Bad credit loans are designed for people who are looking for a loan but have a poor credit history. While having a bad credit rating can make it much harder to find cheap loans, there are still options available to you if you want to borrow money and avoid payday loans, which are extremely risky and can easily push you further into debt.
As with any loan you need to be well informed before making a decision, however this is especially true if you need a loan but have a bad credit rating.
It is also important to understand that having a poor credit history and having no credit history are different things. Having no credit history, also known as having a thin credit file, is usually experienced by young people who have never had a credit card and haven't been able to build up a credit rating.
There are many reasons why someone might have a bad credit rating - perhaps mortgage repayments have been missed or you have had a County Court Judgment (CCJ) taken against you? Whatever your past, there are always options available to you.
Here we look into the potential benefits and downfalls of bad credit loans, and let you know what you need to consider when looking into loans for people with bad credit.