Poor Credit Secured Loan Guide

Applying for a poor credit secured loan online with any company is going to cost you more no matter how you go about it. Homeowners with a poor credit rating make lenders less willing to lend money with average rates of interest.

However, don’t take this to serious because all we are saying is that interest rates will be a bit higher than normal but you can fix that.

A poor credit secured loan can sort out your credit rating when you use the money for debt consolidation. You can take the steps necessary to get defaults removed by Experian the credit reference agency.

When you apply for credit facilities like credit cards, store cards and mobile phones and the lender just says no and that’s all you get, it can be very frustrating for you, you may have been there already. It's Experian's (The Credit Reference Agency) computer that says no, not the lender.

They are ways to make your credit score better which will make your poor credit secured loan application run a bit smother for you in the long run, here they are.

Note: These tips are for homeowners and tenants, if your a homeowner and you need a secured loan now do it because it’s easy if you’re a homeowner with equity even with bad credit.

The Top Six Ways To Make Your Credit Score Better

1.

Not Being On The Electoral Roll...

If you’re not on the electoral roll at the address on your application, it can hurt your application because the lender needs to be able to match you with your address. They do this to make sure they can get a hold of you if you default in your payments.

Being on the electoral roll should be standard when you pay council tax, your local council will automatically place you on the electoral roll by default. There is no need to contact them and ask them to put your name on it when your the owner or occupier of the property you live in.

2.

A Poor Credit History...

With a poor credit history, 35% of your credit score is counted towards your final score. County Court Judgements (CCJs) and other defaults do count as part of your credit score as well as late payments. Late payments can dent your score enough to make the lenders say no to you.

While defaults and late payments can stay on your credit file for 6 years, they disappear over time as you make up for it by paying your debts regular for up to a 12-month period as long as your stay focused and pay them on time. Setting up direct debits is the best way to do this.

Being a homeowner with bad credit, you have the upper hand when it comes to a poor credit secured loan because you have property or equity in your home to secure your new loan.

3.

It Has Been Less Than 3 Years At Your Current Address...

Like all lenders, they like a steady track they can follow. Your score will be higher if you have been at your current
address for more than a 3-year period.

They may fault you a little if you give two addresses within a 3-year period but it shouldn’t hurt you that much if your previous address is clean from any defaults and bad debts on your name. When you’re a homeowner, this may not affect you that much at all.

Multiple addresses in the last 3 years will have a greater impact and your credit score will degrade much lower, bit it will not stop you applying for a poor credit secured loan from any lender.

4.

Change of Jobs...

Lenders what to see you in a full time steady job so you’re able to pay back your poor credit secured loan plan no problem every month. Having several different jobs thought-out the year can hurt your credit score too.

You'll have a much higher credit score if the job you have is secure and you have been there for at least 3 years or longer.

It's ok to jump to job to job as long as you have been in your new job for a few months before you apply for new credit facilities. Lenders sometimes want to see your pay slips or bank account statements before they make the final decision about whither or not to give you the credit.

5.

Having a New or Having No Bank Accounts...

Being with your bank for years will give you a great boast when you apply for credit or a poor credit secured loan. If you have only opened your bank account, lenders will look down on that a bit, but you could make up for that in other ways, like being at your address for more than 3 years solid or more.

If you haven’t got a bank account, lenders will probably not grant you a poor credit secured loan and you'll need to open one as soon as you can. You will need a bank account when applying with any poor credit secured loan company online and because your a homeowner, you probably have one.

6.

Making Too Many Credit Applications For Credit...

When you apply for a poor credit secured loan, a file is generated on the computer at Experian (The Credit Reference Agency) and lender can see this when your file comes back when you apply for credit with them.

Multiple credit applications within a short period of time will have a negative impact to your credit score and the results will be a lower credit score. This also says to lender that the applicant is desperately trying to obtain credit from anywhere they can.

If you have made several (Three or Four Times) applications for credit or a poor credit secured loan, it’s advisable to wait six months to apply for new credit.

You can make more than one credit application; off course but it’s good to use a secured loan broker to compare your poor credit secured loan rates for you and this will result in one credit search and not several poor credit secured loan applications, it's your best bet.

This article will explain why you should use a broker to find you a poor credit secured loan online with the greatest rates available to you from any lender in the U.K.

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(THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT.)