulnerable than people with poor credit ratings who are short of money and want to get a loan.
When faced with an unexpected bill or financial outlay it can be tempting to put faith into someone offering to repair your credit rating for a small fee. This is exactly what has been happening. While they are not doing anything illegal, credit repair companies are scammers, if they tell you they have strategies required to repair your credit rating so you can apply for a loan. Desperate people will take drastic measures and sadly, many people do believe that the company can give them a better credit rating so that the chances of them being approved for a loan are increased.
Improving Your Credit Rating Does Increase Approval
Part of what they tell you is true. If you improve your credit rating, your chances of being approved for a loan can improve. What they do not tell you is that you do not have to pay a company to do this as they cannot do anything that you could not do yourself.
That’s right. Everything that a credit repair company can do, you can do yourself, so there is no need to pay them to do it. The only tools the company will use are listed below but you have access to do the same thing without paying:
- Check your credit file for any mistakes and have them corrected;
- Contact lenders in the case of CCJs or defaults on loans.
Companies may well be able to repair your credit rating, we are not disputing that fact, but then so can you, and free. The company meanwhile asks for payment. Credit repair companies may try telling you that you won’t be able to get a loan without repairing your credit file. This is not true. Many lenders will offer bad credit loans and we work with lenders who do.
There is nothing wrong with improving your credit rating and we encourage you do so. Just do not get conned into thinking that credit repair companies can wave a magic wand or have different tools to what you can access, as this is not true. Nor is it true that you will be unable to get a loan. It may be more difficult to find approval with a poor credit rating, but not impossible.
Types of Bad Credit Loans to Consider without Improving your Credit Rating
Lenders have come to understand that the circumstances of people can change over time. Just because you made mistakes in the past do not necessarily mean that you will make them again.
You may now be in a much better position finanically and know that you have the capacity to repay a loan. This is something that the lenders we work with will take into consideration. Instead of just concentrating on your credit file to give you a decision, they will also take into account the affordability. They will still look into your credit file and it does not hurt to attempt to improve it, but this is something you can do yourself and does not need paying for.
Try Applying for Small Loans
Loans offering a small sum of money that are repaid back fast are the most suitable types of loans to apply for if you have a bad credit rating, as they are usually the easiest to find approval.
Payday loans and short-term loans are two suitable options for loans where a short amount of money is borrowed. These two loans are favoured among people with poor credit ratings looking for bad credit loans.
The payday loan comes with these benefits:
- You may be able to borrow between £100 and £500;
- You can spread the loan over one to three paydays;
- You are not stuck with a long term loan over many years;
- The application can be made online and is undertaken within minutes;
- You get an instant decision;
- If approved money may be transferred to your bank account within hours;
- A good choice if you find yourself faced with an unexpected financial outlay;
- It is one of the easiest types of loans to get approval for with a bad credit rating.
The payday loan is a good option for anyone with bad credit who wants to prove to lenders that they can be relied upon. By taking out a small loan and repaying it within one month, it can contribute to improving your credit rating, as a note of the loan being paid off will be made on your credit card.
A short term loan offers the following benefits:
- You might be able to borrow between £500 and £1,000;
- The repayments of the loan can be spread out for up to 12-months if required;
- You can apply online and get an instant decision;
- Lenders do not usually want to know why you want the money.
Both of the above loans are usually easier to find approval for with a poor credit rating. The most suitable for your circumstances is going to be dependent on how much money you require and how long you wish to repay it back.
Guarantor Loans and Personal Loans
Personal loans are somewhat more difficult to find approval for than other types of loan if your credit rating is not perfect, but it is not hopeless to find approval. The lenders we work with offer numerous loan options and do consider all applications providing the lender believes that you are in a position to repay the loan.
Both the personal loan and guarantor loan may allow you to borrow up to £15,000. Both loans may also permit you to keep down the monthly repayments by spreading them out for up to 36 months. However, this is one crucial factor in which the loans differ.
With the personal loan, you need to have someone to stand as a guarantor. The good news is that lenders are more lenient when it comes to approval if your credit rating is poor. The bad news is that you have to get someone to stand as your guarantor. This is typically a very good friend or a relative but not a spouse or partner.
If you find the loan repayments cannot be met the repayments would then fall back onto your guarantor.
We Can Help to Find You a Loan
Just as you can fix your own credit score, the same applies when looking for a loan. However, there are benefits to allow us to help you find a loan.
- We work with a panel of lenders;
- You make a single application to search with many lenders;
- The application is fast;
- You get an instant decision;
- You don’t have to worry about numerous searches showing up on your credit file;
- The lenders we work with do not focus too much on your credit score.
As you can see, there are options for bad credit loans without even needing to worry about fixing your credit file before applying for your loan. Of course, it does not hurt to try to fix your credit rating but this is something you can do for yourself. You do not need to pay a company to do this on your behalf and nor do we recommend you take this option. Whether you are looking for short term borrowing with a short-term loan, payday loan or you want a guarantor loan or personal loan, we can help you to secure one.