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In today’s
times anyone can end up with bad credit. Let us look at what you should do if
you are told by a lender that you have bad credit. First of all get a credit
report from all the three credit rating agencies. Then look at the reasons why
you have a bad credit score. It could simply be a mistake of the agencies and
it is necessary to check that they have calculated your score properly. Then
again it could also be the result of some mistakes that you have made in the
past. For instance you may find that you have a 5 pounds arrears on an account
which you thought you had closed. Simply paying off that money and closing the
account can improve your score to a great extent. At the same time, close all
the unnecessary accounts which are lying open for no reason. Then again you
should ensure that your name is on the electoral role. Taking care of these
small things can improve your credit score to a great extent.
If you
approach a loan broker, their financial adviser will advise you to take a loan
for bad credit and then repay it in a timely and regular manner. This will also
go a long way in improving your credit rating. However, the question is where
you can get a loan when you have bad credit and the answer is simple. All you
need to do is approach a loan broker and they will put you in touch with a
specialist lending agency which provides short term loans bad credit quite
easily. Not just short term loans, but also long term loans for bad credit are
available with these lending agencies.
Why lenders
provide loans for bad credit?
It is not
that the lenders have kindness of heart to provide loans for bad credit. In
fact providing these loans is a very smart move and they do so in order to earn
more money. This is because usually the loans for bad credit have a higher rate
of interest than regular loans. At the same time, just because you have bad
credit does not mean that you do not have the intention or the ability to repay
the loan. Chances are that due to some financial mistakes or pure misfortune
you ended up with a bad credit score. However, in the current situation you may
have a stable job with a regular and reliable income. The lending agencies look
at these factors when they provide a loan to people with bad credit. Although
as mentioned the interest rates on bad
credit loans are higher, you can get loans at reasonable rates if you go
through loan brokers.
Payday loans
These are
also short term loans, but as the name suggests they have to be repaid on your
next payday in a single lump sum. The tenure for payday loans is 7 to 30 days
usually, but if you approach a loan broker they will also be able to get you
payday loans for longer tenures. At the same time, these same loan brokers will
help you to get payday loans for bad
credit if your credit score is not perfect.
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