When looking for credit, one of the biggest factors to consider is your current credit rating. If your financial history is less than desirable, finding lenders who can help you may seem to be an insurmountable task. The difficulty is, many lenders will want to ensure there is a low risk approving your application, which is why they will favour a higher credit score. However, this doesn’t mean all hope is lost when finding a lender. Here’s how you can still secure a loan with bad credit.
Discover Specialist Lenders
For those with bad credit, getting approved for a loan through traditional means may prove to be difficult. However, there are specialist lenders online who can help those with less than perfect credit histories. Seeking specialist lenders can minimise the chance of multiple declined applications and help you find affordable, flexible repayment terms for the amount you need. No credit check loans will focus on your overall financial health and affordability rather than just your current credit score. As long as you can show you have the affordability for the loan and repayments you need, specialist lenders like these can offer the help you may have struggled to get elsewhere.
Review Your Finances
As your credit rating will be lower than ideal, you’ll need to make sure you have enough disposable income available each month to afford repayments. If you can’t prove that your current finances are under control and you have low affordability, even a specialist lender will find it difficult to approve your application. If you haven’t recently reviewed your finances, doing so before applying for credit is always recommended as you can determine exactly how much disposable income you have. Comparing your income against your essential outgoings should provide you with a figure to work with. You’ll then be able to reduce any non-essential spending and have a true reflection of your affordability.
Check Your Credit Report
If you are already aware of what your current credit score is, this doesn’t mean you shouldn’t check your full report. The reason to do so if it has been a while is to look for any ways to improve your score. Your report will highlight areas to look at and with a few changes, your score could positively change. You may find there are aspects you weren’t aware needed updating or were outstanding, such as old accounts you no longer use, incorrect address history and more. Understanding what has caused your low credit score will help you determine if further borrowing is the right thing at this time. If the issue is your credit utilization is too high, where you have very little available credit, you may want to concentrate on lowering this before applying for more credit.
Taking into consideration the above, you’ll be able to find lenders who can help you apply for and get approved for a loan with bad credit. If you can afford it and a lender can see your financial woes are in the past, your chances of finding approval will increase.