Can I still borrow if I have a bad credit history?

We all struggle sometimes making ends meet, don't we? Sometimes this means you miss payments on loans and credit cards or simply can't afford them. Most of us get sorted soon after and deal with the fine and charges. However, it has been argued in the recent debate over unfair bank charges that for some people these fines and charges can make things worse and can even push people into long term debt. Often this isn't the only thing. Missing payments repeatedly affects your so called credit rating too. This rating is used by financial institutions such as bank and other loan providers to decide whether you are a suitable candidate for their lending services.

So, say you have a bad credit history for whatever reason, what are the chances of you still getting a loan? Well, there is opportunities for you to still lend money with certain lenders, however, these are often secured bad credit loans, meaning you will have to put an asset, usually your home against your loan. As a result these loans are also referred to as Home Owner Loans by some people. Getting a secured loan is a decision you shouldn't take lightly. In fact you might want to read our other article about secured and unsecured loans first here Unsecured and Secured Personal Loans.

So is it possible to take out an unsecured loan if you have a bad credit history? Yes, there is always the possibility to get unsecured personal loans, however once again you would be best to sit down and take your time while you consider different deals. It will be hard to get low interest loans or cheap unsecured loans when looking at this market. One of the things to look out for is APR and if you want to know more about this, you can read our article about here APR. The APR on some of these unsecured loans is very high, some over 100%! So although you might have got yourself a deal on a loan, your monthly repayments might end up only barely covering the interest. This means you will then have a loan but will be paying through your nose and for a long time to get it paid off.

So what other options are there? Well, believe it or not, there is still organisations out there willing to heleople get their finances straight. Various companies offer debt consolidation, debt management and IVA advice and help. However, all these things need proper consideration by yourself and it would be good to list the pro's and cons of the different methods. An IVA for example can really help you to get out of financial trouble, but it does mean you can't borrow for 5 years afterwards amongst other financial restrictions. Also different companies have different ways of helping you and sometimes even different levels of customer service. Here at Review Centre we offer you honest consumer reviews on a wide range of financial products, including Debt Consolidation Lloans and IVA's. Why not visit our Finance Section to ensure you pick the right company to really get you back on track!