Previous or
current credit problems don't have to hold you back from getting the finance you want. Even if you've had
CCJs, arrears, are self employed or have no credit
history - fortunately there are plenty of lenders who specialise
in offering mortgages, credit cards and loans for people with a bad credit
rating. Specialist lenders understand that
just because you have run into financial problems in the past, it
doesn't necessarily follow that you will be unable to meet your
financial commitments in the future. They provide poor credit loans to
many types of applicants - even discharged bankrupts - as long as the
borrower can afford to meet their monthly repayments. Loans are
available for both tenants and homeowners with bad credit history. If
you have run into serious arrears, perhaps because you get divorced,
fall ill or lose your job, you're likely to have a poor credit rating.
Minor blips on your credit record, such as missing a credit card
payment, failing to pay a parking ticket or forgetting to settle a
utilities bill, can also affect your eligibility for credit. Most
mainstream lenders will reject applications from people who have a bad
credit history such as County Court Judgements CCJs, defaults and bankruptcy.
You can also be rejected for a personal loan or mortgage for a wide
range of relatively minor problems such as not being on the electoral
roll, not having a bank account, receiving income benefits and even
making several applications for credit in a short space of time. Figures from analyst Datamonitor
estimate that 9.1m people were refused credit by mainstream lenders in
2005. Getting credit can sometimes seem like an impossible task and it's easy to get despondent
if you're turned down. The truth is no one has a right to get credit or to
be given a reason why credit has not been granted.
The good news is the adverse credit market has become far more
competitive in recent years with the differential  in rates between
bad credit and mainstream products reducing
significantly. Reputable lenders are beginning to
offer bad credit loans and mortgages for people with bad debts, CCJs or even a past bankruptcy
on their credit file. Contrary to popular belief,
there is no such thing as a credit blacklist detailing people who
shouldn't be lent money. Each lender will have their own criteria for
determining whether to accept you as a customer, they will use the
information you provide on the application form and the contents of
your credit file to make a calculation on your "risk" as a
potential customer. Use the search
facility above to find UK lenders who will accept applications from
people with bad credit history.
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