Article Categories
» Arts & Entertainment
» Automotive
» Business
» Careers & Jobs
» Education & Reference
» Finance
» Food & Drink
» Health & Fitness
» Home & Family
» Internet & Online Businesses
» Miscellaneous
» Self Improvement
» Shopping
» Society & News
» Sports & Recreation
» Technology
» Travel & Leisure
» Writing & Speaking

  Listed Article

  Category: Articles » Finance » Loans » Article

Guaranteeing a loan: Bad credit? ....join the clan!

By Marsha Claire

Bad Credit is not beyond reality. In fact today, it is almost the neighbour next door! This is a common misconception that we as borrowers tend to conceive when it comes to taking a loan. Today, the pace of life is constantly bettering its own record with price hikes and rises in the standard of living becoming a regular feature. Circumstances have made it logical to take loans to meet the requirements of day to day life. Many of us take this step and falter i.e. we fail to keep to our loan repayment terms and therefore end up with something called "Bad Credit". Bad credit doesn't happen to one in a million. It happens to many of us.

Bad credit is sometimes unavoidable in case of a family crisis, a financial crunch or a medical emergency arising during the loan term. At such times, it becomes difficult to make regular loan repayments. Result: "Bad Credit". A bad credit score definitely makes our loan-journey a little less smooth but definitely not impossible.
Bad credit can be caused by: Defaulting in payments, Bankruptcy, County Court Judgements (C.C.J's), Arrears, etc.

The growing number of people falling prey to bad credit has made it clear to lenders that they cannot do without doing business with defaulters. It is also illogical to penalize people for defaulting due to unavoidable circumstances. Besides, there are few means to guarantee that people otherwise rated with perfect credit, will not default on the loan. Since lenders have started accepting this fact, they have opened up new avenues specially catering to those with bad credit like bad credit personal loans, bad credit car loans, bad credit debt consolidation, etc.

Bad credit is bad after all and so has its drawbacks:
• Most loan requests by those with bad credit are declined.
Lenders prefer avoiding the risk they will have to face if they grant a loan to a person with bad credit. After all, it is money at stake!

• The few loans granted, too, come with extravagant interest rates.
To balance the bad credit and risk, lender charge exorbitant interest and inflexible terms even on basic loans. Besides this, bad credit loans, bad credit consolidation, etc. all come with extremely high rates. So, humongous interest is inevitable.

• Approval of such loans is time-consuming.
For secured loans, your details, credibility and collateral is thoroughly scrutinized and reinvestigated. This delays the approval procedure significantly. Unsecured loans are practically impossible to get as there is nothing to guarantee repayment to the lender.

Few tips on how to improve your credit score to get the loan you want:
• Reduce the number of debts/loans you have:
While paying off all your lenders concurrently, concentrate on 1 particular debt and pay it off completely to stop debtors from making negative reports against your credit.

• Offer collateral that has high value in comparison to the loan amount:
All a lender needs is assurance that he is going to get his money back. High-valued collateral provides this (in case of secured loans). But make sure that the loan amount you request for is considerably lower that the collateral value.

• Take only that amount or those loans that you really need:
After gauging your requirement, apply for more or less the same amount and not for something that's over the top. Sometimes, taking a loan is the easy way out; try to repay what you already owe instead and do it on time.

• Make use of a co-signer:
The better your credit score, the better your rates. Make use of a co-signer with perfect credit. Lenders verify your co-signer's details while you repay the loan. This helps you get loans with better rates and better terms. Try to regain the lender's trust.

• Stack up your cash assets:
Cash assets are important. Lenders like to see at least 6 months of cash reserves in the bank. This can mean a savings account, money market, or CD.

Clear your tracks and start from scratch; but start well. Resolve to make your payments on time. Every loan is tailored to your needs and financial standing, so choose wisely. You must have extensive knowledge about current rates and options to finalize any loan. Take expert advice from knowledgeable people. Getting as many quotes from as many lenders as possible simplifies the situation. Don't lose hope; remember … bad credit is not the end!!
About the Author
Marsha Claire is offering loan advice for quite some time. To find UK debt consolidation loan, bad credit loans, debt management, debt advice visit

Article Source:
If you wish to add the above article to your website or newsletters then please include the "Article Source:" as shown above and make it hyperlinked.

  Some other articles by Marsha Claire
Bad Debt Secured Personal Loan: Untangle Yourself From The Shackles Of Debt!
Bad debt? Something that doesn't need an explanation after all… Bad debt happens to everyone today. It is nothing but an easy consequence of the rising standards of living, unpaid bills piling ...

Personal Loans: Financial Solutions Personalised For You!
Whether it's funding your necessary needs like overdue bills, credit card dues, pending rent, household repairs and medical emergencies or ...

Easy Unsecured Loans: Cutting Short The Distance Between You And Your Money!
Life has not only got more competitive but also tougher than before, with everyone creating a niche for themselves in the constantly advancing contemporary world. Be it at work, at home ...

Cheap Debt Consolidation: Cutting Costs The Smart Way…
Debt Consolidation is something most of us are aware of and even if you are one of those who spend wisely and rarely fall into ...

Instant Decision Secured Personal Loan: In The Right Place, At The Right Time!
A bill overdue? Medical situation that calls for your immediate attention? Loan instalment coming up? A late pay cheque due to which your ...

Low Rate Secured Personal Loan: Bringing Down The Costs!!!
For those of us doing the rounds of the loan market, Secured Personal Loans are a familiar topic that is gaining popularity by the day. With the number of people taking these loans is constantly on ...

  Recent Articles
One Hour Cash Advance
by Peter Hughberry

Solve Your Debts With Credit Card Debt Management Plan
by Elaine Owen

Approves loan amount faster - Online personal loans
by Ashley Lewis

Cheap Car Loans Uk:Grab The Opportunity To Buy A New Car!!
by Aldrich Chappel

Get Bad Credit Unsecured Loan with No Hassle in UK
by Anton Gabriel

For The Van Of Your Choice: Used Van Finance
by Bonnie Castle

Finance on Low Rates Is Possible Through Personal Loans
by Peter Taylor

Secured Loans- Money at reasonable rates
by Joanne Clive

The dos and don'ts of adverse credit car loans
by Joanne Clive

Redeem your business ideas with business loans
by Angelo Drew

Unsecured personal loans: Easier and convenient
by Elizabeth Swann

Low Rate Secured Loan: Avail The Benefits Of Low Rates
by Aldrich Chappel

Can't connect to database