Personal finance

Getting credit when you have a bad credit score

When you apply for a loan or credit card lenders will assess your suitability by checking your credit report. It can be tough to get a loan if you've got a blip listed on your credit report, this could be a previous missed payment or something more serious such as a CCJ or bankruptcy. If you've experienced any past credit issues you are likely to not rank particularly well when lenders undertake what is know as credit scoring. Any negative issues in your credit report will count again you and make your overall score lower. The higher your score the better the chances you will be accepted for credit. However there are some lenders who activately target their financial products at individuals who may have been or who are likely to rejected elsewhere. The catch is the interest they charge is significantly higher when compared to products which are available to people with high credit scores.  If you know you have a poor credit score, take a loan at sites such as Loans for everyone and Bad credit buster as these websites promote products from brokers and lenders who are more tolerant of people who may be turned down elsewhere.

A poor credit rating can be a major obstacle when it comes to getting a mortgage. Any blips which show up on your credit file will be viewed with much concern by the majority of lenders and will be a hindrance in getting accepted. For sure, you'll need a hefy desposit (at least 10%) and your best bet will be the specialist lenders who in general don't have high street branches. They will examine your individual circumstances and determine whether they think you have the ability to repay a mortgage. Most of these specialist lenders don't deal with applicants directly so you'll need to seek the help of an intermediary such as a broker. Bad credit mortgage brokers have the expertise and necessary connections with the lenders to be able to assist you.