Why do people need bad credit loans?
If you can’t get a loan or any other type of credit from high street lenders, it can make things very difficult when an emergency arises. For example, what do you do if your car fails its MOT and you can’t get to work? You’re in the catch-22 situation of not being able to afford the repairs but not getting to work to earn money to pay for them. So apply for Bad Credit Loan on Get Credit Loan.
What happens if your pet needs emergency treatment, but you don’t have any insurance or spare cash in the bank? Or you might receive an unexpected bill. You haven’t budgeted?
It’s situations like this that prompt people to consider bad credit loans, also referred to as low credit loans. But who is unable to obtain credit from mainstream lenders due to poor credit history.
Why is it difficult to get a loan with bad credit history?
If you’ve found it challenging to get credit, whether it’s a loan, a credit card, or even a phone contract, it’s highly likely you have a low credit rating.
When you apply for credit from a bank or similar provider, the lender will use your credit history to calculate the risk of granting you credit if the risk is too high or, in other words. They think there’s a good chance you won’t be able to keep up with the repayments.
Lenders base their decisions on the contents of your credit file, which they request from one of the UK’s three credit reference agencies.
Although the lender will take many factors into account while making their decision, the most influential will be your credit history and current credit score. Poor credit history or low credit score will make it extremely unlikely for your application to be approved. However, every lender differs in terms of the criteria they use.