Bad Credit Loans

Secured Loans for People with a Bad Credit History

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Struggling With Bad Credit?

Having a poor credit history or a low credit score is not something that should stop you getting the credit you need. If you are a homeowner and have an appropriate level of provable income then a secured loan could be a viable option for you, and there are many circumstances in which borrowing money against your property can significantly help you out financially.

We Can Help You

If your circumstances have improved since you ran into some bad credit, and you now want a fresh start, then a secured loan can be used to clear your mortgage arrears and pay off your defaults, CCJs and unsecured arrears. Similarly, if you have a large credit file and are beginning to run into trouble paying them, consolidating can be the easiest way to get your finances back on track.

We can cater for you and choose a term that will make your monthly payments affordable for your budget, so that you are less likely to fail to make payments in the future. One payment by Direct Debit on a date that suits you is of course much easier to handle than multiple payments at various different times during the month, and reducing your monthly outgoings is something that can help everyone – especially those who have had a bad credit history and are still paying for it.

Most people don’t realise that you can still borrow money with a history of bad credit. Most lenders will need you to show some intent in that you will need to have made your last mortgage payment. The interest rate that you are charged will depend on what is on your credit file and the equity in your property. The APR will depend on the fees charged and the term of the loan. But what doesn’t change, is the fact that a bad credit history is not something that definitively stops you from borrowing.

What Happens Once I’ve Applied?
After submitting your loan application our experienced team of underwriters will search the market right away to find the best loan offers for your circumstances. We can usually get an in-principle decision within the hour.

If you need any help or advice please call us on 0800 840 3636 or drop us an email.

Loan Application Form

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First Trust Finance Has The Answer

Of course, there can be drawbacks for someone with bad credit to borrow more money. Using a secured loan to pay off credit will often mean taking the debt over a longer term and therefore paying more interest over the term of the loan – especially if you pay off a default or CCJ where you may not be paying interest. You are also taking an unsecured debt and transferring it to a secured debt, meaning that your property is now on the line.

The important thing to remember about taking out a secured loan to consolidate your debts is that this is not a short-term solution, it’s a long-term one. The idea is to get back in control of your budget and to do that you will need to be self-disciplined with your finances in future. There is no point in consolidating your credit cards only to carry on using them and building up a debt again, and if we or the lenders we work with see this as something you may do, we will not proceed trying to arrange a loan for you. After you have taken out a secured loan we would strongly recommend that you cancel cards and close accounts for good.

There are other ways, beside debt consolidation, which someone with bad credit can benefit from a secured loan. The funds do not have to be used to pay off existing credit, and can be used for most legal purposes. You may choose to take a loan for home improvements or make a large purchase – however if you are struggling to maintain your finances at present it would not be a good idea to take out further commitments, especially if they are secured on your property. One way to balance that out, however, could be to borrow enough to pay off some or all of your credit and carry out those necessary home improvements with a portion of the money too.

If you want to get back in control of your monthly budget but have poor credit then a secured loan could be the best option for you. Draw a line under your poor credit score and start working towards achieving a higher score in the future. Our ideal goal for someone with bad credit is to get them back on their feet and where they deserve to be.