A bad credit rating can limit your borrowing options. CCJs (County court judgements), defaults on payments, mortgage arrears and bankruptcy orders leave a black mark against your name and can be a problem when trying to get a loan.
Fortunately there are some lenders in the UK who specialise in bad credit loans for people with poor credit history, both tenants and homeowners.
If you have a low credit score or poor credit rating, the chances are you will experience difficulty getting a personal loan from a high street bank. However, don't despair as there are a selection of specialist lenders offering finance to people from all walks of life including personal loans, payday loans with no credit check and car finance.
As a response to the financial crisis and economic downturn most lenders tightened significantly their credit scoring procedures. Traditional lenders tend to have an ideal customer profile and they do not always welcome those who deviate from it. In fact many lenders have automated credit scoring systems and those borrowers who scores don't add up simply don't get considered.
For people who don't fit the mould, the impact has been profound with a dramatic reduction in the number of loan products available for people who have a blemished credit history.
The legacy of the banking crisis continues to dominate the loan market place today with mainstream lenders only really interested in consumers with pristine credit records.
Nevertheless, there are still a small number of lenders who offer loans for people with bad credit history. However a major handicap that comes with being saddled with a poor credit rating is you will be deemed a higher than standard risk, meaning the deals available to you will never be the lowest on the market. Your past transgressions with cost you dearly in terms of interest charges.