Trying to get a loan when you have experienced some bad credit may seem a daunting task, but the right company may well still be able to help. Our experienced loan team are here to help you obtain the loan you are seeking and our lenders` plans offer amounts from £10,000 to £250,000 for virtually any purpose.
This broad selection of UK bad credit loan options alongside repayment terms of 3 to 25 years could mean you can get your funds and have affordable payments, even with adverse credit or
a low credit score. Being rejected for loans can be a bit of a blow and even quite stressful, especially when some bad credit stops you from getting a much needed loan to deal with debts, use for a wedding/holiday or make essential home improvements - so let us try to help you achieve your goals.
Our team are highly experienced in helping our customers get loans even with bad credit. Speak to our team for free on 0800 0159108 or complete our on line enquiry form (no credit search on this form) and we will call you. All quotes are provided at no cost to you, plus unlike some companies if we cannot help we will always try to explain why, so you may be able to resolve those bad credit issues and turn your situation around in the near future.
Many people when looking for a loan approach their bank or building society in the UK however, with poor credit (even if it is from a few years ago) you may struggle to obtain a loan from them
or to obtain the amount you need. Optimise Finance are very well placed to help you when this situation occurs, as we have access to lenders who may be able to help if you have some
adverse credit history. The interest rates charged by some specialist lenders may be a little higher than you may have got from your bank, this is because customers with some bad credit
are seen as a little higher risk to the lender. This is known within the finance industry as rate for risk. That being said homeowner loans are often manually assessed rather than just being credit
scored and there are other factors which can help your lender make a positive lending decision in your case.
The Management team at Optimise Finance have around 50 years combined experience in the UK loan market and have established trusted ties to specialist lenders that can help when other
lenders will not.
Many lenders, when deciding who they will loan money to, typically use a number based score model that examines the applicant`s credit history and other factors. If their model works for
your credit profile and history then there is a good chance that a loan will be approved subject to income / any other criteria being met.
However, if you have poor credit you could be declined or receive less favourable loan terms, such as a smaller loan amount. Some of our lenders do not solely rely on a score model when advancing a loan and we have loan plans available for those of us who may have been declined in the past.
A `bad credit loan` refers to loans that are made to customers with an adverse credit history, many loan providers will not lend to clients who have bad credit. This is because the lenders
perception of this type of client is that they are more likely to default on loan payments, and consequently lenders will not consider that risk. Some of the lenders on Optimise Finance
lender panel are willing to accept the additional risk and are more likely to make a positive lending decision than other mainstream lenders, such as banks and credit unions. However, it`s
important to remember the interest rates available with a lender that will provide a loan for bad credit customers may often be higher than those available through some of the high street loan providers that are focused on lending to people who do not have bad credit.
Optimise Finance may be able to obtain a lender who will help clients with bad credit, we suggest that any potential borrower should also try to improve their credit standing. This means
reviewing existing credit they may have and making a plan to repay them on time, even to consider a debt consolidation loan if they are not able to meet their ongoing payment commitments. By reducing your monthly debt repayments, you may help to start rebuilding your credit profile or avoid damaging it with arrears and defaults . However if you take out a debt
consolation loan, it`s important to remember that even though your monthly outlay is reduced because the debt is spread over a longer term the amount of interest you pay back is likely to be more than if the debt was kept in place.
Understanding your UK credit rating is vitally important and an important step to knowing how it can be improved .The result of having bad credit in many cases is down to;
failing to make the required monthly repayments on a loan or credit cards,
falling behind on your mortgage or incurring a county court judgement. However, bear in mind these credit transactions aren`t the only items that affect your credit profile
making late/ missing a utility payment or mobile phone contract payment could also lower your credit standing
having a shared current account, loan or credit card with an ex-partner who does takes on the account but does not make the minimum required payments, this will create bad credit for both parties.
Quite surprisingly, making your loan repayments on time is no guarantee of a strong credit rating. For instance not being on the electoral role will adversely affect your chances of obtaining credit as the lender needs to be able to track a borrower in the event of missed repayments. Amazingly, if you`ve never borrowed money, it`s likely that you will find it difficult to obtain a loan .This is because lenders view past or current credit repayment history to assess how a potential borrower is likely to repay a new loan. Therefore, having very little or no credit can impact any loan or credit application in a similar way as having a bad credit history.
Credit reference agencies in essence are data collation companies. The major ones in the UK are Experian, Equifax and Callcredit. These companies receive information from lenders and public information including who is on the electoral roll and dates plus amounts of any county court judgements . The agencies keep this information securely, allowing access to lenders to view the information to assess the potential risk a customer poses to the institutions if a loan was granted . The information helps some lenders, as they rely on this data to decide if the client will be granted the finance they are seeking.
The information is given to the lenders in a format that is similar with all the agencies .This shows the credit history of all loans or credit transactions taken out by the individual. It will also show any defaults, county court judgements, house repossessions or bankruptcies (these all putting a bad or poor credit slant on the individuals profile). The information shown by the agencies will show a lender how the client`s credit has been kept, listing your credit accounts, dates they were opened, any missed payments and the credit limit or loan amount. This information will still remain in your report for six years after any credit is settled.