Low Credit Unsecured Loans

Credit rating and credit scores are consider the personal loan world. The perception is that if you don't have a high credit score, you'll find it nearly impossible to qualify for any type of Unsecured loans. That's a bit of sweeping statement really. The fact is that you often can qualify for unsecured loans, even with a poor credit score. It all depends on why your credit score is low.

Here's the shovel on credit scores. Some major finance companies sat down and drew up a list of characteristics of people who always pay their bills on time - the kind of people that they want as customers for Unsecured Loans and assigned a number value to each of those characteristics.

They also profiled people who default on loans, and assigned number values to their personality. Those personality include far more than just whether or not you've ever missed a payment on your electric account, or how much you still owe on your motor loan. You get points for how long you've been in a job, whether or not you're married, if you have children and whether or not you own or rent a house or a flat. You lose points if you're not making regular salary, don't appear on the tax rolls, have made payments late on bills or have never before borrowed money. Once all those numbers have been totted up, the finance company comes up with a number - your credit score. The higher your credit score is, the better the chance is of your being accepted for unsecured loans.

Some lenders, the high street banks in scrupulous, often make loan decisions based completely upon your credit score. The bank policy is to just say no to any person whose credit score is below a certain numeral. If you've just changed employers - even for a better job - and moved house to take that job, you could find yourself being considered a poor credit risk , even though the changes actually put you in a better position to pay off your loan.

fortunately, there are firms that specialized in making bad credit loans to people who have been turned down by the conventional banks and building societies. These firms are usually smaller than the banks, and are more willing to take a risk on someone who has a low credit score. Even when making unsecured loans, their finance managers take a more personal view of your circumstances. That means that they'll consider each loan application on its merits, not just on a few statistics tossed up by a standard algorithm.

Many of these unpleasant credit loan firms will even make unsecured loans to those who've had CCJs entered against them, or who has declared bankruptcy in the past. They take into concern the length of time since the announcement, and will often consider any justifying circumstances when deciding on the current loan application and setting the rate of interest.

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